Ask Reggi Your Question Now
Can you summarize 35 SCCL Chapter 1, Article 5?
SOUTH CAROLINA UNIFORM SECURITIES ACT OF 2005 > Fraud and Liabilities
Short Summary
This legal document, part of the South Carolina Uniform Securities Act of 2005, governs civil liability, criminal penalties, and prohibited conduct in relation to the sale or purchase of securities. It applies to purchasers, sellers, and recipients of investment advice regarding securities. The document outlines conditions for maintaining an action under Section 35-1-509, including the offer of information about liability, purchaser’s rights, and necessary financial or other information to correct misrepresentations or omissions. It also specifies options for relief, acceptance period, and payment terms. The document further establishes civil liability for selling securities in violation of specified sections or making misleading statements or omissions of material fact. It allows purchasers to recover consideration paid for the security, less any income received, along with interest, costs, and attorneys’ fees. Sellers can also maintain an action to recover the security, income received, costs, and attorneys’ fees. The document addresses calculation of actual damages, liability of broker-dealers, agents, investment advisers, and investment adviser representatives, joint and several liability, contribution rights, and survival of causes of action. It sets time limits for instituting actions and voids certain contractual provisions. Additionally, the document imposes criminal penalties for willful violations of the act or any rule or order issued under it, with penalties varying based on the amount of loss caused to an investor. It also prohibits certain conduct in providing investment advice regarding securities and allows for the adoption of rules to define fraudulent or deceptive acts and prescribe means to prevent such conduct. The document does not mention any specific exemptions or penalties.
Whom does it apply to?
Individuals involved in securities transactions, including purchasers, sellers, and recipients of investment advice
What does it govern?
Purchasers, sellers, and recipients of investment advice regarding securities
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
Civil liability: Consideration paid for the security, less any income received, along with interest, costs, and reasonable attorneys' fees. Criminal penalties: Felony with fines up to $50,000 and imprisonment up to 10 years for violations resulting in a loss of $20,000 or more. Felony with fines determined by the court and imprisonment up to 5 years for violations resulting in a loss of more than $1,000 but less than $20,000. Misdemeanor with fines up to $30,000 and imprisonment up to 3 years for violations resulting in a loss of $1,000 or less, or no proven losses.
Jurisdiction
South Carolina