Jump directly to the Content

Securities

A federal court found several "elders" of a religious ministry personally liable for securities fraud.

Key point 9-04. Federal and state laws regulate the offer and sale of securities for the protection of the investing public. In general, an organization that issues securities must register the securities, and the persons who will be selling the securities, with state and federal agencies. In addition, federal and state laws contain a broad prohibition on fraudulent activities in the sale of securities. Churches are exempt from some of these requirements in some states. However, they remain subject to the prohibition of securities fraud in all fifty states, and under federal law.
Federal and State Securities Laws

* A federal court found several "elders" of a religious ministry personally liable for securities fraud as a result of the sale of unregistered securities to several investors. A religious ministry engaged in the creation, offer and sale of investment contracts and ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
  • None
Posted:
  • July 1, 2004