SECTIONS 25400-25404

25400.  It is unlawful for any person, directly or indirectly, inthis state: (a) For the purpose of creating a false or misleading appearanceof active trading in any security or a false or misleading appearancewith respect to the market for any security, (1) to effect anytransaction in a security which involves no change in the beneficialownership thereof, or (2) to enter an order or orders for thepurchase of any security with the knowledge that an order or ordersof substantially the same size, at substantially the same time and atsubstantially the same price, for the sale of any such security, hasbeen or will be entered by or for the same or different parties, or(3) to enter an order or orders for the sale of any security with theknowledge that an order or orders of substantially the same size, atsubstantially the same time and at substantially the same price, forthe purchase of any such security, has been or will be entered by orfor the same or different parties. (b) To effect, alone or with one or more other persons, a seriesof transactions in any security creating actual or apparent activetrading in such security or raising or depressing the price of suchsecurity, for the purpose of inducing the purchase or sale of suchsecurity by others. (c) If such person is a broker-dealer or other person selling oroffering for sale or purchasing or offering to purchase the security,to induce the purchase or sale of any security by the circulation ordissemination of information to the effect that the price of anysuch security will or is likely to rise or fall because of marketoperations of any one or more persons conducted for the purpose ofraising or depressing the price of such security. (d) If such person is a broker-dealer or other person selling oroffering for sale or purchasing or offering to purchase the security,to make, for the purpose of inducing the purchase or sale of suchsecurity by others, any statement which was, at the time and in thelight of the circumstances under which it was made, false ormisleading with respect to any material fact, or which omitted tostate any material fact necessary in order to make the statementsmade, in the light of the circumstances under which they were made,not misleading, and which he knew or had reasonable ground to believewas so false or misleading. (e) For a consideration, received directly or indirectly from abroker-dealer or other person selling or offering for sale orpurchasing or offering to purchase the security, to induce thepurchase or sale of any security by the circulation or disseminationof information to the effect that the price of such security will oris likely to rise or fall because of the market operations of any oneor more persons conducted for the purpose of raising or depressingthe price of such security.25401.  It is unlawful for any person to offer or sell a security inthis state or buy or offer to buy a security in this state by meansof any written or oral communication which includes an untruestatement of a material fact or omits to state a material factnecessary in order to make the statements made, in the light of thecircumstances under which they were made, not misleading.25402.  It is unlawful for an issuer or any person who is anofficer, director or controlling person of an issuer or any otherperson whose relationship to the issuer gives him access, directly orindirectly, to material information about the issuer not generallyavailable to the public, to purchase or sell any security of theissuer in this state at a time when he knows material informationabout the issuer gained from such relationship which wouldsignificantly affect the market price of that security and which isnot generally available to the public, and which he knows is notintended to be so available, unless he has reason to believe that theperson selling to or buying from him is also in possession of theinformation.25403.  (a) Every person who with knowledge directly or indirectlycontrols and induces any person to violate any provision of thisdivision or any rule or order thereunder shall be deemed to be inviolation of that provision, rule, or order to the same extent as thecontrolled and induced person. (b) Any person that knowingly provides substantial assistance toanother person in violation of any provision of this division or anyrule or order thereunder shall be deemed to be in violation of thatprovision, rule, or order to the same extent as the person to whomthe assistance was provided. (c) It shall be unlawful for any person directly or indirectly todo any act or thing which would be unlawful for that person to dounder any provision of this division or any rule or order thereunderthrough or by any other person. (d) Nothing in this section shall be construed to limit the powerof the state to punish any person for any conduct which constitutes acrime under any other statute.25404.  (a) It is unlawful for any person to knowingly alter,destroy, mutilate, conceal, cover up, falsify, or make a false entryin any record, document, or tangible object with the intent toimpede, obstruct, or influence the administration or enforcement ofthis division. (b) It is unlawful for any person to knowingly make an untruestatement to the commissioner during the course of licensing,investigation, or examination, with the intent to impede, obstruct,or influence the administration or enforcement of any provision ofthis division.