ISRAELS & NEUMAN, PLC – Alabama Securities Attorneys
Sections 17 and 19 of the Alabama Securities Act.
Israels & Neuman are investment fraud and securities arbitration attorneys that represent Alabama residents who have been wronged by their stockbrokers and brokerage firms. Our investment fraud attorneys have previously represented investors in Alabama, including several investors who had substantial losses in the Morgan Keegan bond funds, as well as the Schwab YieldPlus bond fund.
The residents of Alabama are protected by the provisions of the Alabama Securities Act. This Act provides for the regulation of the sale of securities to Alabama residents and to Alabama financial advisors and stockbrokers. Additionally, the Alabama Securities Commission, with offices in Montgomery, was created to help enforce the provisions of the Alabama Securities Act.
Alabama Securities Act Section 17 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 any person, in connection with the offer, sale, or purchase of any security, directly or indirectly, to:
(1) Employ any device, scheme, or artifice to defraud;
(2) 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) Engage in any act, practice or course of business which operates or would operate as a fraud or deceit upon any person
See Ala. Code § 8-6-17(a). The Alabama Securities Act further provides civil remedies in the event that the Act is violated:
Any person who:
(1) Sells or offers to sell a security in violation of any provision of this article or of any rule or order imposed under this article or of any condition imposed under this article, or
(2) Sells or offers to sell 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 are made, not misleading, the buyer 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 buying the security from him who may bring an action to recover the consideration paid for the security, together with interest at six percent per year from the date of payment, court 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 he no longer owns the security. Damages are the amount that would be recoverable upon a tender less the value of the security when the buyer disposed of it and interest at six percent per year from the date of disposition.
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; Bellevue, Washington; Chicago, Illinois; and Ann Arbor, Michigan. We represent investors in FINRA arbitration and securities arbitration proceedings in all 50 states, including representing investors previously throughout Alabama, and in Birmingham, Montgomery, Mobile, Tuscaloosa, Huntsville, Dothan, Auburn, Phenix City, Gadsden, Prattville, and others. Our securities attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Alabama Securities Act
If you are a resident of Alabama and have lost money with your financial advisor or investment advisor, please CONTACT ISRAELS & NEUMAN AT 720-599-3505 OR 206-795-5798 FOR A FREE EVALUATION OF YOUR CASE.