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NCJRS Abstract

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NCJ Number: 52001 Find in a Library
Title: EXPANDING ENFORCEMENT OPTIONS - THE SECURITIES FRAUD APPROACH - OPERATIONAL GUIDE TO WHITE-COLLAR CRIME ENFORCEMENT - A REPORT OF THE NATIONAL CENTER ON WHITE-COLLAR CRIME
Author(s): J E LONG
Corporate Author: Battelle Human Affairs Research Ctrs
Law and Justice Study Ctr
United States of America
Date Published: 1978
Page Count: 48
Sponsoring Agency: Battelle Human Affairs Research Ctrs
Seattle, WA 98105
National Institute of Justice/
Rockville, MD 20849
US Dept of Justice
Washington, DC 20531
Grant Number: 77-TA-99-0008
Sale Source: National Institute of Justice/
NCJRS paper reproduction
Box 6000, Dept F
Rockville, MD 20849
United States of America
Document: PDF
Language: English
Country: United States of America
Annotation: THE PURPOSE OF THIS GUIDE IS TO SHOW THAT STATE SECURITIES LAWS PROVIDE A VIABLE ALTERNATIVE FOR CONTROLLING VARIOUS TYPES OF SCHEMES WHICH ARE DIFFICULT TO CONTROL THROUGH USE OF TRADITIONAL STATUTES.
Abstract: THIS PAPER ATTEMPTS TO DISPEL THE MYTH THAT STATE SECURITIES LAWS ARE DIFFICULT AND CUMBERSOME ENFORCEMENT TOOLS. SUCH STATUTES CAN BE USED EFFECTIVELY AGAINST BUSINESS FRAUD BECAUSE, UNLIKE FEDERAL STATUTES, THEY DO NOT FOCUS ON NATIONALLY MARKETED SECURITIES. INSTEAD, THEY FOCUS ON IRREGULAR SECURITIES OR THOSE OF THE NEWLY FORMED COMPANY. THE STATE SECURITIES LAWS HAVE COME TO HAVE A WIDE RANGE OF APPLICABILITY TO BUSINESS OPPORTUNITY FRAUDS, INVESTMENT FRAUDS, AND GET-RICH-QUICK SCHEMES. MOST STATES EMPLOY THE DEFINITION OF SECURITY FOUND IN THE UNIFORM SECURITIES ACT OR THAT FOUND IN THE FEDERAL SECURITIES ACT OF 1933. THERE ARE THREE RECOGNIZED TESTS FOR THE DETERMINATION OF AN INVESTMENT CONTRACT--THE HOWEY TEST, THE RISK-CAPITAL TEST, AND THE COMBINED RISK-CAPITAL-HOWEY TEST. STATE SECURITIES LAWS ALLOW FOR PROSECUTION FOR FAILURE TO REGISTER SECURITIES, FOR FAILURE TO REGISTER AS AN AGENT OR DEALER, AND FOR SECURITIES-FRAUD VIOLATIONS. PROSECUTORS CAN USE THESE PROVISIONS IN VARIOUS WAYS, AND ILLUSTRATIONS ARE PROVIDED FROM VARIOUS STATES. CASE STUDIES DESCRIBE THE PROSECUTION OF A PYRAMID SALES SCHEME, A BUSINESS OPPORTUNITY SCHEME, AND AN ADVANCED-FEE SCHEME. THROUGHOUT THE DISCUSSION, STATE COURT DECISIONS AFFECTING VARIOUS ASPECTS OF SUCH PROSECUTIONS ARE CITED. APPENDIXES CONTAIN PHRASES AND DEFINITIONS FROM THE UNIFORM SECURITIES ACT, THE FULL TEXT OF THE NORTH DAKOTA FRANCHISE INVESTMENT ACT, THE CALIFORNIA GENERAL FALSE ADVERTISING STATUTE, AND A BIBLIOGRAPHY.
Index Term(s): California; Consumer fraud; Fraud; Judicial decisions; North Dakota; Prosecution; State laws; United States of America; White collar crime
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=52001

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