The Arizona Securities Act, Arizona Revised Statutes 44-1991 with respect to “Fraud in purchase or sale of securities” states that:

It is a fraudulent practice and unlawful for a person, in connection with a transaction or transactions within or from this state involving an offer to sell or buy securities, or a sale or purchase of securities, including securities exempted under section 44-1843 or 44-1843.01 and including transactions exempted under section 44-1844, 44-1845 or 44-1850, directly or indirectly to do any of the following:

Employ any device, scheme or artifice to defraud.

Make any untrue statement of material fact, or omit to state any material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.

Engage in any transaction, practice or course of business which operates or would operate as a fraud or deceit.

In a private action brought pursuant to subsection A, paragraph 2 of this section or section 44-1992, if the person who offered or sold the security proves that any portion or all of the amount recoverable under subsection A, paragraph 2 of this section or section 44-1992 represents an amount other than the depreciation in value of the subject security resulting from the part of the prospectus or oral communication, with respect to which the liability of the person is asserted, not being true or omitting to state a material fact required to be stated or necessary to make the statement not misleading, then the amount shall not be recoverable. This subsection does not apply to any actions based on allegations of activities constituting dishonest or unethical practices in the securities industry.

ARS 44-1991 Fraud in purchase or sale of securities (Arizona Revised Statutes (2016 Edition).

Civil Remedies

Arizona Revised Statutes 44-2002, also provides a “Remedy for voidable purchases” and states:

A purchase or contract for purchase from a seller of securities made in violation of section 44-1842, 44-1991 or 44-1994 is voidable at the election of the seller of the securities, and the seller may bring an action in a court of competent jurisdiction to recover the amount of the seller’s damages, with interest, taxable court costs and reasonable attorney fees.

A person against whom an action for a violation of section 44-1991 is brought is not liable under subsection A of this section if the person sustains the burden of proof that the person did not know and in the exercise of reasonable care could not have known of the untrue statement or misleading omission.

ARS 44-2002 Remedy for voidable purchases (Arizona Revised Statutes (2016 Edition)).

Arizona Hearing Locations

In Arizona, FINRA Arbitration hearings are held in Phoenix

Phoenix, AZ

FINRA Arbitration hearings are held in Phoenix

Under the FINRA Code of Arbitration Procedure, the FINRA Securities Arbitration hearing locations will selected based upon the hearing location closest to your residence at the time of the events giving rise to the dispute.

Other Arizona Resources

Arizona Corporation Commission
Securities Division
1300 West Washington Street
Third Floor
Phoenix, AZ 85007

Matthew J. Neubert
(602) 542-4242
(602) 388-1335 (Fax)


  • This field is for validation purposes and should be left unchanged.

AboutNicholas Guiliano, Esq.

Nicholas J. Guiliano has more than 25 years of securities related experience, and has represented more than 1,000 public customers in claims against brokerage firms for fraud in connection with the sale of securities principally in arbitration before the Financial Industry Regulatory Authority (“FINRA”) Dispute Resolution, Inc. (formerly known as The National Association of Securities Dealers (“NASD”) Dispute Resolution, and the New York Stock Exchange (“NYSE”) Department of Arbitration.