[2] Passed in 1921, it grants the Attorney General of New York expansive law enforcement powers to conduct investigations of securities fraud and bring civil or criminal actions against alleged violators of the Act.
[6] In 1925, Albert Ottinger became the first New York Attorney General to make use of the Act in high-profile cases, ultimately using it to shut down the Consolidated Stock Exchange.
[6] Ultimately, Merrill settled, agreeing to pay a $100 million fine and change the way its analysts are paid to head off possible criminal charges that it misled investors with tainted stock research.
[6] Spitzer's successor, Eric Schneiderman, has continued to aggressively use the Martin Act against high-profile companies and Wall Street Banks.
[4] The Martin Act has been interpreted to prohibit all deceitful practices, as well as false promises, related to the offer, sale, or purchase of securities and commodities within or from New York.
[2] Notably, to secure a conviction, the state is not required to prove scienter (except in connection with felonies) or an actual purchase or sale or damages resulting from the fraud.
The Act also permits the Attorney General to issue subpoenas to compel attendance of witnesses and production of documents deemed relevant or material to an investigation.
In 1926, the New York Court of Appeals held in People v. Federated Radio Corp. that proof of fraudulent intent was unnecessary for prosecution under the Act.