Which of the following would be considered fraud under the Uniform Securities Act?
A) An agent has a large number of clients in a security in which she trades frequently for her own account with no attempt to create an inaccurate impression of trading volume.
B) An agent knowingly sold a nonregistered security because he thought it would eventually become registered.
C) Using a private subscription to an online Internet legal records service, an agent discovers that a company is about to file for bankruptcy and immediately calls her clients recommending they liquidate their holdings.
D) An agent knowingly sells securities in a publicly traded company in which his family has a beneficial ownership.
Answer: An agent knowingly sold a nonregistered security because he thought it would eventually become registered.