Internet Securities Fraud
How Has the Internet Impacted Securities Fraud?
The Internet has provided plenty of benefits to investors in the form of vast and up-to-date information, as well as a resource for quick communication with an investor's brokerage or other securities holding company. However, the Internet has also paved the way for various forms of securities fraud.
It is not uncommon for investors to receive advertisements for "investment opportunities" through websites, news groups, chat rooms, message boards, and unsolicited emails. These advertisements generally have to do with supposed issuers offering investors cheap shares of stock for sale at rock-bottom prices, in what will be a sure investment with high growth and profit potential. These advertisements are generally false, and many times if the investor does send in money to buy shares of the stock, the issuer simply takes the money and runs.
It is not as though these types of securities frauds were born along with the Internet. These same scams are perpetrated through ads in regular mail along with telemarketers offering people great investment opportunities. The Internet simply provided another means of communicating with a wide base of investors in a cheap and efficient manner.
Is Anyone Else Besides Issuers Able to Commit Securities Fraud via the Internet?
It is not only fraudulent issuers of stock that are enabled by the Internet to commit securities fraud, but everyday investors as well. The Internet provides not only easy access to information, but an easy way to disseminate information.
One might think that it would take a group of influential investors to engage in illegal market manipulation because of the cost and resources that are needed to spread false information about a company to the general public. However, with the use of the Internet, a single average investor has at his fingertips the ability to falsely represent a traded company.
How Can I Reduce the Risk of Being a Victim in One of These Scams?
The most important thing is to be a prudent investor by researching any public company you are considering investing in. Look at the company's financial statements, the balance sheets, and the general goals of the company as well as its management team.
There is never a sure bet in investing, no matter how much research you have done or how infallible an opportunity appears. If an issuer promises profits and financial success, this should raise a red flag in your mind.
What Should I Do if I Have Been Accused of Securities Fraud?
If you have been accused of securities fraud you should immediately contact a criminal defense attorney who has experience in securities fraud. Your lawyer can advise you of your rights and any potential defenses you may have to fight the charge, as well as navigate you through the complex criminal legal system. You may need to consider a Securities Fraud Lawyer.
Consult a Lawyer - Present Your Case Now!
Last Modified: 10-14-2010 04:08 PM PDT
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