§ 6.3

• Jurisdiction: Arizona

§ 6.3 Investment-Advisory Fraud

By its terms the antifraud provision of the Investment Management Act¹⁹⁷⁷ extends liability beyond direct communicators of investment advice. It does this in two ways. One is through the statute's "in-connection-with" element and the other is through its "directly-or-indirectly" provision.

Section 44-3241(A) prohibits fraudulent practices occurring "directly or indirectly" "in connection with a transaction or transactions." Under the in-connection-with provision both the...