44-3241. Fraud in provision of investment advisory services; liability; violation; classification
A. It is a fraudulent practice and unlawful for a person, in connection with a transaction or transactions within or from this state involving the provision of investment advisory services, directly or indirectly, to do any of the following:
1. Employ any device, scheme or artifice to defraud.
2. Make any untrue statement of material fact, or fail to state any material fact necessary in order to make the statement made, in the light of the circumstances under which it was made, not misleading.
3. Misrepresent any professional qualifications with the intent that the client rely on the misrepresentation.
4. Engage in any transaction, practice or course of business that operates or would operate as a fraud or deceit.
B. A person who violates this section is liable to any person for all losses incurred by that person as a result of the violation, together with interest on losses incurred, court costs and reasonable attorney fees. A civil action under this section is barred unless it is brought within three years after the violation or within two years after discovery of the facts constituting the violation, whichever occurs first.
C. A person who violates this section is guilty of a class 4 felony.
Section: Previous 44-3201 44-3202 44-3211 44-3212 44-3213 44-3214 44-3231 44-3241 44-3271 44-3272 44-3291 44-3292 44-3293 44-3294 44-3295 NextLast modified: October 13, 2016