ISRAELS & NEUMAN, PLC–South Carolina Investment Fraud and Securities Attorneys
Sections 501 and 509 of the South Carolina Uniform Securities Act
Have you lost money with a financial advisor in South Carolina? Israels & Neuman are securities arbitration and investment fraud attorneys that represent South Carolina residents who have been wronged by their stockbrokers and brokerage firms. We have previously invested investors throughout South Carolina, including investors who lost money in the Charles Schwab YieldPlus bond funds.
South Carolina residents are protected by the provisions of the South Carolina Uniform Securities Act. This Act provides for the regulation of the sale of securities to South Carolina residents and to South Carolina financial advisors and stockbrokers. Additionally, the South Carolina Securities Division, with offices in Columbia, was created to help enforce the provisions of the South Carolina Uniform Securities Act.
Section 501 of the South Carolina Uniform 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:
SECTION 35-1-501. General fraud.
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 statements made, in light of the circumstances under which they were 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 S.D. Code § 35-1-501. The South Carolina Uniform Securities Law further provides civil remedies in the event that the Act is violated:
(b) A person is liable to the purchaser if the person sells a security in violation of Sections 35-1-301 or 35-1-501 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 attorneys’ fees determined by the court, upon the tender of the security, or for actual damages as provided in paragraph (3).
(2) The tender referred to in paragraph (1) 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).
See S.D. Code § 35-1-509(b).
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 South Carolina, and in Columbia, Charleston, North Charleston, the Charlotte area, Mount Pleasant, Rock Hill, Hilton Head Island, Myrtle Beach, Greenville, Summerville, Sumter, Spartanburg, and others. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: South Carolina Uniform Securities Act
IF YOU ARE A RESIDENT OF SOUTH CAROLINA 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.