Section 30-14-501 - GENERAL FRAUDIt is unlawful for a person, in connection with the offer, sale, or purchase of a security, directly or indirectly:
(1) To employ a device, scheme, or artifice to defraud;(2) To make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; (3) To engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person; or(4) To divert investor money to the personal use of the issuer, offeror or seller, or to pay prior investors without specifically disclosing that use before receiving the investor's money.[30-14-501, added 2004, ch. 45, sec. 2, p. 209; am. 2012, ch. 65, sec. 6, p. 185.]Amended by 2012 Session Laws, ch. 65,sec. 6, eff. 7/1/2012.