Contra Costa California 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
• County: Contra Costa
• 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. Contra Costa California 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: This jury instruction pertains to a specific legal scenario involving a stockbroker engaging in fraudulent practices or a course of dealing known as "churning." Churning refers to the excessive buying and selling of securities in a customer's account, primarily done to generate more commissions for the broker rather than benefitting the investor. In the context of this instruction, the violation of Rule 10(b)-5(c), established by the Securities and Exchange Commission (SEC), indicates the stockbroker's fraudulent practices. Rule 10(b)-5(c) prohibits individuals from engaging in any act, practice, or course of business that operates or would operate as a fraud or deceit upon any person in connection with the purchase or sale of securities. Moreover, the instruction mentions the violation of Blue Sky Law, which is a state-specific securities law that aims to protect investors from fraudulent practices within the securities' industry. By violating the Blue Sky Law, the stockbroker has demonstrated a disregard for the regulations put in place to safeguard investors' interests and maintain market integrity. Lastly, the instruction discusses the breach of fiduciary duty, emphasizing the relationship between the stockbroker and the investor. A fiduciary duty is a legal obligation requiring the stockbroker to act solely in the best interests of their client. By engaging in fraudulent practices and churning, the stockbroker has breached this duty, potentially causing financial harm to the investor. Different types of Contra Costa California 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 may include specific cases or examples that demonstrate the elements mentioned in the instruction. For example, a case might involve evidence of excessive trading in a client's account, resulting in financial losses and evidence of the broker's intent to defraud. Alternatively, a case may highlight specific instances where a stockbroker misrepresents investment opportunities to clients, leading to financial harm and violation of the fiduciary duty owed to the investor.

Contra Costa California 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: This jury instruction pertains to a specific legal scenario involving a stockbroker engaging in fraudulent practices or a course of dealing known as "churning." Churning refers to the excessive buying and selling of securities in a customer's account, primarily done to generate more commissions for the broker rather than benefitting the investor. In the context of this instruction, the violation of Rule 10(b)-5(c), established by the Securities and Exchange Commission (SEC), indicates the stockbroker's fraudulent practices. Rule 10(b)-5(c) prohibits individuals from engaging in any act, practice, or course of business that operates or would operate as a fraud or deceit upon any person in connection with the purchase or sale of securities. Moreover, the instruction mentions the violation of Blue Sky Law, which is a state-specific securities law that aims to protect investors from fraudulent practices within the securities' industry. By violating the Blue Sky Law, the stockbroker has demonstrated a disregard for the regulations put in place to safeguard investors' interests and maintain market integrity. Lastly, the instruction discusses the breach of fiduciary duty, emphasizing the relationship between the stockbroker and the investor. A fiduciary duty is a legal obligation requiring the stockbroker to act solely in the best interests of their client. By engaging in fraudulent practices and churning, the stockbroker has breached this duty, potentially causing financial harm to the investor. Different types of Contra Costa California 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 may include specific cases or examples that demonstrate the elements mentioned in the instruction. For example, a case might involve evidence of excessive trading in a client's account, resulting in financial losses and evidence of the broker's intent to defraud. Alternatively, a case may highlight specific instances where a stockbroker misrepresents investment opportunities to clients, leading to financial harm and violation of the fiduciary duty owed to the investor.