ISRAELS & NEUMAN, PLC – Louisiana Securities Attorneys
Section 712 of the Louisiana Securities Law.
Israels & Neuman are securities arbitration and investment fraud attorneys that represent Louisiana residents who have been wronged by their stockbrokers and brokerage firms. Our investment fraud attorneys have previously represented investors in Louisiana, including several investors who had substantial losses in the Morgan Keegan bond funds.
The residents of Louisiana are protected by the provisions of the Louisiana Securities Law. This Act provides for the regulation of the sale of securities to Louisiana residents and to Louisiana financial advisors and stockbrokers. Additionally, the Louisiana Securities Division, with offices in Baton Rouge, was created to help enforce the provisions of the Louisiana Securities Law.
Louisiana Securities Act Section 712 provides for liability if a financial advisor or investment advisor misrepresents the risks of an investment to you. In particular, this statute provides that:
Unlawful practices
- It shall be unlawful for any person:
(1) To offer to sell or to sell any security in violation of R.S. 51:703, 705, or any rule, regulation or order promulgated or issued by the commissioner under this Part.
(2) To offer to sell or to sell a security by means of any oral or written 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, the buyer not knowing of the untruth or omission, if such person in the exercise of reasonable care could not have known of the untruth or omission.
(3) To offer or sell any security:
(a) Registered under R.S. 51:705(B) by means of any prospectus except a prospectus which complies with R.S. 51:705(B)(3).
(b) Registered under R.S. 51:705(E) by means of any prospectus except a prospectus which complies with R.S. 51:705(E)(3).
(c) Registered under R.S. 51:705(F) by means of any prospectus except a prospectus which complies with R.S. 51:705(F)(4).
See La. Stat. Ann. § 51:712. The Louisiana Securities Law further provides civil remedies in the event that the Act is violated:
Civil liability from sales of securities
- Any person who violates R.S. 51:712(A) shall be liable to the person buying such security, and such buyer may sue in any court to recover the consideration paid in cash or, if such consideration was not paid in cash, the fair value thereof at the time such consideration was paid for the security with interest thereon from the date of payment down to the date of repayment as computed in R.S. 51:714(C)(1), less the amount of any income received thereon, together with all taxable court costs and reasonable attorney’s fees, upon the tender, where practicable, of the security at any time before the entry of judgment, or for damages if he no longer owns the security. Damages are the amount which equals the difference between the fair value of the consideration the buyer gave for the security and the fair value of the security at the time the buyer disposed of it, plus interest thereon from the date of payment to the date of repayment as computed in R.S. 51:714(C)(2).
See La. Stat. Ann. § 51:714(a).
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 Louisiana, and in New Orleans, Baton Rouge, Shreveport, Lafayette, Lake Charles, Metairie, Kenner, Bossier City, Slidell, Alexandria, Houma, and others. Our securities attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Louisiana Securities Law Civil Liability
Click to view: Louisiana Securities Law Anti-Fraud Provisions
If you are a resident of Louisiana 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.