ISRAELS & NEUMAN, PLC – Pennsylvania Securities Attorneys

Sections 401 and 501 of the Pennsylvania Securities Act.

Israels & Neuman has been protecting the rights of Pennsylvania investors for several years.  We are securities arbitration and investment fraud attorneys that represent Pennsylvania residents who have been wronged by their stockbrokers and brokerage firms.  Our investment fraud attorneys have previously represented investors in Pennsylvania, including investors who are victims of a Ponzi Scheme run by former Altoona financial advisor Douglas Simanski; investors from the Pittsburgh area who lost money in the Schwab YieldPlus fund; and investors from the Philadelphia area who lost money in variable annuities.

The residents of Pennsylvania are protected by the provisions of the Pennsylvania Securities Act.  This Act provides for the regulation of the sale of securities to Pennsylvania residents and to Pennsylvania financial advisors and stockbrokers.  Additionally, the Pennsylvania Department of Banking and Securities, with offices in Harrisburg, was created to help enforce the provisions of the Pennsylvania Securities Act.

Section 401 of the Pennsylvania 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:

Sales and Purchases — It is unlawful for any person, in connection with the offer, sale or purchase of any security in this State, directly or indirectly:

(a) To employ any device, scheme or artifice to defraud;

(b) 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

(c) To engage in any act, practice or course of business which operates or would operate a fraud or deceit upon any person.

See 70 P.S. § 1-401.  Section 501 of the Pennsylvania Securities Act further provides civil remedies in the event that the Act is violated:

Any person who: (i) offers or sells a security in violation of section 407(c) or at any time when such person has committed a material violation of section 301, or any regulation relating to either section 301 or 407(c), or any order under this act of which he has notice; or (ii) offers or sells a security in violation of sections 401, 403, 404 or otherwise 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 purchaser 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, shall be liable to the person purchasing the security from him, who may sue either at law or in equity to recover the consideration paid for the security, together with interest at the legal rate from the date of payment, less the amount of any income or distributions, in cash or in kind, received on the security, upon the tender of the security, or for damages if he no longer owns the security.

See 70 P.S. § 1-501.

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 Pennsylvania, and in Philadelphia, Pittsburgh, Harrisburg, Allentown, Altoona, Erie, Scranton, Bethlehem, Lancaster, Upper Darby, Windber, Asheville, Charleroi, New Eagle, McKeesport, State College, and others. Our securities attorneys have represented over one thousand investors against many brokerage firms in the past.

Click to view:  Pennsylvania Securities Act

If you are a resident of Pennsylvania 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.