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Investment fraud is a serious problem for today's investors. Remember the collapse of major corporations like Enron, Tyco, and WorldCom? Millions of investors lost hundreds of thousands of dollars due to securities violations committed by accounting firms, corporations, and brokers.

Securities fraud typically stems from one of three places. Stockbroker fraud is one example of how investors are misled. Another form can be committed by corporations and the the third is fraud committed by stock analysts. How will you know if you're a victim of defraudment? Read this guid to discover some of the ways in which you can be hurt by deception.

If you invested with Merrill Lynch or other brokerage or Investment firms and believe you were mislead about your options or even defrauded, you may be able to recover your lost investments through arbitration or lawsuits. People of all ages have been victimized Whether you’re just starting out or if you’re enjoying your retirement years, nobody should have to question the tips from their investment firm.

The Securities and Exchange Commission (SEC), which governs investment and brokerage fraud, prohibits investment banks, brokerage firms, brokers, and dealers from making statements, omitting facts, or engaging in “fraudulent or manipulative acts and practices, in connection with the purchase or sale of securities.” Securities firms are not allowed to mislead the public, thereby defrauding investors.

Unfortunately, a number of major investment banking firms have come under recent fire for allegedly issuing intentionally inaccurate stock reports. Conflicts of interest and analysts’ desire to earn bonuses have been cited as possible explanations. As a result, the SEC has already issued new rules for investment banking firms and analysts, with more regulations possibly forthcoming.