ISRAELS & NEUMAN – NEW MEXICO SECURITIES ATTORNEYS
Israels & Neuman, PLC – New Mexico Securities Attorneys
Article 5 of the New Mexico Uniform Securities Act
New Mexico residents are protected by the provisions of the New Mexico Uniform Securities Act. This Act provides for the regulation of the sale of securities to New Mexico residents and to New Mexico financial advisors and stockbrokers. Additionally, the New Mexico Securities Division, with offices in Santa Fe and Albuquerque, was created to help enforce the provisions of the New Mexico Uniform Securities Act.
Article 5 of the New Mexico 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 a person, in connection with the offer, sale or purchase of a security, directly or indirectly:
- 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 statement made, in the light of the circumstances pursuant to which it is made, not misleading; or
3. to engage in an act, practice or course of business that operates or would operate as a fraud or deceit upon another person.
See N.M. 58-13C-501. The New Mexico Uniform Securities Act further provides civil remedies in the event that the Act is violated:
- A person is liable to the purchaser if the person sells a security in violation of Section 301 [58-13C-301 NMSA 1978] of the New Mexico Uniform Securities Act 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 pursuant to 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 pursuant to 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 legal rate of interest from the date of the purchase, costs and reasonable attorney fees determined by the court, upon the tender of the security, or for actual damages as provided in Paragraph (3) of this subsection;
(2) the tender referred to in Paragraph (1) of this subsection 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 Paragraph (3) of this subsection; and
(3) actual damages in an action arising pursuant to 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 legal rate of interest from the date of the purchase, costs and reasonable attorney fees determined by the court.
See N.M. 58-13C-509(B).
If your financial advisor 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 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 investors throughout New Mexico, and in Albuquerque, Santa Fe, Las Cruces, Rio Rancho, Roswell, and Farmington. Our 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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