Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws. Offers of risky investment opportunities to unsophisticated investors who are unable to evaluate risk adequately and cannot afford loss of capital is a central problem. Securities Fraud can also be committed by independent individuals (such as by engaging in insider trading).
BREAKING DOWN Securities Fraud
Allegations of securities fraud are investigated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority
(FINRA). The crime can carry both criminal and civil penalties, resulting in imprisonment and fines. Some common types of securities fraud include manipulating stock prices, lying on SEC filings, and committing accounting fraud. Some famous examples of securities fraud are the Enron, Tyco, Adelphia and WorldCom scandals.
Contact Ms. Stoneman if you think you've been a victim of securities fraud.
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