ISRAELS & NEUMAN, PLC – New Jersey Securities Attorneys

Article 3-52 of the New Jersey Uniform Securities Law

Have you lost money due to the actions of a New Jersey financial advisor or stockbroker?  Are you a New Jersey resident who has been harmed by your securities brokerage firm?  Our firm may be able to help.  We have previously represented a number of New Jersey investors who lost money in bad investments or because of fraudulent conduct of a broker, including investors who lost money in the Charles Schwab YieldPlus Fund, as well as victims of former Bridgewater, New Jersey advisor Daniel Rivera.

New Jersey residents are protected by the provisions of the New Jersey Uniform Securities Law.  This Act provides for the regulation of the sale of securities to New Jersey residents and to New Jersey financial advisors and stockbrokers.  Additionally, the New Jersey Bureau of Securities, with offices in Newark, was created to help enforce the provisions of the New Jersey Uniform Securities Act.

Article 3-52 of the New Jersey Uniform Securities Law 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 shall be unlawful for any person, in connection with the offer, sale, or purchase of any security, 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;

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

(d) To fail to deliver the prospectus filed under the “Securities Act of 1933” to each purchaser of a security registered under that act, in accordance with the prospectus delivery requirements of that act.

See N.J. Rev. Stat. § 49:3-52.  The New Jersey Uniform Securities Law further provides civil remedies in the event that the Act is violated:

Any person who offered, sold or purchased a security or engaged in the business of giving

investment advice to a person in violation of paragraph (1), (2), (3), (4) or (5) of subsection (a) of this section is liable to that person, who may bring an action either at law or in equity to recover the consideration paid for the security or the investment advice and any loss due to the advice, together with interest set at the rate established for interest on judgments for the same period by the Rules Governing the Courts of the State of New Jersey from the date of payment of the consideration for the investment advice or security, and costs, less the amount of any income received on the security, upon the tender of the security and any income received from the investment advice or on the security, or for damages if he no longer owns the security.

See N.J. Rev. Stat. § 49:3-71(c.

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 and the Seattle area.  We represent investors in FINRA arbitration and securities arbitration proceedings in all 50 states, including investors throughout New Jersey, and in Newark, Hoboken, Jersey City, Paterson, Woodbridge, Toms River, Trenton, Camden, Clifton, Vineland, Bayonne, and others. Our attorneys have represented over one thousand investors against many brokerage firms in the past.

Click to view:  New Jersey Uniform Securities Law