ISRAELS & NEUMAN, PLC – Indiana Securities Attorneys
Sections 5-1 and 5-9 of the Indiana Uniform Securities Act.
Israels & Neuman are securities arbitration and investment fraud attorneys that represent Indiana residents who have been wronged by their stockbrokers and brokerage firms. Our investment fraud attorneys have previously represented investors in Indiana, including investors from the Indianapolis area who lost money in non-traded REITs and private placements, and investors from the Louisville area who lost money in variable annuities.
The residents of Indiana are protected by the provisions of the Indiana Uniform Securities Act. This Act provides for the regulation of the sale of securities to Indiana residents and to Indiana financial advisors and stockbrokers. Additionally, the Indiana Securities Division, with offices in Indianapolis, was created to help enforce the provisions of the Indiana Uniform Securities Act.
Indiana Code Section 23-19-5-1 provides for liability if a financial advisor or investment advisor misrepresents the risks of an investment to you. In particular, this statute provides that:
Fraudulent or deceitful acts
Sec. 1. It is unlawful for a person, in connection with the offer, sale, or purchase of a security, directly or indirectly:
(1) 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 under which they were 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 Ind. Code Ann. § 23-19-5-1. The Indiana Uniform Securities Act further provides civil remedies in the event that the Act is violated:
Sec. 9. (a) Except as provided in section 11 of this chapter, a person is liable to the purchaser if the person sells a security in violation of this article, including a violation of IC 23-19-4-12(d)(9) or IC 23-19-4-12(d)(13). It is a defense if the person selling the security sustains the burden of proof that either the person did not know, and in the exercise of reasonable care could not have known, of the violation or the purchaser knowingly participated in the violation. An action under 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 greater of eight percent (8%) per annum or the rate provided for in the security from the date of the purchase, costs, and reasonable attorney’s fees determined by the court or arbitrator, upon the tender of the security, or for actual damages as provided in subdivision (3).
(2) The tender referred to in subdivision (1) 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 subdivision (3).
(3) 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 interest at the greater of eight percent (8%) per annum or the rate provided for in the security from the date of the purchase, costs, and reasonable attorneys’ fees determined by the court or arbitrator.
See Ind. Code Ann. § 23-19-5-9.
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 Indiana, and in Indianapolis, Fort Wayne, the Louisville area, Evansville, Bloomington, Fishers, Carmel, South Bend, Hammond, Muncie, Gary, Terra Haute, and others. Our securities attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Indiana Uniform Securities Act
If you are a resident of Indiana 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.