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Florida Office of Financial Regulation

Bradenton Man Sentenced for Role in Investment Fraud Scheme

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The Office of Financial Regulation today announced that Terrance Taylor was recently sentenced to five years in prison to be followed by three years of supervised release for his role in an investment fraud scheme. He was also ordered to pay more than $3 million in restitution to his victims.
Commissioner Drew J. Breakspear said, “I thank the Federal Bureau of Investigation and the United States Attorney’s Office for the Middle District of Florida for their assistance in this case. The Office of Financial Regulation will continue to work with state and federal partners to bring financial criminals to justice.”
Taylor, along with co-defendant Timothy Roberts, sold stock in Savtira Corporation, Inc., a Ybor City based company, which purportedly offered a centralized, cloud-based shopping cart platform for online and traditional retailers to sell goods. They lured victim investors by making false claims and misrepresentations about the company’s profitability, alleged contracts and ownership of patents. The investigation revealed that the stock certificates were essentially worthless and the victims’ money was used for personal expenses.

OFR Releases Fifth Edition of Fast Facts

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The Office of Financial Regulation today released its annual Fast Facts, providing consumers and stakeholders with a pocket-sized booklet containing agency data and trends for the past fiscal year.
Commissioner Drew J. Breakspear said, “The Florida Office of Financial Regulation is committed to protecting consumers while promoting growth of financial services industry. I encourage all interested Floridians to learn more about our agency and how we can help them verify the license of a financial services business and protect them from financial scams.”
Highlights from this year’s agency snapshot include:
  • Increased Taxpayer Value: Licenses under regulation by the OFR have increased 2.9 percent in the past year and have increased 15 percent in the last five years. The OFR now oversees more than 444,000 licensees.
  • Improved Customer Service: In Fiscal Year 2016-17, the OFR answered more than 40,000 consumer calls in an average of 19 seconds.
  • Delivered Value to Businesses: In Fiscal Year 2016-17, the OFR approved more than 79,000 applications in an average of 5 days per application.
The Florida Office of Financial Regulation also offers another valuable online resource for consumers, the Consumer Knowledge Center, where Floridians can learn more about a variety of financial literacy topics, including how to spot potential scams.

Consumer Alert: Financial Abuse by Guardians

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If no designated beneficiary or advance directive exists or either is contested, a guardian may be assigned by the court to oversee financial matters in cases where an individual is no longer able to do so for themselves. Unfortunately, there are unscrupulous guardians looking to take advantage of unsuspecting victims. The Florida Office of Financial Regulation encourages Floridians to be aware of the red flags indicating potential guardian financial abuse.
The North American Securities Administrators Association (NASAA) recently unveiled a new publication, “Guarding the Guardians,” aimed at helping consumers identify signs of guardian financial abuse. Signs of potential financial abuse by a guardian may include:
  • Using guardianship authority to transfer property for the guardian’s benefit.
  • Receiving personal payments from a protected individual without court permission.
  • Authorizing frequent cash withdrawals from the protected individual’s accounts without explanation.
  • Using or borrowing property for personal benefit without court authorization.
  • Making unexplained decisions that are not in the protected individual’s best interest.
Even though a family member may not want to take on the role and responsibilities associated with guardianship, it’s still important for a family member or trusted contact to monitor the activities of the guardian. If you suspect abuse, contact appropriate authorities, such as law enforcement, Adult Protective Services, or your legal representative. “Guarding the Guardians” can be downloaded from NASAA’s Serve Our Seniors website here.
The Florida Office of Financial Regulation offers Floridians a robust online Consumer Knowledge Center, where you can find more information on several financial topics.
To report suspected guardian financial abuse, please contact Adult Protective Services and local law enforcement. 

Consumer Alert: Estate Planning

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Estate planning is not fun to think about and can be difficult, but it is important to have an estate plan for many reasons. An estate plan gives your loved ones a strategy to implement your exact wishes, avoids having a probate judge decide how to distribute your estate, and it keeps your heirs from having a large tax burden. The Florida Office of Financial Regulation encourages Floridians spend time getting their affairs in order to ease the burden on their loved ones.
Keep these tips in mind to help you create an estate plan:
  • Create a will and a living will. A will establishes your desired distribution of assets that are not already designated with a beneficiary or that are outside of a trust. Clearly describe your wishes and beneficiaries in the will, so that there are no questions about your desires. A living will, or advance directive, will provide guidance to your loved ones on any medical decisions they will be required to make in the event you are incapacitated.
  • Make a list of your debts. Create a detailed list of your debts, including credit cards, auto loans and mortgages. Include the amount you owe and contact information for each company. This will allow your loved ones to make arrangements to pay the debts without incurring additional penalties or fees.
  • Develop a catalog of electronic accounts and current login information. Keep all usernames and passwords for every online account you have in one place, so that your loved ones can access necessary accounts. Make sure this information is kept in a secure location.
  • Keep copies of retirement accounts and insurance policies in a central location. Be sure to note any designated beneficiary on each of your accounts, including alternate beneficiaries, as this will supersede what is noted in your will. Note any transfer on death (TOD) designations on any bank or brokerage accounts, as well, for the same reason.
Once you have your estate plan in place, regularly review and update all information, including beneficiaries. Aim to review your estate plan, including your will, every few years and after every major life event, such as marriage, divorce, relocation to another state, etc.
The Florida Office of Financial Regulation offers Floridians a robust online Consumer Knowledge Center, where you can find more information on several financial topics.

