Missouri Securities Fraud Laws

The term "securities fraud" refers to deceptive actions used to influence individuals into making decisions about the sales of securities based on false information or misleading statements.

Enforcement of Securities Fraud Laws in Missouri

The Missouri Securities Division provides protection for investors against fraud and enforces the state's securities laws, including the Missouri Uniform Securities Act (also known as the "Big Sky Law"). If you commit offenses including insider trading, investment fraud, or stock manipulation, you may be subject to civil liability in addition to criminal charges.

Missouri Securities Fraud Laws at a Glance

It can be frustrating to read a statute in its entirety without truly understanding what the law conveys. That's why it's useful to read a simplified version of the text that breaks down the law in more readable terms. See the chart below that explains securities fraud laws in Missouri.

Statutes

Missouri Revised Statutes:

Elements of the Crime

 

 

General Fraud: It is prohibited for any individual, relating with the offer, sale, or purchase of any security (directly or indirectly) to engage in the following:

  • To employ any device or scheme to defraud; or
  • To make any untrue statement of a material fact or any omission to state a material fact necessary to make the statements made, in the light of the circumstances under which they were made, not misleading; or
  • To engage in any act, practice or course of business which operates or would operate as a fraud or deceit on another person.

Unlawful Investment Advice: The following activities are prohibited for an individual advising another person regarding the value of securities or their purchase or sale:

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

Misleading Filings: It's unlawful for an individual to:

  • Make a statement that at the time it's made and under the circumstances under which the statement was made is materially false or misleading;
  • Omit a material fact about the statement that was made. Without the fact the statement is misleading.

Possible Penalties

The actual penalties will depend on the specific circumstances of the case, but possible penalties include:

  • Incarceration
  • Fines
  • Restitution to the victim
  • Civil penalties

Possible Defenses
  • Mistake of fact
  • Lack of intent
  • Defendant may claim an exemption, exception, preemption, or exclusion as an affirmative defense.

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.

Missouri Securities Fraud Laws: Related Resources

Accused of Securities Fraud? Discuss Your Case with a Missouri Attorney

If you're accused of violating Missouri's securities fraud laws and running afoul of the Missouri Securities Division, then you should consider speaking to an experienced attorney about your case. Contact a white collar crime attorney located near you right away for assistance in possibly reducing your charges or dismissing your case altogether.

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