ISRAELS & NEUMAN, PLC – Tennessee Securities Attorneys
Sections 121 and 122 of the Tennessee Securities Act
Israels & Neuman are investment fraud and securities arbitration attorneys that represent Tennessee residents who have been wronged by their stockbrokers and brokerage firms. Our investment fraud attorneys have previously represented investors in Tennessee, including former teachers from Shelby County who lost money with former advisor Jerry Chancy in Global Wealth Creations (also known as Global Wealth Investments); several investors from the Memphis and Nashville areas who had substantial losses in the Morgan Keegan bond funds; and investors from Collierville who lost money in a Ponzi scheme.
The residents of Tennessee are protected by the provisions of the Tennessee Securities Act. This Act provides for the regulation of the sale of securities to Tennessee residents and to Tennessee financial advisors and stockbrokers. Additionally, the Tennessee Securities Division, with offices in Nashville, was created to help enforce the provisions of the Tennessee Securities Act.
Tennessee Securities Act Section 121 provides for liability if a financial advisor or investment advisor misrepresents the risks of an investment to you. In particular, this statute provides that:
48-1-121. Fraudulent acts or devices.
(a) It is unlawful for any person, in connection with the offer, sale or purchase of any security in this state, directly or indirectly, to:
(1) Employ any device, scheme, or artifice to defraud;
(2) Make any untrue statement of a material fact or 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
(3) Engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.
See Tenn. Code § 48-1-121. Section 122 of the Tennessee Securities Act further provides civil remedies in the event that the Act is violated:
48-1-122. Civil liabilities.
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(b) (1) Any person who purchases a security in violation of § 48-1-121(a) (the seller not knowing of the violation of § 48-1-121(a), and who does not carry the burden of proof of showing that the purchaser did not know and in the exercise of reasonable care could not have known of the violation of § 48-1-121(a)) shall be liable to the person selling the security to the purchaser to return the security, plus any income received by the purchaser thereon, upon tender of the consideration received, or, if the purchaser no longer owns the security, the excess of the value of the security when the purchaser no longer owns the security, the excess of the value of the security when the purchaser disposed of it, plus interest at the legal rate from the date of disposition, over the consideration paid for the security.
See Tenn. Code § 48-1-122(b).
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 Denver, Colorado; Bellevue, Washington; Chicago, Illinois; and Ann Arbor, Michigan. We represent investors in FINRA arbitrationand securities arbitration proceedings in all 50 states, including representing investors previously throughout Tennessee, and in Nashville, Memphis, Knoxville, Chattanooga, Clarksville, Murfreesboro, Jackson, Johnson City, Bartlett, Kingsport, Collierville, Smyrna, and others. Our securities attorneys have represented over one thousand investors against many brokerage firms in the past.
If you are a resident of Tennessee and have lost money with your financial advisor or investment advisor, please CONTACT ISRAELS & NEUMAN at 720-599-3505 for a Free evaluation of your case.