State of Rhode Island v. Piedmont Funding Corp.

This is an appeal from a judgment dismissing the plaintiffs complaint for lack of subject matter jurisdiction. The plaintiff alleged that the defendants, in selling insurance and investment programs, had violated the Deceptive Trade Practices Act (the Act), G.L. 1956 (1969 Reenactment) §6-13.1-1 et seq. The trial justice held that the transactions which were the subject of the complaint are exempted from the provisions of the Act by §6-13.1-4.

The action arises out of the sale of a leverage funding program in Rhode Island by defendant, Piedmont Funding Corporation. The program was established…