To the Editor:
I want to thank you for your August “From the Editor” column. As the former head of enforcement for the Ohio Division of Securities, it was my responsibility to enforce and monitor the issuance and sale of securities throughout the state in order to ensure compliance with the Ohio Securities Act.
I regularly saw the abuse of investors’ money and trust, often resulting in stiff penalties to those violating the law.
With events impacting consumer confidence continuing to unfold on a daily basis, I agree that now, perhaps more than ever, it is of critical importance that members of the financial community be vigilant in complying with state and federal securities regulations.
The Division of Securities has been engaged in an ongoing effort to audit each and every investment adviser it licenses. This is no small task given that there are more than 400 investment advisers licensed by the division, and its efforts are to be applauded. Unfortunately, the majority of those audits have uncovered some level of compliance deficiency.
Most are good people trying to earn an honest living. What many don’t realize is that failure to comply, whether intentionally or not, can result in the loss or suspension of their license to practice. It seems clear that both the industry and investors need more education and information to ensure a safe and fair marketplace for everyone.
I left the division in July to join the securities practice at Kohrman Jackson & Krantz in Cleveland. Although no longer with the division, my goals remain the same — to help keep licensees within the law and to protect people hurt by those failing to do so.
Matthew Fornshell
Partner
Kohrman Jackson & Krantz PLL
Cleveland
