Tex. Gov't Code § 4001.058 · Subchapter B. DEFINITIONS
FRAUD; FRAUDULENT PRACTICE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) "Fraud" and "fraudulent practice" include:
(1) a misrepresentation of a relevant fact made in any manner;
(2) a promise, representation, or predication as to the future not made honestly and in good faith;
(3) an intentional failure to disclose a material fact;
(4) a direct or indirect gain, through the sale of a security, of an underwriting or promotion fee or profit, or of a selling or managing commission or profit, that is so gross or exorbitant as to be unconscionable; and
(5) a scheme, device, or other artifice to obtain a profit, fee, or commission described by Subdivision (4).
(b) Nothing in this section limits the full meaning of "fraud," "fraudulent," or "fraudulent practice" as applied or accepted in courts.
Notes and commentary — not statutory text
History
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/GV/htm/GV.4001.htm
- Text hash
- sha256 9e52492616991e6962c44bb49f2a535cff43dfff66e30f965a0f1dd90b7c140f
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.