{"id":376496,"date":"2018-08-13T17:24:22","date_gmt":"2018-08-13T22:24:22","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/tennessee-law\/tennessee-securities-act-and-investment-fraud-laws.html"},"modified":"2018-08-14T12:06:09","modified_gmt":"2018-08-14T17:06:09","slug":"tennessee-securities-act-and-investment-fraud-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/tennessee-law\/tennessee-securities-act-and-investment-fraud-laws.html","title":{"rendered":"Tennessee Securities Act and Investment Fraud Laws"},"content":{"rendered":"\n
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Tennessee Securities Act and Investment 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

Securities, such as stocks and bonds, are a large part of the economy so it’s no surprise that there are securities laws<\/a> at both the federal and state level. Federal securities laws are enforced by the U.S. Securities and Exchange Commission<\/a> while the Tennessee Securities Division<\/a>, which is a part of the Department of Commerce and Insurance, has the responsibility of enforcing the Tennessee Securities Act and protecting investors in the state.<\/p>\r\n

Securities fraud occurs when a person makes misleading or untrue statements about a company or its stocks to convince people to make financial decisions about the company based on that information. In most states, including Tennessee, securities fraud is generally treated as a serious crime since it can cause significant financial damage.<\/p>\r\n

Tennessee Securities Act and Investment Fraud Laws: The Basics<\/h2>\r\n

Grasping the meaning of a statute can be challenging, particularly when it comes to complicated areas of law, such as securities and investment regulation. That’s why it’s helpful to read an overview of laws that’s written in a way that doesn’t involve legal jargon. The following chart provides a brief overview of Tennessee Securities Act and investment fraud laws as well as links to applicable statutes.<\/p>\r\n\r\n
Statute(s)<\/b><\/td>\r\n

Tennessee Code, Title 48, Chapter 1, Part 1, Section 48-1-101<\/a>, et seq. (Tennessee Securities Act of 1980<\/i>)<\/p>\r\n<\/td>\r\n<\/tr>

What’s Prohibited?<\/b><\/p>\r\n<\/td>\r\n

It’s unlawful for a person in connection with the offer, sale, or purchase any security in Tennessee to:<\/p>\r\n

Charges and Penalties<\/b><\/td>\r\n

Willful violation of the Tennessee Securities Act is a Class D felony<\/b> punishable by<\/a> 2 to 12 years of imprisonment* and fines up to $5,000.<\/p>\r\n

*A person can’t be imprisoned for violating a rule or order related to securities if they prove that they didn’t have actual knowledge of the rule or order.<\/p>\r\n<\/td>\r\n<\/tr>

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

Tennessee Code, Title 47, Chapter 8, Section 47-8-101<\/a>, et seq. (Investment Securities<\/i>)<\/p>\r\n<\/td>\r\n<\/tr><\/tbody><\/table>\r\n

Note:<\/b> State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.<\/i><\/p>\r\n

Tennessee Securities Act and Investment Fraud Laws: Related Resources<\/h2>\r\n

For additional information and resources related to this topic, please click on the links below:<\/p>\r\n