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Investment Fraud in Connecticut: Why You Need a Connecticut Securities Attorney

Investment fraud can happen anywhereeven in Connecticut. A recent case of investment fraud in Connecticut illustrates why you may need a Connecticut securities attorney.


James Booth, a former financial advisor based in Norwalk, Connecticut, was arrested back in October 2019 for allegedly stealing $13 million from dozens of his advisory clients. He later pled guilty. How did James Booth dupe his clients? He crafted fake account statements; when clients logged into their online advisory accounts, they would see statements that artificially inflated the value of their accounts. Booth used fake statements to assuage client fears and conceal his nefarious intentions. In one instance, a client thought that his account was worth $1.8 million, but it was really only valued at $250,000. James Booth is awaiting sentencing on federal fraud charges.

This recent case illustrates that investment fraud can happen anywhere, and can be perpetrated by Connecticut brokers. Thus, you may need a Connecticut securities attorney. Read on to learn about how Connecticut protects investors and what to do if you think you’ve been a victim of investment fraud.

How Connecticut Protects Investors from Broker Fraud

The Securities and Business Investments Division protects investors and regulates securities in Connecticut. How does the Division do that? Its mission is five-fold. The Securities and Business Investments Division:

  1. registers securities and business opportunities sold in Connecticut;
  2. licenses and registers brokers, broker-dealers, agents, and other investment professionals who offer securities to Connecticut residents;
  3. registers the Connecticut branch offices of broker-dealers;
  4. conducts in-person, on-site examinations of broker-dealer branches; and
  5. enforces the securities laws of Connecticut.

What are the securities laws of Connecticut? The securities laws of Connecticut encompass three major laws:

  1. the Connecticut Uniform Securities Act
  2. the Connecticut Business Opportunity Investment Act
  3. the Connecticut Tender Offer Act

If you fear that your broker or investment advisor violated the securities laws of Connecticut, you should not hesitate to contact a Connecticut securities attorney. Read on to learn about the different securities laws of Connecticut.

The Connecticut Uniform Securities Act regulates securities offered in the state of Connecticut, as such is one of many “Blue Sky Laws” across the nation that regulate securities at the state level. (For more information about “Blue Sky Laws,” please see our article “What Our ‘Blue Sky Laws’?”.) What are the provisions of the Connecticut Uniform Securities Act? Its provisions are broad and far-reaching but here are a few highlights:

  • The Connecticut Uniform Securities Act prohibits persons from engaging in any schemes designed to defraud investors.
  • The securities commissioner may deny or revoke the registration of any broker who violations securities regulations.
  • No person shall imply that they have special expertise in dealing with the financial matters of senior citizens.
  • No person may offer securities on the basis of materially untrue information.

Investment regulation in the state of Connecticut does not stop with the Connecticut Uniform Securities Act. Other regulations include the Connecticut Business Opportunity Investment Act and the Connecticut Tender Offer Act.

The Connecticut Business Opportunity Investment Act regulates the offering of certain business opportunities, including vending machines and coin-based amusements. The provisions of the Act are designed to protect prospective buyers and investors. For example, the Act stipulates the sellers must help buyers find a place to establish such a business opportunity. The Act also regulates certain surety bonds and trust accounts.

The Connecticut Tender Offer Act is another way that Connecticut protects investors. Specifically, the Act prohibits anyone from making a tender offering in the state unless the offering meets criteria for an exemption. It also prohibits any offeror from engaging in fraudulent or deceptive practices.

In addition to enforcing the above laws, Connecticut securities regulators also prioritize Investor Education. In conjunction with the North American Securities Administrators Association (NASAA), the Securities and Business Investments Division of Connecticut has distributed several electronic brochures, including:

The Division’s commitment to educating investors doesn’t stop with these publications, however. The Division runs a robust educational program in which staff members are available to give free informational presentations and seminars to community members.

Next Step: Contact a Connecticut Securities Attorney

While investing is one way to grow your net worth, as an investor you must stay informed about fraud to protect yourself and safeguard your financial future.

If you have questions about your investments, please contact the experienced securities attorneys of Fitapelli Kurta. Our securities fraud attorneys have worked with investors from Connecticut. Whether you’re in Hartford, Westport, Greenwich, Groton, Darien, or any other town in Connecticut, we’re here to help you. We only get paid if you do. Our attorneys work on contingency: we only collect a fee from clients if we can recover money on their behalf. Call (877) 238-4175 or email for your free case consultation.