Alleged Fraudster Lured Investors with Promise of 24-Hour Miracle Cure for Addiction

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The Office of Financial Regulation (OFR) today announced that Paul Mark Tucker voluntarily surrendered to the Miami-Dade County Corrections Department on Oct. 30, 2017, following the issuance of a warrant for his arrest. Tucker is charged with seven counts of selling unregistered securities and seven counts of selling securities as an unregistered person. Additionally, he is charged with organized fraud, money laundering, grand theft and selling a fraudulent investment in connection with his purported drug and alcohol rehabilitation business.
“The OFR’s investigation shows that this alleged fraudster lured victims with ludicrous claims about a life-saving, 24-hour miracle cure for drug and alcohol addiction,” said OFR Commissioner Drew J. Breakspear. “I applaud our investigators for their continued efforts to bring this perpetrator to justice, protect Floridians, and keep Florida’s financial marketplace safe for business.”
Tucker is alleged to have promoted investments in Ibogaine Partners, a business which he advertised on multiple websites. Investors were lured with claims that the investment program saved lives through drug and alcohol detoxification, promising a 24-hour miracle cure for addiction. Tucker claimed that there were no withdrawal symptoms or lingering cravings with the program, and that it would cost patients less than $10,000 each.
Tucker is believed to have sought $1,000,000 through the sale of partnership units to investors at a price of $50,000 per unit. A review of financial records indicated Tucker spent approximately 80 percent of investors’ money on personal expenses. In total, Tucker swindled approximately $510,000 from victim investors.    
The OFR was the sole investigative agency working this case. The OFR thanks the Department of Financial Services, Division of Investigative and Forensic Services, which aided in obtaining the voluntary surrender. The Miami-Dade County State Attorney’s Office is prosecuting the case.  

Industry Alert: Cyber Security Resources for Businesses

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The month of October is recognized as Cyber Security Awareness Month, designed to raise awareness about cyber security and staying safe online. The Florida Office of Financial Regulation reminds all Florida businesses to engage in smart cyber security practices and to take steps to reduce the risk of becoming a victim of a cyber incident.
Typically, the purpose of a cyber breach is to steal or exploit information. As we have seen in recent months, large companies are targets of cyber attacks. But small businesses are not immune, potentially because they may have less security than a large company and they likely hold more digital information than an individual. Ensuring compliance with best practices for cyber security and reducing your risk is the best way to ward off a cyber threat.
If your organization is impacted by a cyber breach, make sure you understand your obligations to consumers under Florida’s Information Protection Act. The Florida Information Protection Act of 2014 was passed to better protect Floridians’ personal information by ensuring that businesses and government entities take reasonable measures to protect personal information and report data breaches to affected consumers.
Below are some resources to assist businesses in creating a cyber security policy and action plan.

  • The Federal Communications Commission offers helpful cyber security tips to protect your business, including training employees and creating back-up copies of important data.
  • The Federal Communications Commission also offers an online tool to help create a customized cyber security plan.
  • The U.S. Small Business Administration offers a free web-based course about securing information in a small business.
  • The U.S. Department of Homeland Security offers downloadable resources about protecting your privacy and staying safe online.
  • The National Cyber Security Alliance offers a framework for identifying and prioritizing online risk.

