{"id":374306,"date":"2018-09-12T09:50:44","date_gmt":"2018-09-12T14:50:44","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/minnesota-law\/minnesota-securities-fraud-laws.html"},"modified":"2018-09-12T14:49:00","modified_gmt":"2018-09-12T19:49:00","slug":"minnesota-securities-fraud-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/minnesota-law\/minnesota-securities-fraud-laws.html","title":{"rendered":"Minnesota Securities Fraud Laws"},"content":{"rendered":"\n
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Minnesota 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 updated\n

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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

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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

Incidents of securities fraud<\/a> can constitute criminal "white collar" offenses, but they can also be treated as civil violations, opening up violators to lawsuits from victims. Securities fraud is broad-based and refers to unlawful behavior concerning the financial transactions of stocks, bonds, and other se curities. Both the federal government and states have prohibitions against deceptive practices that impact securities.<\/p>\r\n

Unlike other states, Minnesota’s securities regulatory program resides within the Minnesota Department of Commerce. The Minnesota securities division handles complaints relating to insider trading, pyramid or Ponzi schemes<\/a>, or other forms of investment fraud.<\/p>\r\n

A Synopsis of Minnesota Securities Fraud Laws<\/h2>\r\n

While it’s preferable to work with an attorney to get a complete statutory analysis, a condensed guide to the statutes written in relatable terms and common language serves as a valuable introduction to the law. See the chart below for a helpful breakdown of Minnesota’s security fraud laws.<\/p>\r\n\r\n

Statutes<\/b><\/p>\r\n<\/td>\r\n

Minnesota Statutes:<\/p>\r\n

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Elements of the Crime<\/b><\/p>\r\n

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Unlawful Investment Advice:<\/i><\/b><\/p>\r\n

Any person that advises others for compensation, either directly or indirectly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as part of a regular business, issues or gives analyses or reports relating to securities, is prohibited from:<\/p>\r\n

Possible Penalties<\/b><\/p>\r\n<\/td>\r\n

The actual penalties will depend on the specific circumstances of the case, but possible penalties include:<\/p>\r\n

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  • Incarceration (up to 5 years<\/b>)<\/li>\r\n
  • Fines (up to $10,000<\/b>)<\/li>\r\n
  • Restitution to the victim<\/li>\r\n
  • Civil penalties<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>

Related Offenses<\/b><\/p>\r\n<\/td>\r\n

Minnesota Statutes:<\/p>\r\n