N.Y. General Business Law § 351: Acts prohibited; penalty for violation

§ 351. Acts prohibited; penalty for violation. Any person,

copartnership, firm, association or corporation, whether acting in his,

their or its own right or as the officer, agent, servant, correspondent

or representative of another, who shall: 1. Make or offer to make, or

assist in making or offering to make any contract respecting the

purchase or sale, either upon credit or margin, of any securities or

commodities, including all evidences of debt or property and options for

the purchase thereof, shares in any corporation or association, bonds,

coupons, scrip, rights, choses in action and other evidences of debt or

property and options for the purchase thereof or anything movable that

is bought and sold, intending that such contract shall be terminated,

closed or settled according to, or upon the basis of the public market

quotations of or prices made on any board of trade or exchange or market

upon which such commodities or securities are dealt in, and without

intending a bona fide purchase or sale of the same; or,

2. Makes or offers to make or assists in making or offering to make

any contract respecting the purchase or sale, either upon credit or

margin, of any such securities or commodities intending that such

contract shall be deemed terminated, closed and settled when such market

quotations of or such prices for such securities or commodities named in

such contract shall reach a certain figure, without intending a bona

fide purchase or sale of the same; or,

3. Makes or offers to make, or assists in making or offering to make

any contract respecting the purchase or sale, either upon credit or

margin of any such securities or commodities, not intending the actual

bona fide receipt or delivery of any such securities or commodities, but

intending a settlement of such contract based upon the difference in

such public market quotations of or such prices at which said securities

or commodities are, or are asserted to be, bought or sold; or,

4. Shall, as owner, keeper, proprietor or person in charge of, or as

officer, director, stockholder, agent, servant, correspondent or

representative of such owner, keeper, proprietor or person in charge of,

or as officer, director, stockholder, agent, servant, correspondent, or

representative of such owner, keeper, proprietor or person in charge, or

of any other person, keep, conduct or operate any bucket shop, as

hereinafter defined; or knowingly permit or allow or induce any person,

copartnership, firm, association or corporation whether acting in his,

their or its own right, or as the officer, agent, servant, correspondent

or representative of another to make or offer to make therein, or to

assist in making therein, or in offering to make therein, any of the

contracts specified in any of the three preceding subdivisions of this

section.

Shall be guilty of a felony. The prosecution, conviction and

punishment of a corporation hereunder shall not be deemed to be a

prosecution, conviction or punishment of any of its officers, directors

or stockholders.