Hays v. Ellrich

In reliance on the advice of her investment advisor, Morgan Financial Advisors, Inc. (MFA), Plaintiff invested three-quarters of her retirement savings in a hedge fund that became insolvent, resulting in the loss of her entire investment. Plaintiff filed suit against MFA and its sole owner and officer (collectively, Defendants) alleging that Defendants violated the Massachusetts Uniform Securities Act (Act), committed fraud, and breached their fiduciary duty to her. The trial judge concluded that Defendants were liable under the Act and entered judgment in Plaintiff’s favor. The Supreme Judicial Court affirmed, holding (1) the district judge did not err in finding that Defendants were “sellers” of securities under the Act; (2) Plaintiff timely filed her action under the Act; and (3) the evidence was sufficient to support the convictions. View "Hays v. Ellrich" on Justia Law