Securities fraud is a form of white-collar crime that often involves trading stocks, bonds, or other investments in an illegal manner. This can include insider trading information to profit on the stock exchange, misrepresenting material facts while selling securities to investors, and more.
Investment firms have a legal and ethical duty to their clients to protect them from fraud. With securities fraud costing investors billions of dollars each year, it is essential that financial professionals understand the laws that regulate the industry.
What are the penalties for securities fraud?
Securities fraud, also known as investment fraud, is a serious offense. It involves any kind of deception used to manipulate the stock market or take advantage of investors. The securities trade is regulated by agencies at the federal level, as well as by the state of Louisiana.
People convicted of securities fraud can face serious consequences such as hefty fines and long-term prison sentences. According to federal law, those found guilty in a criminal case can be fined up to $5 million and spend up to 20 years in jail.
The government has been persistent in prosecuting securities fraud. In the wake of high-profile cases such as Enron, WorldCom and Bernie Madoff, investigative authorities have implemented stricter laws to punish those found guilty of this crime.
If you’ve been accused of securities fraud, the first thing you should do is seek legal representation. Finding someone who understands securities litigation and can take immediate steps to protect your rights and interests is essential. They can review the facts of your case and help you develop a strong defense strategy.