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Pastor, Church & Law

written by Richard R. Hammar, J.D., LL.M., CPA

Securities Law Violations

Volume 1 . Chapter 4 . § 4-07
Key point 4-07 Clergy may violate state securities laws in a number of ways, including the sale of securities without registering as an agent, and the commission of fraudulent practices.

Laws regulating the sale of securities have been enacted by the federal government and by all 50 states. The term security is defined very broadly by such laws. The Uniform Securities Act, which has been adopted by a majority of the 50 states, defines a security as

Any note; stock; treasury stock; bond; debenture; evidence of indebtedness; certificate of interest or participation in any profit-sharing agreement;collateral trust certificate; preorganization certificate or subscription; transferable share; investment contract; voting trust certificate; certificate ...

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