Wisconsin Jury Instruction - 4.4.3 Rule 10(b) - 5(c) Fraudulent Practice or Course of Dealing Stockbroker Churning - Violation of Blue Sky Law and Breach of Fiduciary Duty

• Category: Federal - Jury Instructions
• State: Multi-State
• Control #: US-11CF-4-4-3
• Format: Word; Rich Text

Description

This form contains sample jury instructions, to be used across the United States. These questions are to be used only as a model, and should be altered to more perfectly fit your own cause of action needs.

Wisconsin Jury Instruction — 4.4.3 Rule 10(b— - 5(c) Fraudulent Practice or Course of Dealing Stockbroker Churning — Violation of Blue Sky Law and Breach of Fiduciary Duty is a legal instruction used in Wisconsin courts to guide juries when determining liability in cases involving stockbroker churning, fraudulent practices, violation of Blue Sky Law, and breach of fiduciary duty. Stockbroker churning refers to the unethical practice where a broker excessively trades securities on behalf of a client to generate commission fees, without regard for the client's investment objectives or interests. This behavior often results in unnecessary fees, financial losses, and a breach of the broker's fiduciary duty to act in the best interest of their clients. Wisconsin Jury Instruction — 4.4.3 Rule 10(b— - 5(c) provides specific guidance to the jury when evaluating such cases. The instruction emphasizes that the defendant, usually a stockbroker, engaged in a fraudulent practice or course of dealing by churning the client's account. It further states that this behavior violated both Rule 10(b) of the Securities Exchange Act of 1934 and Rule 5(c) of the Blue Sky Law in Wisconsin. In cases involving stockbroker churning, violation of Blue Sky Law, and breach of fiduciary duty, the jury must consider several factors in determining liability. Some relevant keywords that may be associated with this instruction include: 1. Excessive trading: Evaluating whether the stockbroker excessively traded securities in the client's account, disregarding the client's best interest. 2. Commission fees: Analyzing the financial impact of excessive trades and the resulting commission fees on the client's investment portfolio. 3. Investment objectives: Assessing whether the broker considered the client's investment goals and risk tolerance when executing trades. 4. Blue Sky Law: Understanding the specific provisions of Wisconsin's Blue Sky Law and determining if the broker violated any of its regulations. 5. Rule 10(b): Examining the violation of Rule 10(b) of the Securities Exchange Act of 1934, which prohibits fraudulent practices in the securities' industry. 6. Breach of fiduciary duty: Evaluating whether the stockbroker breached their fiduciary duty by prioritizing personal gain over the client's best interest. Different variations or types of cases falling under this Wisconsin Jury Instruction may involve additional specific circumstances or laws, but the core elements of stockbroker churning, violation of Blue Sky Law, and breach of fiduciary duty remain the primary focus.