Securities fraud can be described as deceptive practices in the stock and commodity markets. Generally, securities fraud occurs when investors are enticed to part with their money based on untrue statements. Securities Fraud is illegal. Securities fraud may be committed by, among others, investors, employees of a brokerage houses, corporate executives or their shareholders, or by other market participants. Securities Fraud destroys our confidence in the securities and investments markets and casts doubt over investments into legitimate companies. Therefore, it is very important to identify and report these crimes. The FBI does not advocate citizens acting on their own to investigate criminal activity. Rather, we strongly encourage citizens to take action by notifying the FBI or other law enforcement agencies whenever they believe a crime may have occurred.
Examples of securities fraud:
- Providing false information on a company financial statement.
- Providing false information on Securities and Exchange Commission (SEC) filings.
- Lying to the company auditors.
- Insider trading.
- Stock manipulation schemes.
- Broker embezzlements.
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Securities Fraud

