LD 509
pg. 139
Page 138 of 183 An Act To Adopt the Maine Uniform Securities Act Page 140 of 183
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LR 441
Item 1

 
practice or course of business that operates or would operate as a
fraud or deceit on the other person is liable to the other person.
An action under this subsection is governed by the following.

 
A.__The person defrauded may maintain an action to recover
the consideration paid for the advice and the amount of any
actual damages caused by the fraudulent conduct, interest at
the legal rate of interest from the date of the fraudulent
conduct, costs and reasonable attorney's fees determined by
the court, less the amount of any income received as a
result of the fraudulent conduct.

 
B.__This subsection does not apply to a broker-dealer or its
agents if the investment advice provided is solely
incidental to transacting business as a broker-dealer and no
special compensation is received for the investment advice.

 
7.__Joint and several liability.__The following persons are
liable jointly and severally with and to the same extent as
persons liable under subsections 2 to 6:

 
A.__A person that directly or indirectly controls a person
liable under subsections 2 to 6, unless the controlling
person sustains the burden of proof that the person did not
know and, in the exercise of reasonable care, could not have
known of the existence of conduct by reason of which the
liability is alleged to exist;

 
B.__An individual who is a managing partner, executive
officer or director of a person liable under subsections 2
to 6, including an individual having a similar status or
performing similar functions, unless the individual sustains
the burden of proof that the individual did not know and, in
the exercise of reasonable care, could not have known of the
existence of conduct by reason of which the liability is
alleged to exist;

 
C.__An individual who is an employee of or associated with a
person liable under subsections 2 to 6 and who materially
aids the conduct giving rise to the liability, unless the
individual sustains the burden of proof that the individual
did not know and, in the exercise of reasonable care, could
not have known of the existence of conduct by reason of
which the liability is alleged to exist; and

 
D.__A person that is a broker-dealer, agent, investment adviser
or investment adviser representative that materially aids the
conduct giving rise to the liability under subsections 2 to 6,
unless the person sustains the burden of


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