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.

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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)

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.

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.

Quick facts

  • Jurisdiction: New York State
  • Key Focus: Financial fraud investigations
  • Legal Rights: Limited right to counsel and self-incrimination
  • Enforcement: New York Attorney General

Key takeaways