The Commissioner’s Office is charged with administration and enforcement of the Kansas Securities Act and the Kansas Loan Brokers Act. As defined by statute, a "security" includes virtually any type of passive investment, not just stocks and bonds. Companies and individuals offering securities are subject to certain ethical and industry standards and must abide by federal and state laws and regulations.

The Office investigates and prosecutes exclusively "white collar" crime, including securities fraud, the offer or sale of unregistered securities and the offer or sale of securities by unlicensed stockbrokers or investment advisers. We have the authority to investigate investment activities originating both inside and outside of Kansas, whether concerning registered or unregistered persons or entities and may examine the books and records of any registrant at any time.

We have a law enforcement staff specially trained in securities and financial crimes. Our investigators receive many referrals from city, county, state and federal law enforcement agencies. They frequently work in conjunction with investigators from other states, and they are able to draw upon the resources of the National White Collar Crime Center ("NWCCC").

The compliance staff handles investor complaints about the regulated side of the securities industry, as well as licensing new applicants and ensuring continued compliance with securities laws by conducting periodic field examinations of Kansas sales offices.

We also maintain a legal staff that prosecutes administrative, civil and criminal violations of the securities laws in state and federal court. Kansas is one of only a handful of state securities offices or bureaus in the nation that prosecutes criminal matters on an in-house basis. Our attorneys serve as special assistants attorney general, and one has been cross-designated as a Special Assistant United States Attorney.

All securities crimes are felonies, with presumptive imprisonment for cases involving losses of $25,000 or more. We frequently prosecute theft and other felonies in conjunction with the securities crimes. The Commissioner is also authorized by statute to seek asset freezes and injunctive relief through civil remedies. This provides immediate protection of existing assets of a target that can be used to compensate victims.

Securities fraud is a serious crime and we are committed to protecting Kansas investors and informing the public of the services we provide. Frequently, it is through inquiries and complaints from individuals that serious violations of Kansas securities laws and regulations are detected. Listed below are some examples of issues individual investors inquire about:

Please, investigate before you invest. Contact the Office of the Securities Commissioner to verify that investment products you are considering have been registered for sale in Kansas and that the salesperson is licensed to sell securities. This is a free service. One phone call could protect your nest egg from being destroyed by an unscrupulous investment promoter.

Reporting Problems with Investments

Typically, market losses on an investment are not grounds for a complaint. The majority of financial professionals are reputable but mistakes can happen. If you notice errors in your investment transactions, you should take these steps:

Please note that our agency cannot act as a private attorney for investors. You may also wish to contact the Financial Industry Regulatory Authority (FINRA), the American Arbitration Association or the Public Investors Arbitration Bar Association for assistance.