Purpose of Illinois Securities Law of 1953 is to protect innocent persons who might be induced to invest their money in speculative enterprises over which they have little control. Indexed annuities in question are annuities issued by insurance companies authorized to transact business in Illinois, and thus are not securities under Illinois law. Because Plaintiff acted both as a registered investment adviser under the Act and as a licensed insurance producer under the Insurance Code, he was subject to legal duties under each regulatory regime, including the Act's antifraud provisions. Secretary of State's decision, that Plaintiff defrauded clients by recommending sale of indexed annuities, is arbitrary, capricious, and against manifest weight of evidence Department of Securities failed to set forth any applicable rules or written criteria to evaluate insurance annuities to indicate expertise in that area. (HARRIS and HOLDER WHITE, concurring.)
Illinois Appellate Court
Civil Court
Illinois Securities Law