§ 17-4-506 — Misrepresentations concerning registration or exemption

(a) The filing of an application for registration, a
registration statement, a notice filing under this act, the
registration of a person, the notice filing by a person, or the
registration of a security under this act does not constitute a
finding by the secretary of state that a record filed under this
act is true, complete, and not misleading. The filing or
registration or the availability of an exemption, exception,
preemption, or exclusion for a security or a transaction does
not mean that the secretary of state has passed upon the merits
or qualifications of, or recommended or given approval to, a
person, security, or transaction.
(b) It is unlawful to make, or cause to be made, to a
purchaser, customer, client, or prospective customer or client a
representation inconsistent with this section.