ISRAELS & NEUMAN, PLC – Delaware Securities and Investment Fraud Attorneys
Sections 73-201 of the Delaware Securities Act
Have you lost money due to the actions of a Delaware financial advisor or stockbroker? Are you a Delaware resident who has been harmed by your securities brokerage firm? Our firm may be able to help. We represent Delaware investors who lost money in bad investments or because of fraudulent conduct of a stockbroker or financial advisor.
Delaware residents are protected by the provisions of the Delaware Securities Act. This Act provides for the regulation of the sale of securities to Delaware residents and to Delaware financial advisors and stockbrokers. Additionally, the Delaware Investor Protection Unit (which is an office under the Attorney General), with offices in Wilmington, Dover, and Georgetown, was created to help enforce the provisions of the Delaware Uniform Securities Act.
Section 73-201 of the Delaware 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:
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 Del. Code tit. 6 § 73-201. The Delaware Securities Act further provides civil remedies in the event that the Act is violated:
Any person who:
(1) Offers or sells a security in violation of § 73-302, § 73-301 or § 73-210(b) of this title, or of any rule or order under § 73-211 of this title which requires the affirmative approval of sales literature before it is used, or of any condition imposed under § 73-204(d) of this title.
(2) Offers, sells or purchases a security by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statement made, in the light of the circumstances under which they are made, not misleading (the buyer or seller not knowing of the untruth or omission), and who does not sustain the burden of proof that the person did not know, and in the exercise of reasonable care could not have known of the untruth or omission, is liable to the person buying or selling the security from or to him or her, who may sue either at law or in equity to recover the consideration paid for the security, together with the interest at the legal rate from the date of payment costs, and reasonable attorneys’ fees, less the amount of any income received on the security, upon the tender of the security, or for damages if he or she no longer owns the security.
See Del. Code tit. 6 § 73-605(a).
If your financial advisor 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 and investment fraud law firm with offices in Denver, Colorado; Ann Arbor, Michigan; and the Seattle area. We represent investors in FINRA arbitration and securities arbitration proceedings in all 50 states, including investors throughout Delaware, and in Wilmington, Dover, Georgetown, Newark, Middleton, Smyrna, Milford, Seaford, and others. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Delaware Securities Act TOC
IF YOU ARE A RESIDENT OF DELAWARE AND HAVE LOST MONEY WITH YOUR FINANCIAL ADVISOR OR INVESTMENT ADVISOR, PLEASE CONTACT US AT 720-599-3505 FOR A FREE EVALUATION OF YOUR CASE.
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