Florida Securities Fraud Laws

Florida Securities and Investor Protection Act, Florida Statutes Chapter 517: Securities Transactions

What's Prohibited?

Under Florida securities fraud laws, it is unlawful for a person:

In connection with the rendering of any investment advice or in connection with the offer, sale, or purchase of any investment or security, directly or indirectly:

• To employ any device, scheme, or artifice to defraud;
• 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
• To engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon a person.

To publish or circulate any communication which describes such security for a consideration received or to be received without fully disclosing the receipt, whether past or prospective, of such consideration and the amount of the consideration.

To knowingly and willfully falsify or conceals a material fact, make any fraudulent statement, or make or use any false writing or document, knowing the same to contain any false, fictitious, or fraudulent statement or entry.

Criminal Penalties

Any person who violates Florida securities fraud laws is guilty of a felony of the third degree. If convicted, this is punishable by imprisonment for up to five years, a fine of up to $5,000, or both.

Any person who violates these laws by obtaining money or property of an aggregate value exceeding $50,000 from five or more persons is guilty of a felony of the first degree. If convicted, this is punishable by imprisonment for up to 30 years, a fine of up to $10,000, or both.

Habitual felony offenders may face enhanced penalties and mandatory minimum prison terms. Violators may also face civil penalties.