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2018 Georgia Code 10-5-51 | Car Wreck Lawyer

Link to State of Georgia Official Statute 2018 Georgia Code Annotated (sourced from legal.resource.org)
O.C.G.A. 10-5-51 Case Law from Google Scholar Amendments to OCGA 10-5-51

TITLE 10 COMMERCE AND TRADE

Section 5. Georgia Uniform Securities, 10-5-1 through 10-5-90.

ARTICLE 5 VIOLATIONS, PENALTIES, AND CIVIL LIABILITY

10-5-51. Fraud or deceit unlawful; adoption of rule.

  1. It is unlawful for a person that advises others for compensation, either directly or indirectly, or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as part of a regular business, issues or promulgates analyses or reports relating to securities:
    1. To employ a device, scheme, or artifice to defraud another person; or
    2. To engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.
  2. A rule adopted under this chapter may define an act, practice, or course of business of an investment adviser or an investment adviser representative, other than a supervised person of a federal covered investment adviser, as fraudulent, deceptive, or manipulative and prescribe means reasonably designed to prevent investment advisers and investment adviser representatives, other than supervised persons of a federal covered investment adviser, from engaging in acts, practices, and courses of business defined as fraudulent, deceptive, or manipulative.
  3. A rule adopted under this chapter may specify the contents of an investment advisory contract entered into, extended, or renewed by an investment adviser.

(Code 1981, §10-5-51, enacted by Ga. L. 2008, p. 381, § 1/SB 358.)

JUDICIAL DECISIONS

Subscription agreement's disclosure barred recovery.

- Summary judgment for corporation, the corporation's chief executive officer (CEO), and the corporation's chief financial officer on an investor's claims pursuant to the Securities Act was proper; although the investor claimed that the investor had been misled by the CEO's promise that the investor would receive one-third of the corporation's stock in return for the investment, it was undisputed that a subscription agreement which the investor admittedly received and executed did not provide for the interest the investor claimed the investor was orally promised by the CEO, but rather, stated that the investor was receiving, at most, 8.16 percent of the outstanding common stock. Given that the subscription agreement so starkly contradicted the CEO's alleged promise, the investor knew that the latter was untrue, and the investor was not entitled to recover for the alleged violation of the Securities Act. Fernandez v. WebSingularity, Inc., 299 Ga. App. 11, 681 S.E.2d 717 (2009).

Failure to show fraud.

- Guarantor of a bank loan could not show securities fraud by a bank based upon a consultant's representations as to the proposed imminent purchase of another bank in which the guarantor's company owned stock because the guarantor could not show either actionable misrepresentations or justifiable reliance regarding the consultant's representations. Furthermore, the consultant was not associated with the bank which made the loan to the guarantor's company. Griffin v. State Bank, 312 Ga. App. 87, 718 S.E.2d 35 (2011).

No results found for Georgia Code 10-5-51.