Fraud Alert: Wallace Stock Transfers Agents Is not Registered to Sell Securities or Do Business in Washington, DC

The District of Columbia Department of Insurance, Securities and Banking (DISB) has received an inquiry on Wallace Stock Transfers Agents that it is offering securities services using a Washington, DC, address. However, Wallace Stock Transfers Agents is not registered to effect any securities transaction or do business in Washington, DC, DISB is warning all District residents that Wallace Stock Transfers Agents is falsely representing itself as a business located in Washington, DC. Its website, www.wallacesta.com, states that the business is located at: 1150 18th Street, NW, Washington, DC. However, Wallace Stock Transfers Agents is not located at this address. Individuals associated with the company appear to be located in Florida. If you have any questions about registration of a company or individuals who are offering or selling securities in Washington, DC, please contact DISB’s at (200) 727-8000 and ask for the Securities Bureau or the Enforcement and Investigation Bureau.

April—Upcoming DISB events DISB is hosting a series of Money-Saving Wednesdays seminars at its office at 810 First Street, NE, Suite 701. The topics are as follows: April 4 – Making Saving a Habit Presenters: Colleen Dailey, CAAB, and Nancy Register, Consumer Federation of America/America Saves In today’s economy, many individuals and families believe they cannot afford to save money and begin to build wealth. Yet, research shows that people of all incomes can, and do save and build wealth through long-term investments—when they are provided good information, institutional support and a financial incentive to prioritize saving over spending. The goal of this seminar is to show you that through various contributions, everyone can accumulate six-figure assets during their working years. The speakers will discuss specific savings strategies, as well as information and resources available through DC Saves. April 11 – Five Keys to Investing Success Presenter:  Richard Ricci, A.G. Edwards & Sons Investing offers the best means to achieve your long-term financial goals, but it requires a certain amount of risk. Your investment success depends on your ability to control those risks, as well as your ability to create a realistic plan and stick with it. Whether you prefer to follow your investments closely or spend just a few hours a year monitoring their performance, you’ll benefit from understanding the five keys to investment success that will be explained in this seminar. April 18 – ABCs of Saving for Education Presenter: Laurent Ross, Calvert Group With rising education costs, it’s important to know that there are several ways to save for future education expenses in tax-advantaged plans. Whether you are saving for your own education or your children’s elementary, high school or college education, this seminar will help you compare options and determine the best strategy to save for future educational goals. You’ll learn about Coverdell Education Savings Accounts (the District’s college savings plan), 529 college savings plans, tuition assistance grants available to District residents and more!  April 25 – Planning a Worry-Free Retirement Presenter:  Jon Ellenbogen, A.G. Edwards & Sons There’s more to having a comfortable retirement than putting your money in the bank and hoping for the best. In this seminar, you’ll learn about the various tax-advantaged ways to save for retirement and how to calculate the total amount you will need to save to maintain your current standard of living (or more) in your “golden years.” AARP Washington Highlands Chapter and Foundation’s Campaign for Wise and Safe Investing  Wednesday, April 11, 2007, 1 pm  Washington-Highlands Library, 115 Atlantic Street, SW AARP Ward Circle Chapter and Foundation’s Campaign for Wise and Safe Investing  Monday, April 16, 2007, 1 pm  Metropolitan Memorial United Methodist Church, 3401 Nebraska Avenue, NW AARP Penn Branch Chapter and Foundation’s Campaign for Wise and Safe Investing Monday, April 23, 2007, 11:45 am Pennsylvania Avenue Baptist Church, 3000 Pennsylvania Avenue, SE Seminar/Workshop on Saving for Education Presenter: Laurent Ross, Calvert Group Martin Luther King Jr. Memorial Library, Main Lobby Thursday, April 26, 3 pm to 4:30 pm

NAIC Lists Consumer’s Top Insurance Complaints

Recent statistics show that while consumer complaints around the nation decreased for the third consecutive year, the reasons behind those complaints have remained relatively the same for the past five years. According to data collected by the National Association of Insurance Commissioners (NAIC), the top three reasons consumers filed formal complaints against their insurance companies in 2006 were delays, denials of claims and unsatisfactory settlement offers. Rounding out the top five sources of consumer complaints were policy cancellations and premiums/insurance rating issues.

The NAIC maintains a centralized electronic Complaint Database System (CDS), through which states voluntarily report “closed” complaints. A closed complaint is one that has been investigated and resolved to the satisfaction of the state or jurisdiction in which it is filed. First established in 1990, the CDS was significantly expanded in 1998 and now houses more than 2 million complaints.

A total of 190,572 consumer complaints were reported to CDS in 2006, a 7.8 percent decrease from the previous year. This information is based on the submission of data to the NAIC from the state insurance departments. The NAIC does not collect all complaint data from all states.

Aggregate data compiled from the CDS can be accessed on the NAIC’s website at www.naic.org through the Consumer Information Source link. By accessing this program, consumers can obtain company–specific complaint ratios (the ratio of the company’s market share of complaints compared to the company’s market share of premiums for a specific policy type), as well as aggregate counts of complaints by state and by type of coverage for specific companies. Headquartered in Kansas City, MO, NAIC is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five US territories. Its objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise.  To file an insurance complaint with the District of Columbia, visit our website at disb.dc.gov.

DISB to Participate in Mortgage Licensing System

DISB plans to participate in the Residential Mortgage Licensing System now under development by the Conference of State Bank Supervisors (CSBS), and the American Association of Residential Mortgage Regulators (AARMR). The system is expected to accomplish something that has been unprecedented in the mortgage industry.

“DISB plays a critical role in regulating a significant segment of the lending industry, and our participation in the system will enhance consumer protection and streamline the licensing process for mortgage regulators and the mortgage industry,” said DISB Commissioner Thomas E. Hampton.  DISB’s participation in the system is intended to improve the efficiency and effectiveness of its supervision of the US mortgage market; fight mortgage fraud and predatory lending that costs consumers and the mortgage industry millions of dollars in losses each year; increase accountability among mortgage industry professionals; and unify and streamline state license processes for mortgage lenders and mortgage brokers. The system will be used by DISB to accept and process newly designed national, uniform license applications and renewal forms that have been created by state regulators over the past two years. Licensees will be able to electronically manage a single record in the system to apply for, amend, renew and surrender licenses issued by one or more state mortgage regulators. The system is scheduled to go operational in January 2008 and DISB anticipates joining the Residential Mortgage Licensing System some time in 2009 when full functionality for the system’s initial release is completed. More information about the CSBS/AARMR Residential Mortgage Licensing System may be found on the web at www.csbs.org.