The North American Securities Administrators Association said that it has uncovered what appears to be a “phantom regulator” website that aimed to dupe investors.

NASAA reports that the “State Securities Commission” website has misappropriated NASAA content and appears to have been created “for an unlawful purpose”. It says that the website (www.statesec.org), which appears to have been launched on October 24, and has now been deactivated, joins a long list of similar sites designed to dupe investors.

“Several fake regulator websites have been brought to the attention of state and federal securities regulators in recent years,” said Jack Herstein, NASAA president and assistant director of the Nebraska Department of Banking & Finance Bureau of Securities. “Many of these sites purport of offer relief to investors. In reality, they are fronts for con artists posing as regulators.”

He also noted that the questionable site contains elements from the NASAA website and other securities-related sites, including that of the Securities Investor Protection Corp. For example, the site includes slightly modified versions of recent NASAA news releases and investor alerts and claims that its membership consists of “the securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada and Mexico.”

NASAA also says the website purports to make a claim form available for investors with broker-dealers in liquidation, and it asks investors submitting a claim to include a copy of their most recent brokerage account statement, along with copies of confirmation slips for securities transactions, correspondence and other documentation. Some investors also are asked to include a cheque with their completed forms.

“Requests to submit personal account information and money to a ‘regulator’ are red flags of investment fraud,” Herstein said.

He added no legitimate state or provincial securities regulatory agency is affiliated with the State Securities Commission website. “We are concerned that con artists are attempting to cash in on our reputation for effective investor protection to lure others into an illicit scheme,” he said.