SECTIONS 27100-27101 - California Statutes

CORPORATIONS CODE

SECTION 27100-27101

27100. Any individual who, within this state, solicits, receives,
collects, or solicits any subscription or contract to pay, any
contributions, fees, funds, or compensation of any kind, from any
owner or holder of any security, for the purpose of protecting,
enforcing, or representing the rights of the security owners or
holders evidenced by the security, shall be subject to the provisions
of this division.

27101. It is unlawful for any individual, directly or indirectly,
in connection with the solicitation, receipt, or collection of, or
solicitation of any subscription or contract to pay any
contributions, fees, funds, or compensation of any kind, from any
owner or holder of any security, for the purpose of protecting,
enforcing, or representing the rights of the security owners or
holders evidenced by the security, to do any of the following:
(a) Employ any device, scheme, or artifice to defraud.
(b) By means of any written or oral communication, make any untrue
statement of a material fact, or omit to state a material fact
necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading.
(c) Engage in any transaction, act, practice, or course of
business which operates or would operate as a fraud or deceit upon
any person.
(d) Misappropriate or convert the funds, security, or property of
any other person.