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.
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.
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
If you are accused of violating federal or state securities fraud statutes, you should speak to an attorney 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.
Last Modified: 09-19-2016 11:56 AM PDTLaw Library Disclaimer
We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.