{"id":375321,"date":"2016-04-11T01:23:38","date_gmt":"2016-04-11T06:23:38","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/new-york-law\/new-york-securities-laws.html"},"modified":"2016-06-20T19:51:09","modified_gmt":"2016-06-21T00:51:09","slug":"new-york-securities-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/new-york-law\/new-york-securities-laws.html","title":{"rendered":"New York Securities Laws"},"content":{"rendered":"\n
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New York Securities 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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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

Since 1921, the wolves of Wall Street have been systematically hunted by New York’s attorney generals. With the passing of the Martin Act<\/a>, the New York securities fraud<\/a> laws provide the state’s attorney general with extraordinary powers for fighting financial fraud. This power far exceeds that of any other attorney general in the United States. This is a quick summary of the securities fraud laws in New York.<\/p>\n

Civil and Criminal Charges Under New York Securities Laws<\/h2>\n

The Martin Act and additional criminal provisions have been codified under Article 23-A of New York’s General Business Law<\/a>. The following table outlines the specifics of New York securities fraud laws.<\/p>\n\n
Code Sections<\/b><\/td>\n

New York General Business \u00a7352<\/a> and \u00a7353<\/a> : Investigation and Action by the Attorney General<\/p>\n

New York General Business \u00a7352-C<\/a>: Prohibited acts constituting misdemeanor; felony<\/p>\n<\/td>\n<\/tr>

What’s Prohibited?<\/b><\/td>\n

New York securities fraud laws provide the state’s attorney general with the power to investigate and sue any person, partnership, or corporation that employs any device or scheme to defraud or to obtain money or property by means of any false pretense, representation, or promise.<\/p>\n

Misdemeanor<\/p>\n

It is a misdemeanor<\/a> under New York securities fraud laws when someone is engaged in inducing or promoting the issuance, distribution, exchange, sale, negotiation or purchase of securities and:<\/p>\n

Penalty<\/b><\/td>\n

Misdemeanor<\/p>\n

In New York, a misdemeanor offense is punishable by a sentence of anywhere between 15 days to one year in prison<\/a>.<\/p>\n

Class-E Felony<\/p>\n

Generally, class-E felonies are punishable by a sentence with a maximum of four years<\/a>, and a minimum of between one year and sixteen months.<\/p>\n

Civil Penalties<\/p>\n

The attorney general can also file civil cases against offenders of the state’s securities fraud laws for the amount that victims were defrauded.<\/p>\n<\/td>\n<\/tr><\/tbody><\/table>\n

Understanding New York securities fraud laws can be very complicated. If you have been charged by the attorney general for this crime and would like legal assistance, you can contact a New York 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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