Virginia Securities Attorneys

ISRAELS & NEUMAN, PLC – Virginia Securities Arbitration and Investment Fraud Attorneys

Sections 502 and 522 of the Virginia Securities Act

Have you lost money with a financial advisor in Virginia? Israels & Neuman are securities arbitration and investment fraud attorneys that represent Virginia residents who have been wronged by their stockbrokers and brokerage firms.  We have previously invested investors throughout Virginia in FINRA arbitration, including the following:

  1. We represented a couple of investors who were victims of a fraudulent scheme operated by a former Chesapeake financial advisor named Joshua Abernathy;
  2. Our attorneys represented several investors from Arlington and the Washington, DC area who lost money investing in the Charles Schwab YieldPlus Fund; and
  3. Our attorneys represented investors who lost money in the Morgan Keegan bond fund

Virginia residents are protected by the provisions of the Virginia Securities Act.  This Act provides for the regulation of the sale of securities to Virginia residents and to Virginia financial advisors and stockbrokers.  Additionally, the Virginia Division of Securities and Retail Franchising, with offices in Richmond, was created to help enforce the provisions of the Virginia Securities Act.

Section 502 of the Virginia 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 shall be unlawful for any person in the offer or sale of any securities, directly or indirectly,

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

(2) To obtain money or property 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 were made, not misleading, or

(3) To engage in any transaction, practice or course of business which operates or would operate as a fraud or deceit upon the purchaser.

See Va. Code § 13.1-502.  The Virginia Securities Act further provides civil remedies in the event that the Act is violated:

  1. Any person who: (i) sells a security in violation of §§ 13.1-502, 13.1-504 A, 13.1-507 (i) or (ii), 13.1-510 (e) or (f), or (ii) sells a security by means of an 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 were made, not misleading (the purchaser not knowing of such untruth or omission), and who shall not sustain the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of such untruth or omission, shall be liable to the person purchasing such security from him who may sue either at law or in equity to recover the consideration paid for such security, together with interest thereon at the annual rate of six percent, costs, and reasonable attorneys’ fees, less the amount of any income received on the security, upon the tender of such security, or for the substantial equivalent in damages if he no longer owns the security.

See Va. Code § 13.1-522.

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 Virginia, and in Richmond, Virginia Beach, Chesapeake, Arlington, Alexandria Norfolk, Newport News, Hampton, Roanake, Portsmouth, Lynchburg, the Washington DC area, and others. Our attorneys have represented over one thousand investors against many brokerage firms in the past.

Click to view:  Virginia Securities Act