Michigan Securities Fraud Laws
Created by FindLaw's team of legal writers and editors | Last reviewed March 05, 2018
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When you purchase shares of stock in a company -- referred to as securities -- the value is based on the company's financial health, future outlook, and any potential liabilities (such as costs associated with an acquisition or changes in the marketplace). Since purchases of stock rely so heavily on this data, it may be tempting for companies to mislead investors or would-be investors through omissions, overstatements, or blatant lies. Whatever the method, the act of intentionally misleading investors is called securities fraud . It's a serious crime, charged as a felony in Michigan, because it undermines the credibility of the financial system as a whole.
While the federal government has its own laws and penalties addressing this crime, the following is a summary of Michigan's securities fraud laws.
Michigan Securities Fraud Laws at a Glance
Statutes |
Michigan Uniform Securities Act (2002) § 451.2101, et seq. |
Definition of the Crime |
It is unlawful for a person, in connection with the offer, sale, or purchase of a security to directly or indirectly do any of the following:
It is unlawful for a 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, to do any of the following:
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Crime Classifications and Penalties |
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Civil Liability for Acts of Securities Fraud |
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Note: 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.
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Get Professional Legal Help with Your Securities Fraud Case
Securities fraud is an example of a so-called "white collar" crime, since it involves financial sleight of hand and is typically committed by businesspeople or investors. If you've been charged with this offense, an experienced attorney will be able to challenge the evidence against you and formulate a solid defense. Get help today by contacting a Michigan criminal defense attorney near you.
Can I Solve This on My Own or Do I Need an Attorney?
- Complex criminal defense situations usually require a lawyer
- Defense attorneys can help protect your rights
- A lawyer can seek to reduce or eliminate criminal penalties
Get tailored advice and ask your legal questions. Many Michigan attorneys offer free consultations.
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