Wis JI-Criminal 2904

Statutory Definition of the Crime

Section 551.501(2) of the Wisconsin Statutes is violated by a person who willfully

makes an untrue statement of material fact, or omits to state a material fact necessary to

make the statements made not misleading, in connection with the offer, sale or purchase

of any security in this state.

State's Burden of Proof

Before you may find the defendant guilty of this offense, the State must prove by

evidence which satisfies you beyond a reasonable doubt that the following three elements

were present.

Elements of the Crime That the State Must Prove

1. The item [offered] [sold] was a security as defined by Wisconsin law.

A [insert applicable term from § 551.102(28)] is a security. 1

2. The defendant [made an untrue statement of material fact] [omitted to state a

material fact necessary to make the statements made not misleading] in

connection with the offer, sale or purchase of a security in this state. 2

["Offered" includes every attempt or offer to sell or dispose of a security or

interest in a security for value.] 3

["Sold" includes every sale, disposition or exchange, and every contract of

sale of, or contract to sell, a security or interest in a security for value.] 4

A fact is a "material fact" if it could be expected to influence a reasonable

investor in making a decision whether to purchase an investment. 5

[A fact is also a "material fact" if the maker of the representation knows that

the investor regards the matter as important in making a decision whether to

purchase an investment, even though a reasonable investor would not regard it as

important.] 6

3. The defendant acted willfully.

"Wilfully" requires that the defendant knowingly [made an untrue

statement of material fact] [omitted to state a material fact necessary to make

the statements made not misleading] in connection with the offer, sale or

purchase of a security. Proof of intent to violate the law or knowledge that

the law was being violated is not required. 7

Deciding About Knowledge

You cannot look into a person's mind to find knowledge. Knowledge must be found,

if found at all, from the defendant's acts, words, and statements, if any, and from all the

facts and circumstances in this case bearing upon knowledge.

Jury's Decision

If you are satisfied beyond a reasonable doubt that all three elements of this offense

have been proved, you should find the defendant guilty.

If you are not so satisfied, you must find the defendant not guilty.

ADD THE FOLLOWING 8 IF THE DEFENDANT HAS BEEN CHARGED

UNDER § 551.508(1m): THE VICTIM WAS AT LEAST 65 YEARS OF AGE

WHEN THE CRIME WAS COMMITTED:

If you find the defendant guilty, you must consider the following question:

Was (name of victim) at least 65 years of age when the crime was

committed?

Before you may answer the question "yes," the State must satisfy you beyond a

reasonable doubt that (name of victim) was at least 65 years of age when the crime was

committed.

If you are not so satisfied, you must answer this question "no."