Massachusetts Securities Fraud Laws

The term "securities" encompasses a variety of financial investments, such as stocks, bonds, or options. When misleading or false statements are made about a corporation or the value of its stocks in order to persuade people to make decisions based on that information, it's referred to securities fraud. Securities are regulated both at the federal and state level. At the federal level, the U.S. Securities and Exchange Commission is responsible for enforcing federal laws relating to securities. The Secretary of the Commonwealth of Massachusetts Securities Division handles issues relating to securities, including enforcement and registration, inspections, compliance and examinations (RICE).

Massachusetts Securities Fraud Laws: An Overview

Researching a legal question should always involve looking up and reading the actual statute at play. However, this can often be a daunting task since statues are typically written in legal jargon, which can take time to understand. Trying to get a quick answer can be especially frustrating when it comes to reading statutes that relate to complicated issues like securities laws. That's why it can be helpful to read a summary of the law in plain English. In the following table, you'll find an overview of Massachusetts securities fraud laws and links to relevant statutes.

Statute(s)

Massachusetts General Laws, Part I, Title XV, Chapter 110A:

What's Prohibited?

It's prohibited for a person to directly or indirectly do any of the following in connection with the sale, offer, or purchase of a security:

  • Use a scheme or device to defraud;
  • Make false statements of a material fact or omit a material fact; or
  • Take part in any practice, act, or course of business which operates as a fraud upon an individual.
Penalties

Violation of Massachusetts securities fraud laws is punishable by up to 10 years in state prison* and/or a fine of up to $100,000.

*A person who proves that they had no knowledge of a particular rule or order under the Massachusetts Uniform Securities Act will not serve prison time.

Related Statute(s)

Massachusetts General Laws, Part I, Title XV, Chapter 110A:

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.

Massachusetts Securities Fraud Laws: Related Resources

For additional information and resources related to this topic, please visit the links listed below.

Charged with Securities Fraud in Massachusetts? Contact an Attorney

Being convicted for violating Massachusetts securities fraud laws can result in a lengthy prison stay and hefty fines. Considering the consequences, it's in your best interest to speak with an experienced white collar crimes lawyer if you've been charged with securities fraud in Massachusetts. A lawyer can explain your options, help you develop your defense, and represent you in plea negotiations and/or trial, if necessary.

Next Steps: Search for a Local Attorney

Contact a qualified attorney.