What is a State Securities Act violation?

A State Securities Act violation occurs when someone offers, sells or purchases a security without meeting the requirements of the law. This includes any fraudulent investment advice, false representation or untruths made to induce someone to invest. In West Virginia, such violations are regulated by the West Virginia Securities Act, which is enforced by the West Virginia Attorney General’s Office. The state securities act sets forth a list of prohibited practices, including issuing false statements about securities or investments, failing to provide sufficient disclosure of material facts, and other general practices that are deemed fraudulent. Violations of the West Virginia Securities Act can have serious consequences. In addition to penalties including fines and jail time, an individual may be held liable for any money that was lost by investors due to their actions. This means that if an investor loses money due to fraud, the person responsible can be held liable and could be required to pay financial compensation to the investor. The best way to avoid the risks and consequences of violating the West Virginia Securities Act is to carefully research any investments prior to making any commitments. If a person is unsure of the legality of any investment or securities activity, it is important to seek advice from an experienced and qualified professional who is familiar with the laws.

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What is a State Securities Act violation?

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