ISRAELS & NEUMAN, PLC – Kentucky Securities Attorneys

Chapter 292 of the Securities Act of Kentucky

Israels & Neuman are securities arbitration and investment fraud attorneys that represent Kentucky residents who have been wronged by their stockbrokers and brokerage firms.  We have represented numerous investors in Kentucky, including investors from the Louisville-area who lost money investing in unsuitable variable annuities.   We have also represented investors who lost money investing in a private company that was recommended by an advisor in Bowling Green.

The residents of Kentucky are protected by the provisions of the Securities Act of Kentucky.  This Act provides for the regulation of the sale of securities to Kentucky residents and to Kentucky financial advisors and stockbrokers.  Additionally, the Kentucky Securities Division, with offices in Frankfort, was created to help enforce the provisions of the Securities Act of Kentucky.

Chapter 292.320 provides for liability if a financial advisor or investment advisor misrepresents the risks of an investment to you.  In particular, this statute provides that:

292.320 Fraudulent and other prohibited practices.

(1) It is unlawful for any person, in connection with the offer, sale, or purchase of any

security, directly or indirectly:

(a) To employ any device, scheme, or artifice to defraud;

(b) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading; or

(c) To engage in any act, practice, or course of business which operates or would

operate as a fraud or deceit upon any person.

See KRS § 292.320.  The Securities Act of Kentucky further provides civil remedies in the event that the Act is violated:

292.480 Civil liabilities.

(1) Any person, who offers or sells a security in violation of this chapter or of any rules or orders promulgated hereunder or offers or sells a security by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made in the light of the circumstances under which they are made not misleading, and who does not sustain the burden of proof that he did not know and in the exercise of reasonable care could not have known of the untruth or omission is liable to the person buying the security from him, who may sue either at law or in equity to recover the consideration paid for the security, together with interest at the legal rate from the date of payment costs and reasonable attorneys’ fees, less the amount of any income received on the security, upon the tender of the security, or for damages if he no longer owns the security. Damages are the amount that would be recoverable upon a tender less:

(a) The value of the security when the buyer is disposed of it; and

(b) Interest at the legal rate per annum from the date of disposition.

See KRS § 292.480.

If your financial advisor or stockbroker makes misrepresentations to you when selling securities, he or she may be liable for your losses.  In addition, the brokerage firm that your advisor works for may also be liable.

Israels & Neuman PLC is a securities arbitration and investment fraud law firm with offices in Colorado, Washington, the Portland Oregon Area, and Michigan.  We represent investors in FINRA arbitration and securities arbitration proceedings in all 50 states, including representing investors previously throughout Kentucky, and in Louisville, Lexington, Frankfort, Bowling Green, Owensboro, Covington, Hopkinsville, Elizabethtown, Henderson, and others. Our securities attorneys have represented over one thousand investors against many brokerage firms in the past.

Click to view:  Securities Act of Kentucky Civil Remedies

Click to view:  Securities Act of Kentucky Anti Fraud Provisions

If you are a resident of Kentucky and have lost money with your financial advisor or investment advisor, please CONTACT ISRAELS & NEUMAN  at 720-599-3505 or 206-795-5798 for a free evaluation of your case.