Ii. [§ 11.7] State Securities Law Violations

JurisdictionMaryland

II. [§ 11.7] STATE SECURITIES LAW VIOLATIONS

John Smith is a concert pianist and resides in Baltimore City, Maryland. George Harris is a director, officer, agent, employee, and stockholder of Milksky, Inc.

On March 15, 2022, Harris, while acting as an agent and employee of Milksky, Inc., sold several hundred shares of Milksky, Inc. to Smith for $75,000. Milksky, Inc. and Harris had not registered the shares with the office of the Division of Securities of Maryland as required by law. Smith had been given no information regarding Milksky, Inc. and was unaware of the financial condition of Milksky, Inc. at the time he purchased the shares.

The shares acquired by Smith were worthless. Smith tendered the shares back to Milksky, Inc. and demanded a return of the $75,000 paid for their purchase. Milksky, Inc. and Harris refused to repay the $75,000. John Smith filed suit against George Harris and Milksky, Inc. for state securities law violations.

COMPLAINT


State Securities Law Violation


John Smith (hereinafter "Smith"), Plaintiff, by his attorneys, Nora P. Olsen and Olsen & Olsen, P.A., sues George Harris (hereinafter "Harris") and Milksky, Inc. (hereinafter "Milksky"), Defendants, and states:
1. Plaintiff Smith is a resident of Baltimore City, Maryland.
2. Defendant Harris is a resident of Baltimore City, Maryland. Defendant Milksky is a corporation organized under the laws of the State of Maryland, having its principal place of business at 123 Paca Street, Baltimore City, Maryland.
3. At all times herein mentioned, Defendant Harris was a director, officer, agent, and employee of Milksky and as such was acting both individually and on behalf of Milksky in directing the sale of securities of Milksky to the public, and in particular, to Plaintiff.
4. On March 15, 2022, while acting both individually and as an agent and employee of Milksky, Harris, within the scope of his employment, solicited Plaintiff for the purpose of selling to Plaintiff shares of Milksky.
5. On March 15, 2022, Defendant Harris negotiated and sold three hundred (300) shares of Milksky to Plaintiff Smith, a copy of the certificates for which is attached hereto and incorporated herein by reference as Exhibit A. In exchange for such shares, Plaintiff Smith paid Milksky the sum of Seventy-Five Thousand Dollars ($75,000).
6. Such shares are securities as defined by § 11-101(s)(1) of the Corporations and Associations Article of the Maryland Annotated Code.
7. Prior to the negotiation and sale of the shares to Plaintiff Smith, Defendant Milksky had not registered the shares with the Office of the Attorney General for the State of Maryland as required by § 11-501 of the Corporations and Associations Article.
8 . At the time of purchase, Plaintiff received no information regarding Milksky and was unfamiliar with the financial resources, standing, and condition of Milksky.
9. The shares purchased by Plaintiff are utterly worthless.
10. Plaintiff has tendered back to Defendants the stock certificates and has demanded a return of the monies he paid. Defendants, however, have refused, and continue to refuse, to repay the money. As a result, Plaintiff has suffered damage in the sum of Seventy-Five Thousand Dollars ($75,000) or more.
WHEREFORE, Plaintiff Smith demands judgment against Defendants Harris and Milksky, Inc., jointly and severally, in the amount of Seventy-Five Thousand Dollars ($75,000) or more, plus interest, costs, and such other and further relief as the Court may deem appropriate.

__________
Nora P. Olsen
AIS No. 0123456789
Olsen & Olsen, P.A.
Bank of America Building
10 Light Street
Baltimore, Maryland 21202
Phone: (410) 555-1234
Fax: (410) 555-1235
E-mail: NPOlsen@OlsenLaw.com

Attorneys for Plaintiff

COMMENT

Section 11-703(a)(1)(i) of the Corporations and Associations Article of the Maryland Annotated Code, Md. Code Ann., Corporations and...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT