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ISRAELS & NEUMAN, PLC – Maine Securities Attorneys

ISRAELS & NEUMAN, PLC – Maine Securities Attorneys

Sections 16501 and 16509 of the

Maine Uniform Securities Act.

Israels & Neuman are securities arbitration and investment fraud attorneys that represent Maine residents who have been wronged by their stockbrokers and brokerage firms.  Our investment fraud attorneys have previously represented investors in Maine, including investors from Deer Isle, Maine who lost money in the Oppenheimer Champion Income Fund.

The residents of Maine are protected by the provisions of the Maine Uniform Securities Act.  This Act provides for the regulation of the sale of securities to Maine residents and to Maine financial advisors and stockbrokers.  Additionally, the Maine Office of Securities, with offices in Augusta and Gardiner, was created to help enforce the provisions of the Maine Uniform Securities Act.

Section 16501 of the Maine 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. Device, scheme, artifice. To employ a device, scheme or artifice to defraud;
  2. Untrue statement of or omission of material fact. 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; or
  3. Fraud, deceit. To engage in an act, practice or course of business that operates or would operate as a fraud or deceit upon another person.

See Me. Stat. tit. 32, § 16501.  The Maine Uniform Securities Act further provides civil remedies in the event that the Act is violated:

Liability of seller to purchaser.  A person is liable to the purchaser if the person sells a security in violation of section 16301; section 16303, subsection 6; section 16304, subsection 5; or section 16305, subsection 6 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 of 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:

A.  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 the interest at the legal rate of interest from the date of the purchase, costs and reasonable attorney’s fees determined by the court, upon the tender of the security, or for actual damages as provided in paragraph C.

B.  The tender referred to in paragraph A 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 C.

C.  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 the interest at the legal rate of interest from the date of the purchase, costs and reasonable attorney’s fees determined by the court.

See Me. Stat. tit. 32, § 16509.

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 Maine, and in Augusta, Gardiner, Deer Isle, Bangor, Portland, Lewiston, South Portland, Biddeford, Scarborough, Saco, Gorham, York, and others. Our securities attorneys have represented over one thousand investors against many brokerage firms in the past.

Click to view:  Maine Uniform Securities Act Civil Liability

Click to view:  Maine Uniform Securities Act Anti-Fraud Provisions

If you are a resident of Maine and have lost money with your financial advisor or investment advisor, please CONTACT ISRAELS & NEUMAN at 206-795-5798 for a free evaluation of your case.

 

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