Sec. 17. fraudulent interstate transactions

324 words·~1 min read·/statute-compilations/comps-1884/sec-17

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

## Sec. 17 fraudulent interstate transactions **[**77q**]** ###

(a)It shall be unlawful for any person in the offer or sale of any securities (including security-based swaps) or any security-based swap agreement (as defined in section 3(a)(78) of the Securities Exchange Act27) by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly— 27The reference in the matter preceding paragraph

(1)to the “Securities Exchange Act” probably should read “Securities Exchange Act of 1934”. ####

(1)to employ any device, scheme, or artifice to defraud, or ####

(2)to obtain money or property by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or ####

(3)to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. ###

(b)It shall be unlawful for any person, by the use of any means or instruments of transportation or communication in interstate commerce or by the use of the mails, to publish, give publicity to, or circulate any notice, circular, advertisement, newspaper, article, letter, investment service, or communication which, though not purporting to offer a security for sale, describes such security for a consideration received or to be received, directly or indirectly, from an issuer, underwriter, or dealer, without fully disclosing the receipt, whether past or prospective, of such consideration and the amount thereof. ###

(c)The exemptions provided in section 3 shall not apply to the provisions of this section. ###

(d)The authority of the Commission under this section with respect to security-based swap agreements (as defined in section 3(a)(78) of the Securities Exchange Act of 1934) shall be subject to the restrictions and limitations of section 2A(b) of this title.