{"id":372321,"date":"2016-04-11T01:21:50","date_gmt":"2016-04-11T06:21:50","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/dc-law\/district-of-columbia-securities-fraud-laws.html"},"modified":"2016-06-20T19:51:44","modified_gmt":"2016-06-21T00:51:44","slug":"district-of-columbia-securities-fraud-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/dc-law\/district-of-columbia-securities-fraud-laws.html","title":{"rendered":"District of Columbia Securities Fraud Laws"},"content":{"rendered":"\n
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District of Columbia Securities Fraud Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last reviewed\n

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Making a quick dollar on the stock market off of a tip from a trusted tipster may seem like a no- brainer. However, District of Columbia securities fraud<\/a> laws make sure that stock traders and their confidants do not act fraudulently when playing the market. Among other things, these rules require brokers to be licensed<\/a> and all transactions to be performed with honesty. This is a quick summary of the securities fraud laws in the District of Columbia.<\/p>\n

District of Columbia: Fraudulent Securities-Related Acts<\/h2>\n

The District of Columbia establishes both civil and criminal penalties for violations of security fraud laws. The following table outlines the specifics of these laws.<\/p>\n\n
Code Sections<\/b><\/td>\n

District of Columbia Official Code \u00a731-5605<\/a>: Fraudulent and Other Prohibited Practices<\/p>\n

District of Columbia Official Code \u00a731-5606<\/a>: Enforcement, Criminal, and Civil Liability<\/p>\n<\/td>\n<\/tr>

What’s Prohibited?<\/b><\/td>\n

Fraudulent Transaction<\/a>:<\/p>\n

A person shall not:<\/p>\n

Criminal Penalties<\/b><\/p>\n<\/td>\n

Any person who violates District of Columbia securities fraud laws is guilty of fraud in the second degree<\/a> and can be fined up to $3,000 or 3 times the value of the property which was stolen (whichever is greater), imprisoned for up to 3 years, or both.<\/p>\n

Any person who violates these laws by using one or more telephones or other electronic means of communication is guilty of fraud in the first degree<\/a> and can be fined up to $5,000 or 3 times the value of the property obtained (whichever is greater), imprisoned for up to 10 years, or both.<\/p>\n<\/td>\n<\/tr>

Civil Liabilities<\/b><\/p>\n<\/td>\n

A buyer of security may also sue at law or in equity<\/a> to recover the consideration paid for the security, or for damages if the buyer no longer owns the security.<\/p>\n<\/td>\n<\/tr><\/tbody><\/table>\n

If you have been charged with securities fraud violations and would like legal assistance, you can contact a District of Columbia securities fraud lawyer<\/a> through FindLaw. Visit FindLaw’s sections on securities fraud<\/a> and other fraud and financial crimes<\/a> for more articles and information on this topic.<\/p>\n

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