Sale of Unregistered Securities

While it is common for businesses to seek capital for operating costs in Alabama, the way this capital can be raised is regulated by the Alabama Securities Commission. The most basic regulation is that, subject to a few exceptions, any securities offered for sale must be registered with the Alabama Securities Commission. If they are not registered, their sale is illegal and can subject the seller to the felony charge of “sale of unregistered securities.”

Our securities attorneys at Boles Holmes White can counsel you on whether a registration is required. If you’ve already been charged, we can fight for you to show that the instrument was not a security, was not sold in the State, or is not required to be registered because if falls under one of the several exceptions. We can also represent you if you are accused of being an unregistered broker-dealer.

Any person offering to sell a security within Alabama must register with the Alabama Securities Commission (as well as other federal securities agencies) as a securities broker.  If you fail to register and go about offering a security for sale, you can be prosecuted for the felony called “sale by an unregistered broker-dealer”.

Just like with the sale of unregistered securities, we can help you register, if you qualify as a broker dealer.  However, if you are already under investigation, let our attorneys analyze your case to see if you were even required to register, or if the Securities Commission is overreaching.

The Dothan security attorneys of Boles Holmes White are experienced in handling securities cases to determine whether:

• This product meets the legal definition of a security?
• The security offering is subject to any exception to Alabama securities laws, such as sale to officer or director or sale to accredited investor?
• Any “sale” even occurred?
• Any offering was ever made in the State of Alabama?
• The Alabama Circuit Court or Securities Commission even have jurisdiction?

Are you the target of an investigation by the Alabama Securities Commission?  If so, call the experienced criminal attorneys with Boles Holmes White who know how to represent those charged with the sale of unregistered securities or sale by an unauthorized broker dealer.  We are available to discuss your case by email or at 334-366-6086.