Intersection Between Common Law Fraud And The Martin Act

A new decision of the Appellate Division, First Department (Board of Mgrs. of the Latitude Riverdale Condominium v 3585 Owner, LLC, 2021 NY Slip Op 06072 (1^st Dep't Decided Nov. 9, 2021), has triggered a discussion of the intersection between common law fraud claims and the New York State Martin Act ...

The Martin Act

A so-called "blue sky law," Article 23-A of New York's General Business Law, commonly referred to as the Martin Act, is a statute that empowers New York's Attorney General to prosecute a wide range of alleged securities-related offenses. Section 352-c prohibits "any person, partnership, corporation, company, trust or association, or any agent or employee thereof," from engaging in a variety of fraudulent practices in connection with the "issuance, distribution, exchange, sale, negotiation or purchase within or from [New York] of any securities or commodities." 123-A N.Y. Gen. Bus. Law §352-c. Unlike common law fraud, Section 352-c does not require