§ 2.8.2

• Jurisdiction: Arizona

§ 2.8.2 Criminal and Antifraud Provisions

Offering or selling an investment company's securities without the required permit or license was a misdemeanor,³²² and knowingly providing false information to the Commission to obtain a dealer permit or agent's license was a felony.³²³

Perhaps of more significance, the 1921 Act included the state's first antifraud statute. Section 14 of the Act made it a felony to knowingly or willfully make "any false statements or representations . . . to any person for the purpose of influencing such person to purchase, either for himself or for others, the securities of any issuer."³²⁴ Although no reported cases under § 14 exist, the courts implied civil remedies for violations of...