{"id":374023,"date":"2018-06-18T14:49:00","date_gmt":"2018-06-18T19:49:00","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/massachusetts-law\/massachusetts-securities-fraud-laws.html"},"modified":"2018-06-18T14:49:00","modified_gmt":"2018-06-18T19:49:00","slug":"massachusetts-securities-fraud-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/massachusetts-law\/massachusetts-securities-fraud-laws.html","title":{"rendered":"Massachusetts Securities Fraud Laws"},"content":{"rendered":"\n
\n \n
\n

Massachusetts Securities Fraud Laws<\/h1>\n
\n
\n

Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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<\/a>. Securities are regulated both at the federal and state level. At the federal level, the U.S. Securities and Exchange Commission<\/a> is responsible for enforcing federal laws relating to securities. The Secretary of the Commonwealth of Massachusetts Securities Division<\/a> handles issues relating to securities, including enforcement and registration, inspections, compliance and examinations (RICE).<\/p>\r\n

Massachusetts Securities Fraud Laws: An Overview<\/h2>\r\n

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.<\/p>\r\n\r\n
Statute(s)<\/b><\/td>\r\n

Massachusetts General Laws, Part I, Title XV, Chapter 110A:<\/p>\r\n

What’s Prohibited?<\/b><\/td>\r\n

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:<\/p>\r\n

    \r\n
  • Use a scheme or device to defraud;<\/li>\r\n
  • Make false statements of a material fact or omit a material fact; or<\/li>\r\n
  • Take part in any practice, act, or course of business which operates as a fraud upon an individual.<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>
Penalties<\/b><\/td>\r\n

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.<\/p>\r\n

*A person who proves that they had no knowledge of a particular rule or order under the Massachusetts Uniform Securities Act<\/a> will not serve prison time.<\/p>\r\n<\/td>\r\n<\/tr>

Related Statute(s)<\/b><\/td>\r\n

Massachusetts General Laws, Part I, Title XV, Chapter 110A:<\/p>\r\n