Quarterly Industry Newsletter: Division Offering IARCE Webinars

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Colorado Division of SecuritiesDivision of Securities Logo
Quarterly Industry Newsletter
March 2024 


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Investment Adviser Representative Continuing Education Webinars

On February 7, the Division hosted its first informational webinar on new continuing education requirements for investment adviser representatives. Slides from the February 7 session are available here

The Division will host two more webinars with similar information. Register for the upcoming sessions:

April 3 from 1-2 p.m. MT

June 5 from 1-2 p.m. MT

Any new questions or information brought up in subsequent webinars will be addressed and found in this document on our website: webinar-specific FAQ. Attendees don't need to attend more than one webinar to get all the information covered.

The Division's 2024 investment adviser examination priorities are available for review. This year, staff are highlighting the importance of firms to capture and maintain, in writing, client suitability information and key clarifications and changes set out in the new rules adopted by the Commissioner that became effective in March 2023.   

The Division reminds all firms that they are required to maintain books and records, and upon request of the Division staff, are expected to produce them in a timely manner for review. View the 2024 priorities.

Are You and Your Clients Aware of the Risks of Online Investment Scams?Image of direct scam messages on social media.

The Division receives regular complaints involving “pig butchering,” a relationship-based scam often initiated online. Scammers build intimate relationships with individuals on social media and dating apps before asking for money. In 2023, the Federal Trade Commission found that U.S. consumers lost $1.4 billion to investment schemes on social media platforms.

Please educate your clients about the growing risk of online investment scams and the red flags they should look for. 

Image of a calculator, magnifying glass and business records.State Securities Regulators Recover Over $1 Billion in 2022

A recent North American Securities Administrators Association (NASAA) report found that state securities regulators initiated more than 1,000 enforcement actions in 2022. These investigations led to $1 billion in monetary relief for consumers, $702 million in restitution and $223 million in fines.

See information on the enforcement actions taken by the Division.

Recent Enforcement Actions

January 31, 2024 — Colorado Securities Commissioner Tung Chan filed a complaint against Joseph G. Holder Jr. of Denver based on allegations of a romance scam to defraud women he met through dating apps and at gyms. Holder allegedly worked to gain the women’s trust and then induced them to invest in a fabricated medical-related project. Read the press release about this romance scam. 

February 12, 2024 — Commissioner Tung Chan filed an amended complaint in the civil fraud case against Eligio (Eli) and Kaitlyn Regalado of Denver, INDXcoin, LLC and Kingdom Wealth Exchange LLC. The amended complaint includes new evidence and expands to 12 more defendants, including Mr. Regalado’s father and brother-in-law. On January 16, the Denver District Court granted a preliminary injunction and asset freeze against Eli and Kaitlyn Regalado, INDXcoin LLC, Kingdom Wealth Exchange LLC and others. Learn more about the amended complaint and preliminary injunction and asset freeze.

Have You Considered a Career as a State Securities Regulator? Image of a job hiring sign.

Are you interested in making a difference by protecting Coloradans from securities fraud? The Division is looking for examiners to join our team!

Securities Compliance Examiner I (Financial/Credit Examiner I): Examiners process applications of firms and professionals who apply to be licensed. They also examine licensed firms by reviewing their books and records to ensure they comply with the Colorado security rules and statutes. Exams may include onsite visits to firms. Examiners assist with settlement negotiations with licensees. Additionally, they interact with licensees by answering questions, pointing out compliance deficiencies and issuing regulatory guidance. Learn more and apply

Visit our careers page to stay up to date with current job openings. Interested candidates can email dora_SecuritiesWebsite@state.co.us with questions.