DISCLOSURE OF CERTAIN CONVICTIONS, PLEAS, JUDGMENTS, ORDERS, BANKRUPTCIES, AND REORGANIZATIONS

(a) With respect to the seller and each person identified under Section 302.151(11) or (13), a registration statement must identify each person: (1) who has been convicted of or pleaded nolo contendere to: (A) an offense involving an alleged violation of this chapter; or (B) fraud, theft, embezzlement, fraudulent conversion, or misappropriation of property; (2) against whom a final judgment or order has been entered in a civil or administrative action, including a stipulated judgment or order, in which the complaint or petition alleged: (A) acts constituting: (i) a violation of this chapter; or (ii) fraud, theft, embezzlement, fraudulent conversion, or misappropriation of property; (B) the use of false or misleading representations in an attempt to sell or otherwise dispose of property; or (C) the use of unfair, unlawful, or deceptive business practices; (3) who is subject to an injunction or restrictive court order relating to business activity as the result of an action brought by a federal, state, or local public agency, including an action affecting a vocational license; or (4) who, during the previous seven tax years: (A) has filed in bankruptcy; (B) has been adjudged a bankrupt; (C) has been reorganized because of insolvency; or (D) has been a principal, director, officer, trustee, or general or limited partner of, or had management responsibilities for, a corporation, partnership, joint venture, or other business entity that has filed in bankruptcy, been adjudged a bankrupt, or been reorganized because of insolvency while the person held that position or on or before the first anniversary of the date on which the person last held that position. (b) For each person identified under Subsection (a)(1), (2), or (3), the statement must disclose: (1) the court that received the plea of nolo contendere or the court or administrative agency that rendered the conviction, judgment, or order; (2) the docket number of the matter; (3) the date the plea of nolo contendere was received or the date of the conviction, judgment, or order; and (4) the name of any government agency that brought the action resulting in the plea or the conviction, judgment, or order. (c) For each person identified under Subsection (a)(4), the statement must disclose: (1) the name and location of the person filing in bankruptcy, adjudged a bankrupt, or reorganized because of insolvency; (2) the date of the filing, judgment, or reorganization order; (3) the court having jurisdiction; and (4) the docket number of the matter.