Securities fraud is any fraud used in connection with the sale of a security. It is similar to spoofing. The law is generally intended to prevent any one from using a scheme to defraud, make untrue statements, or fail to make a statement that deceives investors. It can also include theft from manipulation of the market, and theft from securities accounts.
How Can an Investor Make a Claim?
In order to have a claim for securities fraud, an investor must rely on information given and they must suffer some type of harm. Additionally, the fraud must affect interstate commerce to fall within federal securities fraud laws, but this can be as simple as giving information over the telephone or internet. Additionally, individual states may have their own securities fraud laws that apply.
How Is Securities Fraud Prosecuted?
Securities fraud is prosecuted under civil and administrative actions brought by the Securities and Exchange Commission (SEC). Criminal proceedings are brought by the United States Department of Justice. Additionally, most states have adopted “blue sky” laws that are similar to federal laws, so it is possible to be convicted by both the federal and state government for securities fraud
Should I Consult an Attorney?
If you are accused of violating federal or state securities fraud statutes, you should speak to a securities lawyer or a financial lawyer to learn more about your rights, your defenses, and the complicated legal system.
If you have been a victim of securities fraud, you should contact the SEC or the U.S Department of Justice, as well as your state’s Department of Justice. If there is sufficient evidence, these agencies may prosecute the person who committed the securities fraud against you.