Stocks and bonds fall under the general category of "securities." Securities fraud occurs when false or misleading statements are made about a company or the value of its stocks in order to sway people to make decisions based on that information. For example, in 2017 a Scottsdale resident was ordered to cease and desist his activities after allegedly selling unregistered securities and issuing false investment reports. Securities fraud can lead to people losing a lot of money and, for this reason, activities relating to securities are governed by both federal and state laws.
The U.S. Securities and Exchange Commission is responsible for enforcing federal laws relating to securities, while each state has its own branch that regulates securities in the state. Arizona's securities laws are enforced by the Securities Division, which is part of the Arizona Corporation Commission. The Securities Division is charged with preserving the integrity of the financial marketplace by investigating investor complaints as well as overseeing the licensing and registration of securities and investment advisers.
Arizona Securities Fraud Laws: The Basics
While reading the actual language of the law is an important step in legal research, it can often be an intimidating task as many laws are written in legal jargon that can take time to interpret and understand. This is especially true when it comes to complicated areas of law, such as the regulation of securities. For this reason, it can be helpful to read a summary of the law written in plain English. In the table below, you'll find a brief overview of securities fraud laws in Arizona as well as links to relevant statutes.
Arizona Revised Statutes, Title 44, Chapter 12, Article 13, Section 44-1991, et seq. (Fraudulent Practices)
It's prohibited for an individual to do any of the following in connection with a transaction within or from Arizona involving an offer to sell or buy securities, or a sale or purchase of securities:
|Charges and Penalties||
Violation of this article is a class 4 felony, which is generally punishable by imprisonment for 1.5 to 3 years.
Arizona Revised Statutes, Title 44, Chapter 12:
Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
Arizona Securities Fraud Laws: Related Resources
If you're looking for additional information and resources related to this topic, you can visit the links listed below.
Facing Securities Fraud Charges in Arizona? Get Legal Help
Conviction under Arizona securities fraud laws can result in imprisonment as well as possible civil penalties. If you're facing securities fraud charges in Arizona, it's a good idea to contact a skilled white collar crimes lawyer who will be able to help you develop your defense, and advocate on your behalf.
Contact a qualified attorney.