Section 352-C. Prohibited acts constituting misdemeanor; felony

1.   It
  shall  be  illegal  and  prohibited   for   any   person,   partnership,
  corporation,  company,  trust  or  association, or any agent or employee
  thereof, to use or employ any of the following acts or practices:
    (a) Any fraud, deception, concealment, suppression, false pretense  or
  fictitious or pretended purchase or sale;
    (b)  Any  promise  or  representation as to the future which is beyond
  reasonable expectation or unwarranted by existing circumstances;
    (c) Any representation or statement which is false, where  the  person
  who  made  such representation or statement: (i) knew the truth; or (ii)
  with reasonable effort could have known the  truth;  or  (iii)  made  no
  reasonable effort to ascertain the truth; or (iv) did not have knowledge
  concerning the representation or statement made;
  where  engaged  in  to  induce  or  promote  the issuance, distribution,
  exchange, sale, negotiation or purchase within or from this state of any
  securities or commodities, as defined in section three hundred fifty-two
  of this article, regardless of whether issuance, distribution, exchange,
  sale, negotiation or purchase resulted.
    2. It shall be illegal and prohibited  for  any  person,  partnership,
  corporation,  company,  trust  or  association, or any agent or employee
  thereof, to engage in any  artifice,  agreement,  device  or  scheme  to
  obtain  money, profit or property by any of the means prohibited by this
  section.
    3. It shall be illegal and prohibited  for  any  person,  partnership,
  corporation,  company,  trust  or  association, or any agent or employee
  thereof, engaged in the  sale  of  any  securities  or  commodities,  as
  defined  in  section  three hundred fifty-two of this article, within or
  from the state of New York to represent that they are an  "exchange"  or
  use  the  word "exchange," or any abbreviation or derivative thereof, in
  its name or assumed name unless it is registered with the Securities and
  Exchange Commission as  a  national  securities  exchange,  pursuant  to
  section six of the Securities and Exchange Act of 1934, or unless it has
  been  designated  as  a contract market by the Commodity Futures Trading
  Commission, pursuant to section five of the Commodity Exchange Act.
    4.  Except  as  provided  in  subdivision  five  or  six,  a   person,
  partnership, corporation, company, trust or association, or any agent or
  employee  thereof, using or employing any act or practice declared to be
  illegal  and  prohibited  by  this  section,  shall  be  guilty   of   a
  misdemeanor.
    5.   Any   person,   partnership,   corporation,   company,  trust  or
  association, or any agent or employee thereof who intentionally  engages
  in  any  scheme constituting a systematic ongoing course of conduct with
  intent to defraud ten or more persons or to obtain property from ten  or
  more  persons  by  false  or  fraudulent  pretenses,  representations or
  promises, and so obtains property from one or more of such persons while
  engaged in inducing or promoting the issuance,  distribution,  exchange,
  sale,  negotiation  or  purchase  of  any  securities or commodities, as
  defined in this article, shall be guilty of a class E felony.
    6.  Any  person,   partnership,   corporation,   company,   trust   or
  association,  or any agent or employee thereof who intentionally engages
  in  fraud,  deception,  concealment,  suppression,  false  pretense   or
  fictitious  or  pretended  purchase  or  sale, or who makes any material
  false representation or statement with intent  to  deceive  or  defraud,
  while  engaged  in  inducing  or  promoting  the issuance, distribution,
  exchange, sale, negotiation or purchase within or from this state of any
  securities or commodities, as  defined  in  this  article,  and  thereby
  wrongfully  obtains  property  of a value in excess of two hundred fifty
  dollars, shall be guilty of a class E felony.