ISRAELS & NEUMAN, PLC – Colorado Securities Attorneys

The Colorado Securities Act


Israels & Neuman are securities arbitration and investment fraud attorneys that represent Colorado residents who have lost money through the actions of their stockbrokers and brokerage firms.  Our investment fraud attorneys have previously represented investors throughout the State of Colorado, including investors who lost money as a result of their broker churning their accounts and also, their broker selling fraudulent unregistered securities.


Colorado residents are protected by the provisions of the Colorado Securities Act (hereinafter “the CSA”).  The CSA provides for the regulation of the sales of securities in the State of Colorado, including the securities industry.  The enforcement of the Securities Division investigates complaints related to securities and their sales, including complaints about brokers, brokerage firms, and investment advisors.  The enforcement division has offices in Denver, Colorado.  You can file a complaint against your broker or brokerage firm HERE.


The Colorado Securities Act, C.R.S. § 11-51-101, et seq., in pertinent part, 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 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.


C.R.S. § 11-51-501 (2008).  Any person who recklessly, knowingly, or with an intent to defraud violates § 11-51-501:


is liable to the person buying or selling such security or receiving such services in connection with the violation for such legal or equitable relief that the court deems appropriate, including rescission, actual damages, interest at the statutory rate, costs, and reasonable attorney fees.


C.R.S. § 11-51-604(3) (emphasis added).


Colorado Revised Statute § 11-51-604(5) states:


Every person who, directly or indirectly, controls a person liable under subsection (1), (2), (2.5), (2.6), or (3) of this section is liable jointly and severally with and to the same extent as such controlled person…


Thus, under Colorado law, a brokerage firm is liable for each and every bad act committed by agents and brokers, jointly and severally, to the same extent that its agents would be liable for the bad act.


If your financial advisor or stockbroker makes misrepresentations to you when selling securities or sells you fraudulent investments, 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, Seattle, Portland, and Ann Arbor. We represent investors in FINRA arbitration and securities arbitration proceedings in all 50 states, including representing investors previously throughout Colorado, and in Denver, Aurora, Littleton, Centennial, Broomfield, Fort Collins, Cherry Hills Village, Vail, Aspen, Breckinridge, Colorado Springs, Boulder, Grand Junction, Lakewood, Longmont, Westminster, Arvada, Wheat Ridge, Englewood, Highlands Ranch, Castle Pines, and Castle Rock.


Our securities 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.


Click to view:  Colorado Securities Act


If you are a resident of Colorado 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.