The Colorado Uniform Securities Act, Colorado Revised Statutes 11-51-501, with respect to “Fraud and other prohibited conduct” provides that:

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

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

b) 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

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

Colo. Rev. Stat. § 11-51-501 Fraud and other prohibited conduct. (Colorado Revised Statutes (2016 Edition)).

Civil Remedies

Colo. Rev. Stat. § 11-51-604, with respect to Civil liabilities provides that:

(4) Any person who sells a security in violation of section 11-51-501 (1) (b) (the buyer not knowing of the untruth or omission) and who does not sustain the burden of proof that such person did not know, and in the exercise of reasonable care could not have known, of the untruth or omission is liable to the person buying the security from such person, who may sue to recover the consideration paid for the security, together with interest at the statutory rate from the date of payment, costs, and reasonable attorney fees, less the amount of any income received on the security, upon the tender of the security, or is liable for damages if the buyer no longer owns the security. Damages are deemed to be the amount that would be recoverable upon a tender, less the value of the security when the buyer disposed of it, and interest at the statutory rate from the date of disposition.

Colo. Rev. Stat. § 11-51-604 Civil liabilities. (Colorado Revised Statutes (2016 Edition)).

In Colorado, FINRA Arbitration hearings are held in Denver

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.

Additional Colorado Investor Resources:

Division of Securities
1560 Broadway
Suite 900
Denver, CO 80202

Gerald Rome
Securities Commissioner
(303) 894-2320
(303) 861-2126 (Fax)


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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.