§71-1-501. General fraud.
127 words·~1 min read·
/ok/title-71-securities/71-1-501A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
It is unlawful and shall be deemed a Class C2 felony offense for a person, in connection with the offer, sale, or purchase of a security, directly or indirectly:
1. To employ a device, scheme, or artifice to defraud;
2. To make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statement made, in the light of the circumstances under which it is made, not misleading; or
3. To engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person. Added by Laws 2003, c. 347, § 29, eff. July 1, 2004. Amended by Laws 2025, c. 486, § 291, eff. Jan. 1, 2026.