- It is unlawful for a person, in connection with the offer, sale, or purchase of security, directly or indirectly:
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(1) to employ a device, scheme, or artifice to defraud;
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(2) to make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statement made, in the light of the circumstances under which it is made, not misleading; or
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(3) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.
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