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Preventing Fraudulent and Misleading Investment Practices

WHEREAS:

            In recent years, millions of Americans have lost substantial sums of money due to inadequate and misleading information concerning stock trading, securities and other investments. Also, sham investment clubs have been set up and operate like Ponzi schemes. The majority of investors not only do not make money, they lose all the money they have invested. Average and small investors are not immune and can lose their life savings, 401(k)s or IRAs as a result of these criminal and unscrupulous enterprises by brokers, agents, and con artists, of which Bernard Madoff is one of the best well known; and

WHEREAS:

            The Securities and Exchange Commission (SEC) already has rules and regulations against misleading information as to the value of investments and fraudulent investments. However, the SEC is not fully funded to adequately enforce these rules and regulations.

THEREFORE BE IT RESOLVED:

            That AFSCME will support and lobby Congress to pass legislation to require accurate statements of financial valuation of investments, and to allow recovery of damages for small investors who have lost money due to investment schemes by unscrupulous investment plan operators.

 

SUBMITTED BY:
Juan Fernandez, President and Delegate
Egbert Isaacs, Vice President and Delegate
Sheera S. Glass, Secretary and Delegate
Thomas Orawiec, Treasurer and Delegate
Diana Thillet, Executive Board Member and Delegate
Juliet White, Executive Board Member
Alan Mendelson, Executive Board Member
AFSCME Local 154, District Council 37
New York

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