Hurricane Katrina and Hurricane Rita - Information for Investors

Hurricane Katrina and Hurricane Rita have affected many thousands of people who are now coping with their aftermath and the challenges that come with these unprecedented natural disasters. To help individuals and families regain order in their lives and avoid investor-related problems, NASD (the predecessor of FINRA) developed  this page to provide information and resources to assist investors affected by hurricanes Rita and Katrina.

 

Obtaining Contact Information for Securities Firms and Investment Advisers Displaced by Hurricanes

 

  • As a first step, investors should visit their brokerage firm's Web site to obtain hurricane-related contact information and other hurricane-related information. We advised brokerage firms to place a notice on their Web sites that indicates customer contact information regarding their accounts, access to funds or securities, and other information related to disruptions caused by Hurricanes Katrina and Rita.

  • In the event you cannot reach your firm online or by phone, you may contact one of three offices listed below for assistance in locating your firm

    • Dallas District Office (972) 701-8554
    • Florida District Office (561) 443-800
    • Atlanta District Office (404) 239-6100

      Investors should call the Dallas office for Rita-related relocation information.

  • The SEC is maintaining a Web page of alternative contact information of Investment Advisers located in areas affected by Hurricane Katrina.

Receiving Customer Checks and Other Brokerage Firm Communications

 

We asked firms to determine the dollar amount of any customer checks or securities held at affected business offices that cannot be located or accounted for and to devise interim solutions for getting dividend, interest and similar cash payments to customers. Use the resources cited above to contact your brokerage firm if you have concerns about receipt of brokerage communications.

 

Customers in areas with disrupted or suspended service should refer to the U.S. postal Web site for further information, including how to file a change of address form if you are displaced.

 

Katrina-Related Margin Extensions

 

Firms will be evaluating requests for margin extensions on a case-by-case basis for customers located in regions affected by the hurricane. See our Margin Information page for general margin information.

 

Katrina-Related Stock Scams

 

Financial fraud routinely follows on the heels of disaster. Hurricane Katrina is no exception. We issued an Investor Alert warning that unsolicited fax and email investment scams may come your way touting stocks with the promise of huge gains in the wake of Katrina.

 

If you receive a hurricane-related stock spam or junk email, forward to spam@finra.org.  If you receive a fax that looks like a hurrican-related stock scam, fax it to: (202) 833-3160.

 

Guarding Against Identify Theft

 

With financial records and personal identification washed out of countless homes and offices, Katrina gave identity thieves potential access to a tremendous amount of valuable information.  As lives are rebuilt, take special care to avoid becoming the victim of identity theft.

 

We issued two Investor Alerts with helpful tips on how to protect against identity theft.

 

In addition:

 

  • Do your best to verify the identification and/or organizational affiliation of anyone asking you information, especially if you are asked to provide social security numbers or financial account information. Government officials will not ask you for money in advance or in exchange for your information or the promise of a check.

  • Check your credit report to look for signs of post-hurricane foul play. You may be able to obtain free annual credit reports from these three credit bureaus online at www.annualcreditreport.com or by calling (877) 322-8228. You can also obtain a copy of your credit report from each of the three major credit bureaus, but you may have to pay for them.

Equifax
(800) 685-1111
www.equifax.com		 Experian
(888) 397-3742
www.experian.com		 Trans Union
(800) 888-4213
www.transunion.com

 

Reviewing Your Account Statements

 

The increased threat of identity theft and damage or disruption to brokerage and clearing firm offices and services located in a hurricane's path make it all the more important for investors to check their account statements. Contact your brokerage firm promptly if you have questions or concerns about your statement.

 

  • Verify the activity in your account, paying special attention to trades or cash transfers occurring around the timeframe of a hurricane.

  • Review your account holdings to see that all securities and cash positions and any debits or credits are accurately reflected.

  • Confirm basic account information. Check that any address changes are accurate. Are there charges or fees you don't understand?

Investors Involved in Arbitration or Mediation Hearings in Katrina-Affected Areas

 

FINRA Dispute Resolution previously stayed through September 30, 2005 all hearings and other deadlines for cases scheduled to take place in its New Orleans hearing location.  Further stays will be handled on a case by case basis. In addition, requests for stays in cases affected by Katrina but not located in the New Orleans hearing location will be handled on a case-by case basis based upon a demonstration of need.  All inquiries should be directed to Rose Schindler, Director, or Jill Wile, Deputy Director, of our Boca Raton office. They can be reached at (561) 416-0277 or by email.

 

Replacing Lost Financial Records

 

As with personal identification, it may be necessary to contact multiple organizations to replace financial records that have been lost as a result of hurricane destruction.

 

  • Contact your brokerage firm to obtain copies of lost documentation. They are required to keep records going back six years.

  • If stock certificates are lost or damaged, the best place to start your recovery effort is with your brokerage firm, which may in turn direct you to a transfer agent or the corporation that issued the stock certificate. The SEC's Web page Stock Certificates, Lost, Stolen includes information on how to replace missing stock certificates.

  • Contact the Internal Revenue Service—or your state tax hotline—for copies of your tax records and filings for the past three years.

Replacing Lost Personal Identification

 

It may be necessary to contact multiple organizations to replace personal identification including driver's licenses; birth, marriage, or death certificates; federal civilian personnel records; military service records; passports; driver's licenses, Medicare cards; and social security cards.

 

The Federal Government maintains a Replacing Your Vital Documents page, which has been updated to include Katrina-related information for some documents and affected areas.

 

Katrina-Related Banking Information

 

The FDIC has created a Web page that contains valuable consumer banking and credit information including:

 

The Treasury Department's Bureau of Public Debt offers Katrina-related Savings Bond Information.

 

Federal Taxes and Hurricane Katrina

 

The IRS has provided tax relief for affected taxpayers by extending deadlines for filing tax returns and paying taxes. For questions about tax issues, please contact the IRS hotline at (866) 562-5227 or go to www.IRS.gov.

 

State Taxes and Hurricane Katrina

 

For information on state tax issues related to the hurricane, contact:

 

Additional Resources

 

Treasury Department's Weathering the Storm: Financial Tips and Resources for Hurricane Recovery. Also available in Spanish.