Hawaii Jury Instruction - 4.4.3 Rule 10(b) - 5(c) Fraudulent Practice or Course of Dealing Stockbroker Churning - Violation of Blue Sky Law and Breach of Fiduciary Duty

• Category: Federal - Jury Instructions
• State: Multi-State
• Control #: US-11CF-4-4-3
• Format: Word; Rich Text

Description

This form contains sample jury instructions, to be used across the United States. These questions are to be used only as a model, and should be altered to more perfectly fit your own cause of action needs. Hawaii Jury Instruction — 4.4.3 Rule 10(b— - 5(c) Fraudulent Practice or Course of Dealing Stockbroker Churning — Violation of Blue Sky Law and Breach of Fiduciary Duty is a legal concept that encompasses various actions related to stock trading and investment practices. It addresses the fraudulent behavior of stockbrokers engaging in excessive and unnecessary trading (churning), which violates both federal securities regulations (Rule 10(b) and 5(c)) and Hawaii's Blue Sky Law. Additionally, this instruction relates to the breach of fiduciary duty by stockbrokers towards their clients. Keywords: Hawaii, Jury Instruction, 4.4.3, Rule 10(b), 5(c), Fraudulent Practice, Course of Dealing, Stockbroker Churning, Violation, Blue Sky Law, Breach of Fiduciary Duty. Different types of fraudulent practices or course of dealing that fall under this instruction may include the following: 1. Excessive Trading or Churning: This involves a stockbroker making numerous transactions in a client's account solely to generate commissions for themselves, without considering the client's best interests. 2. Unauthorized Trades: Stockbrokers executing trades without obtaining proper authorization or consent from the client, which violates the client's rights and autonomy over their investment decisions. 3. Misrepresentation or False Information: Stockbrokers providing misleading or false information to clients regarding investment opportunities, potential returns, risks involved, or the broker's qualifications, with the intention of inducing the client to make unfavorable investment decisions. 4. Failure to Diversify: Stockbrokers failing to adequately diversify a client's portfolio, thereby concentrating the investments in a few specific securities or sectors, and exposing the client to higher risks. 5. Non-Disclosure of Material Information: Stockbrokers withholding crucial information from clients, such as conflicts of interest, hidden fees or charges, or any other information that could affect the client's investment decisions. 6. Breach of Fiduciary Duty: Stockbrokers owe their clients a fiduciary duty, which means they are legally obligated to act in the client's best interests. Breaching this duty by prioritizing their own financial gain over the client's interests is a serious violation. It is important to note that the specific language and definitions of these fraudulent practices or course of dealing may vary depending on the jurisdiction and the specific case being litigated.

Hawaii Jury Instruction — 4.4.3 Rule 10(b— - 5(c) Fraudulent Practice or Course of Dealing Stockbroker Churning — Violation of Blue Sky Law and Breach of Fiduciary Duty is a legal concept that encompasses various actions related to stock trading and investment practices. It addresses the fraudulent behavior of stockbrokers engaging in excessive and unnecessary trading (churning), which violates both federal securities regulations (Rule 10(b) and 5(c)) and Hawaii's Blue Sky Law. Additionally, this instruction relates to the breach of fiduciary duty by stockbrokers towards their clients. Keywords: Hawaii, Jury Instruction, 4.4.3, Rule 10(b), 5(c), Fraudulent Practice, Course of Dealing, Stockbroker Churning, Violation, Blue Sky Law, Breach of Fiduciary Duty. Different types of fraudulent practices or course of dealing that fall under this instruction may include the following: 1. Excessive Trading or Churning: This involves a stockbroker making numerous transactions in a client's account solely to generate commissions for themselves, without considering the client's best interests. 2. Unauthorized Trades: Stockbrokers executing trades without obtaining proper authorization or consent from the client, which violates the client's rights and autonomy over their investment decisions. 3. Misrepresentation or False Information: Stockbrokers providing misleading or false information to clients regarding investment opportunities, potential returns, risks involved, or the broker's qualifications, with the intention of inducing the client to make unfavorable investment decisions. 4. Failure to Diversify: Stockbrokers failing to adequately diversify a client's portfolio, thereby concentrating the investments in a few specific securities or sectors, and exposing the client to higher risks. 5. Non-Disclosure of Material Information: Stockbrokers withholding crucial information from clients, such as conflicts of interest, hidden fees or charges, or any other information that could affect the client's investment decisions. 6. Breach of Fiduciary Duty: Stockbrokers owe their clients a fiduciary duty, which means they are legally obligated to act in the client's best interests. Breaching this duty by prioritizing their own financial gain over the client's interests is a serious violation. It is important to note that the specific language and definitions of these fraudulent practices or course of dealing may vary depending on the jurisdiction and the specific case being litigated.