“Security” in securities fraud refers to many different investment types like bank notes, corporate stocks, investment contracts, municipal bonds, and others.
Securities fraud happens when an individual who is involved in these kinds of investments steal, scheme, cheat, or lie to try and get financial advantage from these investments. It could likewise include theft from various types of securities accounts as well as manipulating the market.
Securities Fraud Law
In general, the most common and widely prosecuted securities fraud schemes involve an organization, company, or private individual that issues securities such as stocks and then sell, purchase or trade these securities fraudulently.
The Securities Exchange Act of 1934 and the Securities Act of 1933 are the two primary laws under which the government prosecutes securities fraud crimes, but other more related regulations and laws also apply.
Federal and state courts consider securities fraud a white-collar crime. Securities brokers, professional financial advisors or analysts, government agents, or agencies commonly commit it. The Securities and Exchange Commission of SEC is the top authority that handles securities fraud prosecutions.
However, all states have their laws on this, as well as their own securities commission. Additionally, although either federal or state courts could prosecute any securities fraud crime, they suffer prosecution on the federal level, warns a top white-collar crime attorney here in Houston.
Charged with Securities Fraud?
This white-collar crime usually involves complex facts and lengthy investigations. If they charge you with this, you stand to face hefty fines and prison time. A conviction of securities fraud could likewise destroy your career and alter your whole life as you know it.
If you are under investigation for possible securities fraud or are recently facing charges securities fraud, you must consult with an experienced white-collar crime lawyer before making any statements to investigators or the police.
Your attorney will review the circumstances surrounding the charge against you and offer practical insights based on all related laws and complex regulations that apply to securities transactions.