ISRAELS & NEUMAN, PLC – Utah Securities Attorneys
Section 61 of the Utah Uniform Securities Act
Israels & Neuman are securities arbitration and investment fraud attorneys that represent Utah residents who have been wronged by their stockbrokers and brokerage firms. Our attorneys have previously represented a number of Utah residents who were victims of the Dee Randall/Horizon Ponzi Scheme, as well as other Utah investors.
Utah residents are protected by the provisions of the Utah Uniform Securities Act. This Act provides for the regulation of the sale of securities to Utah residents and to Utah financial advisors and stockbrokers. Additionally, the Utah Division of Securities, with offices in Salt Lake City, was created to help enforce the provisions of the Utah Uniform Securities Act.
Section 61 of the Utah Uniform 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:
It is unlawful for any person, in connection with the offer, sale, or purchase of any security, directly or indirectly to:
(1) employ any device, scheme, or artifice to defraud;
(2) 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
(3) engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.
See Utah Code § 61-1-1. The Utah Uniform Securities Act further provides civil remedies in the event that the Act is violated:
(1) (a) This Subsection (1) applies to a person who:
(i) offers or sells a security in violation of:
(A) Subsection 61-1-3(1);
(B) Section 61-1-7;
(C) Subsection 61-1-17(2);
(D) a rule or order under Section 61-1-15, which requires the affirmative approval of sales literature before it is used; or
(E) a condition imposed under Subsection 61-1-10(4) or 61-1-11(7); or
(ii) offers, sells, or purchases a security in violation of Subsection 61-1-1(2).
(b) A person described in Subsection (1)(a) is liable to a person selling the security to or buying the security from the person described in Subsection (1)(a). The person to whom the person described in Subsection (1)(a) is liable may sue either at law or in equity to recover the consideration paid for the security, together with interest at 12% per year from the date of payment, costs, and reasonable attorney fees, less the amount of income received on the security, upon the tender of the security or for damages if the person no longer owns the security.
See Utah Code § 61-1-22.
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 and the Seattle area. We represent investors in FINRA arbitration and securities arbitration proceedings in all 50 states, including representing investors previously throughout Utah, and in Salt Lake City, Provo, West Valley City, West Jordan, Orem, Sandy, Ogden, and St. George. Our securities attorneys have represented over one thousand investors against many brokerage firms in the past, including LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, Stifel Nicolaus & Company, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Ameriprise Financial Services, Raymond James, ProEquities, Securities America, National Securities Corp., and many others.
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If you are a resident of Utah 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.