The Arkansas Uniform Securities Act, Arkansas Code 23-42-507

It is unlawful for any person, in connection with the offer, sale, or purchase of any security, directly or indirectly:

(1) To employ any device, scheme, or artifice to defraud;

(2) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading; or

(3) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.

Ark. Code 23-42-507 Fraud or deceit in connection with offer, sale, or purchase of securities. (Arkansas Code (2015 Edition))

Civil Liabilities

With respect to Civil Liabilities, Ark. Code 23-42-106 states that:

(a) (1) A person is liable to a buyer of a security if the person offers or sells the security:

(A) In violation of § 23-42-212(b), § 23-42-301, or § 23-42-501(1) or (2), a rule or order of the Securities Commissioner under § 23-42-502 which requires the affirmative approval of sales literature before it is used, or any condition imposed under § 23-42-403(d), § 23-42-404(g), or § 23-42-404(i); or

(B) By means of an untrue statement of a material fact or a failure to state a material fact necessary in order to make the statement made, in the light of circumstances under which it is made, not misleading, if the buyer does not know of the untruth or omission and meets the burden of proof that he or she did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.

(2) In a successful action under subdivision (a)(1) of this section, the buyer may recover costs and reasonable attorney’s fees plus:

(A) Upon tender of the security, the consideration paid for the security and interest at six percent (6%) per year from the date of payment, less the amount of any income received from owning the security; or

(B) (i) Damages if the buyer no longer owns the security.

Ark. Code 23-42-106 Civil liability. (Arkansas Code (2015 Edition)).

FINRA Hearing Locations

In Arkansas, FINRA Arbitration hearings are held in Little Rock.

FINRA Arbitration hearings are held in Little Rock

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 Arkansas Investor Resources:

Securities Department
Heritage West Building
201 East Markham, Room 300
Little Rock, AR 72201-1692

Edmond Waters
Securities Commissioner
(501) 324-9260
(501) 324-9268 (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.