Investor Education

The securities laws in most States, including States that have adopted the Uniform Securities Act (2002) (“USA”), provide for civil causes of action against the agents, employees, managers, and executive officers of primary violators of the securities laws. This type of liability is often referred to as secondary liability. The Liability of…

In the wake of several large Ponzi schemes collapsing in 2017 and 2018, a growing number of financial advisers who steered clients towards these schemes are seeking bankruptcy protection. Fortunately, affected investors have the option of filing “nondischargeability” claims in the bankruptcy proceedings to prevent their financial advisers from escaping liability for “securities law violations,” including the sale of unregistered securities. The pertinent…

Subsection 509(2) of the Uniform Securities Act (2002) (the “USA”) provides the purchaser of an unregistered non-exempt security with a cause of action against the seller of the security. [1] Subsection 509(8)(d) of the USA provides the purchaser of an unregistered non-exempt security with a cause of action against a broker-dealer,…

A variable annuity is a type of security offered by insurance companies. The purchaser pays a “premium” which is invested, tax deferred, in one or more securities sub-accounts (each sub-account corresponds to a different mutual fund option). [1] After a certain period of time has passed, the purchaser has the option of…