Under Ohio law, a securities salesperson stands in a fiduciary capacity with his or her customer. An investor places special trust in a securities salesperson, who occupies a superior position in their relationship. Consequently, a securities salesperson must discharge his or her duties with good faith, honesty and reasonable diligence. A securities salesperson is prohibited from making false representations concerning material and relevant facts, and from omitting to disclose material information. A securities salesperson is prohibited from selling products that are not registered with the Division or properly exempted from registration.
Much securities fraud is committed through high pressure telephone solicitation.
Beware of stock fraud by phone. The primary remedy under the Ohio Securities Act for an aggrieved investor is the right of rescission. See R.C. 1707.43. The Division may also pursue enforcement action. While the Division cannot recover money on behalf of an aggrieved investor, Division enforcement action may demonstrate a violation of the Ohio Securities Act, which triggers the right to rescission.