Securities Fraud

Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws. Offers of risky investment opportunities to unsophisticated investors who are unable to evaluate risk adequately and cannot afford loss of capital is a central problem.

Securities fraud can also include outright theft from investors (embezzlement by stockbrokers), stock manipulation, misstatements on a public company's financial reports, and lying to corporate auditors. The term encompasses a wide range of other actions, including insider trading, front running and other illegal acts on the trading floor of a stock or commodity exchange.

Read more about Securities FraudPervasiveness of Securities Fraud, Characteristics of Victims and Perpetrators, Other Effects of Securities Fraud, Penny Stock Regulation, Related Subjects

Other articles related to "securities, securities fraud, fraud":

Marc Stuart Dreier - Criminal Fraud Case - Kosta S. Kovachev
... lost his broker's license from the National Association of Securities Dealers after being implicated in a $28 million Ponzi scheme ... On November 2, 2009, he pleaded guilty to commit securities fraud and wire fraud, as well as a wire fraud charge, and admitting to impersonating an ... On April 22, 2009, Kovachev had been arraigned on new charges conspiracy to commit securities fraud, securities fraud and wire fraud, adding a forfeiture allegation seeking to ...
Securities Fraud - Related Subjects
... Madoff investment scandal Bernie Madoff Microcap stock fraud Operation Broken Trust Penny Stocks Private Securities Litigation Reform Act Pyramid scheme Sarbanes-Oxley Act Taylor, Bean Whitaker, top-10 U.S ... business following multi-billion-dollar fraud revelations Trading Places United States Securities and Exchange Commission White-collar crime Worldcom ...
Scienter As Element of Securities Fraud Claim
... In the United States, in order to prevail in a securities fraud claim under Section 10(b) of the Securities Exchange Act of 1934, a plaintiff must allege and prove that the defendant acted with scienter ... The Private Securities Litigation Reform Act of 1995 added the requirement that a plaintiff must plead facts giving rise to a "strong inference" of scienter ... the Court defined the standard that the plaintiff should meet in order to proceed with a securities fraud litigation a complaint must show "cogent and compelling evidence" of ...
Gen Re - History - AIG Securities Fraud
... AIG came under market pressure, and admitted it had undertaken what could be construed as securities fraud ... agreed to turn state's witness for the Department of Justice and Securities and Exchange Commission, in agreement for a plea bargain ... then pleaded guilty to conspiring to commit securities fraud, resultantly facing a sentence of up to five years in prison and $250,000 in fines ...
Madoff Investment Scandal - Charges and Sentencing - Criminal Complaint
... much investors deposited into the firm." He was originally charged with a single count of securities fraud and faced up to 20 years in prison, and a fine of $5 million if ... Investigation (FBI) on December 11, 2008, on a criminal charge of securities fraud ... Madoff Investment Securities LLC ("BMIS")', the order to freeze all activities also forbade trading from the companies Madoff Securities International Ltd ...

Famous quotes containing the word fraud:

    The disfranchisement of a single legal elector by fraud or intimidation is a crime too grave to be regarded lightly.
    Benjamin Harrison (1833–1901)