New York Laws
Article 21-A - Fraudulent Transactions in Securities
339-D - Transactions by Brokers and Dealers After Insolvency.

§ 339-d. Transactions by brokers and dealers after insolvency. Any
person, firm, association or corporation engaged in the business of
purchasing and selling as broker or dealer, stocks, bonds or other
evidences of debt of corporations, companies or associations who,
knowing that he or it is insolvent, accepts or receives from a customer
ignorant of such broker's or dealer's insolvency, money, stocks, bonds
or other evidences of debt belonging to the customer otherwise than in
liquidation of, or as security for, an existing indebtedness, is guilty
of a misdemeanor. Any person, firm, association or corporation shall be
deemed insolvent within the meaning of this section whenever the
aggregate of his or its property shall not, at a fair valuation, be
sufficient in amount to pay his or its debts.

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