Series 24: Fraudulent Interstate Transactions

Taken from our Series 24 Online Guide

Fraudulent Interstate Transactions

Section 17 of the Securities Act declares it unlawful in the offer or sale of any securities to:

  • Employ any device, scheme, or artifice to defraud
  • Profit by means of an untrue statement or omission of a material fact
  • Engage in any transaction or activity that would defraud or deceive the purchaser

Section 17 further prohibits any person (in this case “person” refers to

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