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Exploring the Martin Act: New York's Approach to Financial Fraud
Definition & meaning
The Martin Act is a New York law that addresses financial fraud. It is part of the New York General Business Law, specifically in article 23-A, sections 352-353. This law grants the state the authority to investigate and prosecute financial fraud cases. Notably, it allows for questioning without the right to counsel or the right against self-incrimination, which means individuals can be compelled to provide information that could be used against them in a fraud investigation.
Table of content
Legal use & context
The Martin Act is primarily used in criminal law to combat financial fraud. It empowers the New York Attorney General to pursue investigations and prosecutions for various financial crimes, including securities fraud and investment scams. Individuals who are questioned under this act may find it beneficial to utilize legal resources, such as templates available on US Legal Forms, to navigate their rights and obligations effectively.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A financial advisor is investigated under the Martin Act for allegedly misleading clients about investment risks. During the investigation, they are questioned without the ability to have a lawyer present.
Example 2: A company faces scrutiny for potential securities fraud, and the New York Attorney General invokes the Martin Act to gather evidence against the firm. (hypothetical example)
Relevant laws & statutes
The primary statute related to the Martin Act is the New York General Business Law, article 23-A, sections 352-353. This legislation outlines the powers granted to the Attorney General and the procedures for investigating financial fraud.
Comparison with related terms
Term
Definition
Key Differences
Martin Act
A New York law addressing financial fraud.
Focuses on state-level enforcement and lacks the right to counsel.
Securities Exchange Act
A federal law regulating securities transactions.
Applies nationally and includes investor protections and rights.
Common misunderstandings
What to do if this term applies to you
If you find yourself involved in an investigation under the Martin Act, it is crucial to understand your rights. Consider consulting a legal professional who can provide tailored advice. Additionally, you may explore US Legal Forms for templates that can help you navigate the legal process effectively.
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