ISRAELS & NEUMAN, PLC – North Carolina Securities Arbitration and Investment Fraud Attorneys
Sections 78A-8 and 78A-56 of the North Carolina Securities Act
Have you lost money with a financial advisor in North Carolina? Israels & Neuman are securities arbitration and investment fraud attorneys that represent North Carolina residents who have been wronged by their stockbrokers and brokerage firms. We have previously invested investors throughout North Carolina, including an investor from Charlotte who lost money investing in iPractice, as well as investors who lost money in the Morgan Keegan bond funds.
North Carolina residents are protected by the provisions of the North Carolina Securities Act. This Act provides for the regulation of the sale of securities to North Carolina residents and to North Carolina financial advisors and stockbrokers. Additionally, the North Carolina Securities Division, with offices in Raleigh, was created to help enforce the provisions of the North Carolina Securities Act.
Section 78A-8 of the North Carolina Securities Act provides for liability if a financial advisor, stockbroker, 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:
(1) To employ any device, scheme, or artifice to defraud,
(2) To 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) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.
See N.C. Gen. Stat. § 78A-8. The North Carolina Securities Law further provides civil remedies in the event that the Act is violated:
- Any person who:
(1) Offers or sells a security in violation of G.S. 78A-8(1), 78A-8(3), 78A-10(b), 78A-13, 78A-14, 78A-24, or 78A-36(a), or of any rule or order under G.S. 78A-49(d) which requires the affirmative approval of sales literature before it is used, or of any condition imposed under G.S. 78A-27(d) or 78A-28(g), or
(2) Offers or sells a security by means of any 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 were made, not misleading (the purchaser not knowing of the untruth or omission), and who does not sustain the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of the untruth or omission, is liable to the person purchasing the security from him, who may sue either at law or in equity to recover the consideration paid for the security, together with interest at the legal rate from the date of payment, costs, and reasonable attorneys’ fees, less the amount of any income received on the security, upon the tender of the security, or for damages if the purchaser no longer owns the security. Damages 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 as provided by G.S. 24-1 from the date of disposition.
See N.C. Gen. Stat. 78A-56(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; Ann Arbor, Michigan; and the Seattle area. We represent investors in FINRA arbitration and securities arbitration proceedings in all 50 states, including representing investors previously throughout North Carolina, and in Charlotte, Raleigh, Durham, Cary, Asheville, Greensboro, Winston-Salem, Fayetteville, Wilmington, High Point, Chapel Hill, Rocky Mount, Gastonia, Goldsboro, and others. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: North Carolina Securities Act
IF YOU ARE A RESIDENT OF NORTH CAROLINA 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.