Texas Government Code 4007.203 – Fraudulent Conduct; Offense
(a) A person commits an offense if:
(1) the person directly or indirectly:
(A) engages in any fraud or fraudulent practice;
(B) employs any device, scheme, or artifice to defraud;
(C) knowingly makes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading; or
(D) engages in any act, practice, or course of business that operates or will operate as a fraud or deceit on any person; and
(2) the applicable conduct is committed in connection with:
(A) the sale of, the offering for sale or delivery of, the purchase of, the offer to purchase, invitation of offers to purchase, invitations of offers to sell, or dealing in any other manner in any security, regardless of whether the transaction or security is exempt under Chapter 4005; or
(B) the rendering of services as an investment adviser or an investment adviser representative.
(b) An offense under this section is:
(1) a felony of the third degree, if the amount involved in the offense is less than $10,000;
(2) a felony of the second degree, if the amount involved in the offense is $10,000 or more but less than $100,000; or
(3) a felony of the first degree, if the amount involved is $100,000 or more.
Terms Used In Texas Government Code 4007.203
- Fraud: Intentional deception resulting in injury to another.
- Indictment: The formal charge issued by a grand jury stating that there is enough evidence that the defendant committed the crime to justify having a trial; it is used primarily for felonies.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) An indictment for an offense under this section may be brought only before the fifth anniversary of the date the offense was committed.