Consumer Alert: Romance Scams

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Online social platforms are everywhere, including dating websites. Unfortunately, scammers are trolling online social and dating platforms, looking to target unsuspecting victims. The Florida Office of Financial Regulation encourages Floridians to remain vigilant when navigating online social connections.
Romance scams can happen on social media networks and websites dedicated to romantic connections. Common claims by scammers, posing as online love interests, are that they would like to meet in person but cannot afford to, that they are living in another country or even that they are responsible for a sick relative. These false claims will usually lead to a request for money. If the person has a list of reasons why they cannot meet in person, especially any excuse relating to money, it may be a scam.
Below are some tips to help protect yourself from becoming a victim:
  • Remain wary of online friends who ask for money or for information about your financial situation, especially unsolicited friends.
  • Think twice before you post something on social media. Consider if the information could be used to help scam you.
  • Don’t give out location information or personal identifying information to anyone online.
  • Beware of anyone who “comes on strong,” is aggressive, or quickly asks you to move your relationship offline.
  • Be extremely cautious of any investment opportunity or business venture pitched through social media or online dating platforms. Do your homework on any opportunity before committing, and make sure that the business or individual is properly licensed.
As a real-life scenario of this type of scam, in the Orlando area from 2003 through 2013, Scott Campbell used online dating websites to target single women with an investment scam. He enticed more than 30 victims into investing in his fake musical recording and talent search business with promises of a portion of his company’s future profits. The Florida Office of Financial Regulation’s investigation revealed that Campbell spent most of the $1 million collected from his victims on gambling and personal living expenses. In February 2015, Campbell was sentenced to 20 years in prison and 10 years of probation.
If you are a victim of a romance scam, please file a complaint with the Federal Bureau of Investigation’s Internet Crime Complaint Center. If you feel that you may be a victim of investment fraud or to report suspicious activity, please file a complaint with the Florida Office of Financial Regulation online, www.flofr.com, or call (850) 487-9687.
The Florida Office of Financial Regulation offers an online Consumer Knowledge Center, where Floridians can learn more about how to spot potential scams.

Consumer Alert: Managing your finances after Hurricane Irma

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The Florida Office of Financial Regulation (OFR) encourages Floridians to take time to assess their finances following Hurricane Irma. Managing your financial obligations during this time may seem like the furthest thing from your mind; however, it is important to keep your finances in order. 
Whether you have a mortgage loan, non-mortgage loan, credit card or other expense, every Floridian experiencing financial distress as a result of Hurricane Irma should:

  • Proactively reach out to your lender to make them aware of your circumstances immediately.
  • Make sure to explain your situation in detail. Your lender may be willing to work with you.
Many of Florida’s financial services providers are proactively working with customers. Visit your lender’s website for more information. Given the volume of customers impacted by Hurricane Irma, contacting creditors may be difficult, but be persistent and make every effort to get in touch with them. The links below will help you locate and contact your financial services providers. If you are unable to find your provider’s information through these resources, please contact the OFR for assistance at (850) 487-9687 or via Twitter @FlFinancialReg.

Consumer Alert: Equifax Data Breach

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Equifax Inc., a national credit reporting bureau, has announced that a cybersecurity incident potentially compromised the personal identifying information of approximately 143 million U.S. consumers. The Equifax hack includes names, addresses, birth dates, and Social Security Numbers. The Florida Office of Financial Regulation encourages Floridians to act now to protect their personal identifying information and reduce their risk of identity theft. 
Reduce your risk of identity theft by:
  • Changing your passwords on all your accounts regularly.
  • Checking your credit report at least annually with the three national credit reporting agencies (Equifax, Experian, and TransUnion).
  • Shredding or destroying all documents with personal identifying information when you are finished with them.
  • Never verifying or giving personal identifying information over the phone or through email, especially if the contact was unsolicited.
  • Request fraud alerts on your accounts and your credit report. 
Keep the “Three C’s” in mind if you think you may be a victim of identity theft:
  • Check: Watch for suspicious or unauthorized transactions on your financial, professional and personal accounts. Contact the sender immediately if financial statements or bills do not arrive on time.
  • Contact: File a report with the Federal Trade Commission, the FBI’s Internet Crime Complaint Center and local law enforcement. Contact your financial institutions to alert them, and to replace your debit and credit cards. Request a freeze of your credit reports from the three national credit reporting agencies (Equifax, Experian, and TransUnion).
  • Collect: Collect all evidence that you may have to support your claim. This could be cancelled checks, credit card receipts, unusual email messages, etc. 
Equifax has established a website for consumers to find out if they may have been impacted by the data breach. 
The Florida Office of Financial Regulation offers an online Consumer Knowledge Center, where Floridians can learn more about a variety of financial literacy topics, including how to protect themselves from identity theft.

OFR Provides Guidance to Florida Financial Institutions in Preparation for Hurricane Irma

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Florida’s financial services providers stand ready to work with Floridians to meet their financial needs. The Office of Financial Regulation (OFR) has issued a proclamation providing guidance to Florida’s financial institutions in areas where the major impacts of Hurricane Irma are expected. 
Floridians preparing for Hurricane Irma should:
  • Monitor weather reports and follow the direction of local officials
  • Double-check your emergency supplies
  • Fill up your vehicles with gas
  • Make sure you have enough cash on hand to last for several days
The OFR is continuing to work with the Federal Reserve Bank, the Federal Deposit Insurance Corporation, and the National Credit Union Administration, to communicate the latest developments and information regarding Hurricane Irma. State and federal agencies will continue to monitor the impact of the storm on the financial services industry in Florida, and information will be available at www.flofr.com regarding financial services availability and areas impacted throughout the state.