Securities Fraud Explained
Securities fraud is a very serious white-collar crime that is becoming more common and can have serious implications. It is important to be aware of securities fraud so that you know what steps can be taken to avoid falling victim as well as know what to do if you are ever a victim of securities fraud. Keep reading for all that you need to know about securities fraud.
What is Securities Fraud?
So, what exactly is securities fraud? Essentially, this involves misrepresenting the information that is used by investors use to make investment decisions. It is also known as stock or investment fraud and is a crime that is used to make profit at the expense of others. This can involve providing false information, withholding information or providing inside information to dupe investors.
Types of Securities Fraud
It is also important to understand that there are many different types of securities fraud in today’s day and age. The FBI states that securities fraud can include:
- Ponzi schemes
- Pyramid schemes
- Foreign currency fraud
- Broker embezzlement
- Advanced fee schemes
- High-yield investment fraud
- Hedge-fund related fraud
- Insider trading
These are all very serious types of securities fraud that can have a significant financial impact and can be orchestrated both by individuals as well as financial professionals. If you feel that you have been fed false information or you have been tricked into making a financial decision, you could make a securities fraud claim and seek compensation.
What to do if You Are Victim
So, what should you do if you think that you are a victim of securities fraud? The best step to take is to get in touch with white-collar crime lawyers that will be able to work on your behalf and seek the best possible outcome. These are cases that can be highly complex, which means that it is important to have an expert in your corner. In addition to hiring the services of a white-collar crime solicitor, you should also collect as much information as you can including receipts, emails and any documents given to you by the individual or organization. It is likely that your claim will proceed in arbitration but some cases go to court.
Securities fraud is a very serious white collar crime and one that can have major financial ramifications for individuals. There are many different types of securities fraud, but generally, this will be an organization or individual that looks to trick investors and encourage them into making some kind of financial decision that will benefit the individual or organization. It is important to be aware of what the different types of securities fraud there are as well as know what to do if you think that you are a victim.
