Idaho Securities Attorneys – Section 501 of the Idaho Uniform Securities Act.
Israels & Neuman are securities arbitration and investment fraud attorneys that represent Idaho residents who have been wronged by their stockbrokers and brokerage firms. Our investment fraud attorneys have previously represented a number of Boise area investors who lost money in a fraudulent scheme.
Idaho residents are protected by the provisions of the Idaho Uniform Securities Act. This Act provides for the regulation of the sale of securities to Idaho residents and to Idaho financial advisors and stockbrokers. Additionally, the Idaho Securities Bureau, with offices in Boise, was created to help enforce the provisions of the Idaho Uniform Securities Act.
Idaho Code Section 30-14-501 of the Idaho 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:
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 light of the circumstances under which they were made, not misleading;
(3) To engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person; or
(4) To divert investor money to the personal use of the issuer, offeror or seller, or to pay prior investors without specifically disclosing that use before receiving the investor’s money.
See Idaho Code Ann. § 30-14-501. The Idaho Uniform Securities Act further provides civil remedies in the event that the Act is violated:
(b) Liability of seller to purchaser. A person is liable to the purchaser if the person sells a security in violation of section 30-14-301, Idaho Code, 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 annual rate of interest set forth in section 28-22-104(2), Idaho Code, from the date of the purchase, costs, and reasonable attorneys’ fees determined by the court, upon the tender of the security, or for actual damages as provided in subsection (b)(3) of this section.
(2) The tender referred to in subsection (b)(1) of this section 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 subsection (b)(3) of this section.
(3) Actual damages in an action arising under this subsection 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 annual rate of interest set forth in section 28-22-104(2), Idaho Code, from the date of the purchase, costs, and reasonable attorneys’ fees determined by the court.
See Idaho Code Ann. § 30-14-509(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 and the Seattle area. We represent investors in FINRA arbitration and securities arbitration proceedings in all 50 states, including representing investors previously throughout Idaho, and in Boise, Meridian, Nampa, Idaho Falls, Pocatello, Coeur d’Alene, Caldwell, Twin Falls, and Sandpoint. 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.