ISRAELS & NEUMAN, PLC – Georgia Securities Attorneys
Sections 5-50 and 5-58 of the
Georgia Uniform Securities Act.
Israels & Neuman are securities arbitration and investment fraud attorneys that have represented numerous Georgia residents who have been wronged by their stockbrokers and brokerage firms. Our investment fraud attorneys have previously represented investors in Georgia, including investors from Marietta who were victims of a scheme run by Frederick Brimmer II, investors from the Atlanta area who lost money in Schwab YieldPlus bond funds, and investors throughout Georgia who lost money in the Morgan Keegan bond funds.
The residents of Georgia are protected by the provisions of the Georgia Uniform Securities Act. This Act provides for the regulation of the sale of securities to Georgia residents and to Georgia financial advisors and stockbrokers. Additionally, the Georgia Securities Division, with offices in Atlanta, was created to help enforce the provisions of the Georgia Uniform Securities Act.
Georgia Code Section 10-5-50 provides for liability if a financial advisor or investment advisor misrepresents the risks of an investment to you. In particular, this statute provides that:
- 10-5-50. Unlawful practices with offer, sale, or purchase of security
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 it is 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 Ga. Code Ann. § 10-5-50. The Georgia Uniform Securities Act further provides civil remedies in the event that the Act is violated:
- 10-5-58. Enforcement of civil liability; damages
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(b) A person is liable to the purchaser if the person sells a security in violation of Code Section 10-5-20, or, by means of an untrue statement of a material fact or an omission to state a material fact necessary in order to make the statement made, in light of the circumstances under which it is made, not misleading, the purchaser not knowing the untruth or omission and the seller not sustaining the burden of proof that the seller did not know and, in the exercise of reasonable care, could not have known of the untruth or omission. 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 legal rate of interest from the date of the purchase, costs, and reasonable attorney fees determined by the court upon the tender of the security or for actual damages as provided in paragraph (3) of this subsection;
(2) The tender referred to in paragraph (1) of this subsection 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 paragraph (3) of this subsection; and
(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 legal rate of interest from the date of the purchase, costs, and reasonable attorney fees determined by the court.
See Ga. Code Ann. § 10-5-58.
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 Georgia, and in Atlanta, Marietta, Columbus, Augusta, Athens, Savannah, Sandy Springs, Macon, Alpharetta Johns Creek, Warner Robbins, Valdosta, Peachtree Corners, and others. Our securities attorneys have represented over one thousand investors against many brokerage firms in the past.
If you are a resident of Georgia 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.