ISRAELS & NEUMAN, PLC – Arkansas Securities Attorneys
Section 507 of the Arkansas Securities Act.
Israels & Neuman are securities arbitration and investment fraud attorneys that represent Arkansas residents who have been wronged by their stockbrokers and brokerage firms. Our investment fraud attorneys have previously represented investors in Arkansas, including several investors who had substantial losses in the Morgan Keegan bond funds.
The residents of Arkansas are protected by the provisions of the Arkansas Securities Act. This Act provides for the regulation of the sale of securities to Arkansas residents and to Arkansas financial advisors and stockbrokers. Additionally, the Arkansas Securities Department, with offices in Little Rock, was created to help enforce the provisions of the Arkansas Securities Act.
Arkansas Securities Act Section 507 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:
(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 Ark. Code § 23-42-507. The Arkansas Securities Act further provides civil remedies in the event that the Act is violated:
In a successful action under subdivision (a)(1) of this section, the buyer may recover costs and reasonable attorney’s fees plus:
(A) Upon tender of the security, the consideration paid for the security and interest at six percent (6%) per year from the date of payment, less the amount of any income received from owning the security.
See Ark. Code § 23-42-106(a)(2).
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 Arkansas, and in Little Rock, Hot Springs, Fort Smith, Fayetteville, Springdale, Jonesboro, North Little Rock, Conway, Rogers, Pine Bluff, Bentonville, and Jacksonville. Our securities attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Arkansas Securities Act
If you are a resident of Arkansas 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.