This page is no longer current. You are being redirected to the current text at http://www.law.cornell.edu/uscode/text/15/77q. If you are not forwarded to the new page, please click here. To avoid this message in the future, please select your links from the Table of Contents page at http://www.law.uc.edu/CCL/sldtoc.html.

 Securities Lawyer's Deskbook
                         published by The University of Cincinnati College of Law
UC Law logo

Notice: The information on this page may not be current. To learn more, please click here.



Securities Act of 1933





Section 17 -- Fraudulent Interstate Transactions


  1. Use of interstate commerce for purpose of fraud or deceit

    It shall be unlawful for any person in the offer or sale of any securities or any security-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act [15 USCS § 78c note]) by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly--

    1. to employ any device, scheme, or artifice to defraud, or

    2. to obtain money or property 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 light of the circumstances under which they were made, not misleading; or

    3. to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser.

  2. Use of interstate commerce for purpose of offering for sale

    It shall be unlawful for any person, by the use of any means or instruments of transportation or communication in interstate commerce or by the use of the mails, to publish, give publicity to, or circulate any notice, circular, advertisement, newspaper, article, letter, investment service, or communication which, though not purporting to offer a security for sale, describes such security for a consideration received or to be received, directly or indirectly, from an issuer, underwriter, or dealer, without fully disclosing the receipt, whether past or prospective, of such consideration and the amount thereof.

  3. Exemptions of section 3 not applicable to this section

    The exemptions provided in section 3 shall not apply to the provisions of this section.

  4. Limitation

    The authority of the Commission under this section with respect to security-based swap agreements (as defined in section 206B of the Gramm-Leach-Bliley Act [15 USCS § 78c note]) shall be subject to the restrictions and limitations of section 2A(b).


Legislative History


May 27, 1933, ch 38, Title I, § 17, 48 Stat. 84; Aug. 10, 1954, ch 667, Title I, § 10, 68 Stat. 686; Dec. 21, 2000, P.L. 106-554, § 1(a)(5), 114 Stat. 2763.



Notice to Users: The Deskbook is made available with the understanding that the University of Cincinnati College of Law is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. See Terms and Conditions of Use.  UC Brand Ingot

© Copyright 1998-2011, University of Cincinnati, All Rights Reserved
 Contact: ronald.jones@uc.edu