DANIEL B. HAMBY, JR. PLAINTIFF v. CLEARWATER CONSULTING CONCEPTS, LLLP; CCC HOLDINGS, LLC; LANCE TALKINGTON; and THEODORE C. SKOKOS, JR., DEFENDANTS/THIRD-PARTY PLAINTIFFS v. RUSSELL W. McADAMS, THIRD-PARTY DEFENDANT, 428 F. Supp. 2d 915

Summary

The investor entered into an agreement with the investment company and the related company and invested $256,000. The investor alleged, in part, that defendants sold securities in the State of Arkansas that were not registered as required by the Arkansas Security Act, Ark. Code Ann. § 23-42-101 et seq. Pursuant to Ark. Code Ann. § 23-42-106(a)(1) the investor sought rescission and the return of his investment. Defendants contended that they were not required to register the security under the Arkansas Security Act because the security was a "covered security" under federal law. Even though defendants had not filed a Form D with the Securities and Exchange Commission (SEC), defendants could still potentially obtain an exemption under 7 C.F.R. §§ 230.504 through 230.506. Thus, the investor had not shown that as a matter of law, defendants were liable under the Arkansas Security Act, Ark. Code Ann. §§ 23-42-101 and 23-42-501. The court likewise held that defendants were not entitled to ...