Securities fraud (also known as investment fraud or stock fraud) is a serious white-collar crime. These acts involve providing misleading or false information to investors to encourage them to purchase or sell. This violates security laws and often results in loss for the investor. Sometimes securities fraud involves theft from investors through embezzlement, tampering with financial reports and other illegal actions.
There are a variety of illegal activities that are considered securities fraud:
- Foreign Currency Fraud
- Broker Embezzlement
- Broker Embezzlement
- High Yield Investment Fraud
- Late Day Trading
- Pyramid Schemes
- Hedge Fund Related Fraud
- Ponzi Schemes
- Advanced Fee Schemes
These scenarios are usually presented to investors as safe and easy investment opportunities. They generally offer high return with little risk. These opportunities are often “too good to be true” and are appealing to investors since it’s easy money. If the opportunities are presented by a professional and seemingly knowledgable source, it seems like a pretty safe gamble for investors. Insider trading and front running are other terms commonly associated with this type of fraud. The instances of fraud continues to grow and new and different schemes are always being discovered.
For those who suspect they have fallen victim to a form of securities fraud, they need to alert authorities immediately. This ensures the best possible chance of recovering any lost investments. These cases can be complex and it can take some time to sort out who is involved, what their process has been, and where you money is. It is important for investors to educate themselves on the signs of possible fraud. They should get as much information as possible prior to investing and keep close tabs on their investment at all times.
If you have been involved in securities fraud and find yourself faced with criminal charges, you will need to seek professional legal representation immediately. An experienced criminal defense attorney understands your rights and will be able to help you keep a clean record and stay out of custody. Brian J Smith can evaluate your case and back you with solid experience and a winning record.