ISRAELS & NEUMAN, PLC – Mississippi Securities Attorneys
Sections 501 and 509 of the Mississippi Securities Act.
Israels & Neuman, PLC are investment fraud and securities arbitration attorneys that represent Mississippi residents and investors who have been wronged by their stockbrokers and brokerage firms. Our investment fraud attorneys have previously represented investors in Mississippi, including several investors who had substantial losses in the Morgan Keegan bond funds.
The residents of Mississippi are protected by the provisions of the Mississippi Securities Act. This Act provides for the regulation of the sale of securities to Mississippi investors and to Mississippi financial advisors and stockbrokers. Moreover, the Mississippi Securities Division, with offices in Jackson, was created to help enforce the provisions of the Mississippi Securities Act.
Section 501 of the Mississippi Securities Act provides for liability if a financial advisor or investment advisor misrepresents the risks of an investment to you. In particular, this statute provides that:
- 75-71-501 General Fraud.
It is unlawful for a person, in connection with the offer, sale, or purchase of a security, directly or indirectly:
(1) To employ a device, scheme, or artifice to defraud;
(2) To make an 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 were made, not misleading; or
(3) To engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.
See Miss. Code § 75-71-501. Section 509 of the Mississippi Securities Act further provides civil remedies in the event that the Act is violated:
- 75-71-509. Civil liability.
* * *
(b) Liability of seller to purchaser. A person is liable to the purchaser if the person sells a security in violation of Section 75-71-301 or, by means of an untrue statement of a material fact or an omission to state a material fact necessary in order to make the statement made, in light of the circumstances under which it is made, not misleading, the purchaser not knowing the untruth or omission and the seller not sustaining the burden of proof that the seller did not know and, in the exercise of reasonable care, could not have known of the untruth or omission. An action under this subsection is governed by the following:
(1) The purchaser may maintain an action to recover the consideration paid for the security, less the amount of any income received on the security, and interest at the legal rate of interest from the date of the purchase, costs, and reasonable attorney’s fees determined by the court, upon the tender of the security, or for actual damages as provided in paragraph (3).
(2) The tender referred to in paragraph (1) may be made any time before entry of judgment. Tender requires only notice in a record of ownership of the security and willingness to exchange the security for the amount specified. A purchaser that no longer owns the security may recover actual damages as provided in paragraph (3).
(3) Actual damages in an action arising under this subsection (b) are the amount that would be recoverable upon a tender less the value of the security when the purchaser disposed of it, and interest at the legal rate of interest from the date of the purchase, costs, and reasonable attorney’s fees determined by the court.
See Miss. Code § 75-71-509.
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 Mississippi, and in Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Tupelo, Olive Branch, Pearl, Clinton, Ridgeland, Vicksburg, Natchez, and others. Our securities attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Mississippi Securities Act
If you are a resident of Mississippi 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.