Opinion ID: 1267386
Heading Depth: 2
Heading Rank: 2

Heading: Uniform Securities Act

Text: Appellants argue that independent of the state's long-arm statute, South Carolina's Uniform Securities Act [5] provides an independent jurisdictional basis. We agree. Section 35-1-1420 provides that any person, including a nonresident of the State, who engages in conduct prohibited or made actionable by this chapter is deemed to consent to the appointment of the Securities Commissioner to receive lawful process as if it were personally served upon it. Under section 35-1-1490: Any person who: (1) Offers or sells a security in violation of subsection (2) of § 35-1-170 or § 35-1-410 or § 35-1-810, or of any rule or order under § 35-1-50 which requires the affirmative approval of sales literature before it is used or of any condition imposed under § 35-1-950 or § 35-1-990; or (2) Offers or sells a security by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, nor misleading.... Appellants allege the oil well interests were securities which were unregistered and unexempt in violation of section 35-1-810. They have also alleged violations of section 35-1-1490(2) itself. See also 69A Am.Jur.2d Securities RegulationState § 222 (1993) (Uniform Securities Act intends to enable courts to assert jurisdiction over all persons civilly liable under a state's blue sky laws so long as consistent with due process). It is unquestionable that Respondents were sellers of the oil well interests. See Allen v. Columbia Financial Management Ltd., 297 S.C. 481, 377 S.E.2d 352 (Ct.App.1988) (definition of seller includes one who passes title of or who offers security); Pinter v. Dahl, 486 U.S. 622,108 S.Ct. 2063,100 L.Ed.2d 658 (1988). We find by their actions that Respondents have submitted to jurisdiction under section 35-1-1420. See also Ross v. American Income Life Ins. Co., 232 S.C. 433, 102 S.E.2d 743 (1958) (finding similar statute regarding selling insurance in-state comports with due process even though only contact was in selling insurance contract through mail).