Maryland Securities Arbitration and Investment Fraud Attorneys
Sections 301 and 703 of the Maryland Securities Act
Have you lost money with a financial advisor in Maryland? Israels & Neuman are securities arbitration and investment fraud attorneys that represent Maryland residents who have been wronged by their stockbrokers and brokerage firms. We have previously represented investors throughout Maryland in FINRA arbitration, including the following:
- We represented an investor from the Baltimore area who was the victim of excessive trading or churning;
- Our attorneys represented several investors from the Washington, DC area who lost money investing in the Charles Schwab YieldPlus Fund.
Maryland residents are protected by the provisions of the Maryland Securities Act. This Act provides for the regulation of the sale of securities to Maryland residents and to Maryland financial advisors and stockbrokers. Additionally, the Maryland Securities Division, with offices in Baltimore, was created to help enforce the provisions of the Maryland Securities Act.
Section 301 of the Maryland Securities Act provides for liability if a financial advisor, stockbroker, 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 to:
(1) Employ any device, scheme, or artifice to defraud;
(2) 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) Engage in any act, practice, or course of business which operates or would operate as a fraud or deceit on any person.
See Md. Code § 11-301. Section 703 of the Maryland Securities Act further provides civil remedies in the event that the Act is violated:
A person is civilly liable to the person buying a security from him if he:
- Offers or sells the security in violation of § 11–304(b), § 11–401(a), § 11–402(a), or § 11–501 of this title, or of any rule or order under § 11–205 of this title which requires the affirmative approval of sales literature before it is used; or
- Offers or sells the 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 statements made, in the light of the circumstances under which they are made, not misleading, the buyer not knowing of the untruth or omission, and if he 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.
See Md. Code § 11-703.
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; Ann Arbor, Michigan; and the Seattle area. We represent investors in FINRA arbitration and securities arbitration proceedings in all 50 states, including representing investors previously throughout Maryland, and in Baltimore, Annapolis, Silver Spring, Frederick, Gaithersburg, Rockville, Bowie, College Park, Landover, the Washington DC area, and others. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Maryland Securities Act
IF YOU ARE A RESIDENT OF MARYLAND 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.