What is a State Securities Act violation?

A State Securities Act violation is when someone violates the laws and regulations set forth by the state of Washington specifically concerning investments and securities. The Securities Act of Washington is designed to protect investors from fraud, misrepresentation, and manipulation of securities. The violations of a State Securities Act can include, but are not limited to, maliciously manipulating the market, providing false or misleading information concerning the sale and entrance of investments, misappropriation of funds, or fraudulent sales practices. There are also violations related to registration of securities, anti-fraud, and anti-manipulation. When an individual is suspected of violating the Act, the Washington State Department of Financial Institutions (DFI) will investigate. The DFI may pursue civil action against the suspect and potentially seize assets. Criminal action could also be pursued which can result in jail time. In order to avoid potential violations of the Act, it is important to always research and verify a potential investment’s accuracy, promise, and safety and to remember that if something seems too good to be true, it often is. Be sure to also check licenses and registrations of any potential investment to ensure all regulations are being followed.

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What is a State Securities Act violation?

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