ISRAELS & NEUMAN, PLC – Ohio Securities Attorneys


Section 1707.44 of the Ohio Securities Act


Israels & Neuman are securities arbitration and investment fraud attorneys that represent Ohio residents who have been wronged by their stockbrokers and brokerage firms.  Our investment fraud attorneys have previously represented a number of Ohio investors, including some of the following:


  1. A couple from the Cleveland area who lost money in a limited partnership investment;
  2. An investor from the Columbus area who lost money investing in a private company that later filed for bankruptcy; and
  3. Another couple from the Cleveland area who lost money investing in a non-traded real estate investment trust (REIT).


Ohio residents are protected by the provisions of the Ohio Securities Act.  This Act provides for the regulation of the sale of securities to Ohio residents and to Ohio financial advisors and stockbrokers.  Additionally, the Ohio Division of Securities, with offices in Columbus, was created to help enforce the provisions of the Ohio Securities Act.


Section 1707.44 of the Ohio 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:


(B) No person shall knowingly make or cause to be made any false representation concerning a material and relevant fact, in any oral statement or in any prospectus, circular, description, application, or written statement, for any of the following purposes:

(1) Registering securities or transactions, or exempting securities or transactions from registration, under this chapter;

(2) Securing the qualification of any securities under this chapter;

(3) Procuring the licensing of any dealer, salesperson, investment adviser, investment adviser representative, bureau of workers’ compensation chief investment officer, or state retirement system investment officer under this chapter;

(4) Selling any securities in this state;

(5) Advising for compensation, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities;

(6) Submitting a notice filing to the division under division (X) of section 1707.03 or section 1707.092 or 1707.141 of the Revised Code.


See Ohio Rev. Code § 1707.44.  The Ohio Securities Act further provides civil remedies in the event that the Act is violated:


Subject to divisions (B) and (C) of this section, every sale or contract for sale made in violation of Chapter 1707. of the Revised Code, is voidable at the election of the purchaser. The person making such sale or contract for sale, and every person that has participated in or aided the seller in any way in making such sale or contract for sale, are jointly and severally liable to the purchaser, in an action at law in any court of competent jurisdiction, upon tender to the seller in person or in open court of the securities sold or of the contract made, for the full amount paid by the purchaser and for all taxable court costs, unless the court determines that the violation did not materially affect the protection contemplated by the violated provision.


See Ohio Rev. Code § 1707.43(A).


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 Ohio, and in Cleveland, Columbus, Cincinnati, Akron, Toledo, Dayton, Youngstown, Lorain, Elyria, Cuyahoga Falls, Kettering, Beaver Creek, Cleveland Heights, Marysville, and others. Our securities attorneys have represented over one thousand investors against many brokerage firms in the past.


Click to view:  Ohio Securities Act

Click to view:  Ohio Securities Act – Anti-Fraud Provision

Click to view:  Ohio Securities Act – Civil Remedies


If you are a resident of Ohio 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.