California · Corporations Code
CORP §25541: (a) Any person who willfully employs, directly or indirectly, any device, scheme, or artifice to defraud in connection with the offer, purchase, or sale of any security or willfully engages, directly
What this law says, in plain English
A person who uses deception or fraud in connection with selling or buying securities faces up to five years imprisonment and/or fines up to $10 million. Corporate issuers face up to five years imprisonment and/or fines up to $25 million.
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