Criminal Defense Lawyers

The terms securities is a broad one. In general, this refers to something that can be bought and sold as part of the securities market such as stocks and bonds. Many people own stock in some way. They might buy stocks as part of their savings plan or own them as part of their company’s retirement plans. Some people work in finance and deal with securities as part of their everyday working life. The management of securities is essential in order to make sure that everything is being done as it should be done and all laws pertaining to securities are being followed at every turn.

Securities Fraud

Securities fraud is sometimes also called stock or investment fraud. This type of crime can happen when a company or individual deliberately engages in fraudulent actions and acts to deceive others in some way. For example, this type of fraud happens when a company or a person chooses to provide any kind of inaccurate information about a stock or other type of securities product. This type of crime also happens when someone avoids providing accurate information that might otherwise influence a person to purchase stocks. Securities fraud is a violation of state and federal laws.

There are many types of actions that can be considered securities fraud in some way. For example, if someone steals money that was entrusted to their care nd intended to be used for investment in the stock market, that theft is considered securities fraud. If company officials deliberately mislead investors about the health of the company as they bring out an initial public offering, that is also considered securities fraud. A company’s directors have a legal obligation to let the public know all about the finances of the company including the company’s sources of funding and income.

Reporting to Auditors

The American stock market is heavily regulated. Each day, auditors examine a company’s records. Their goal is to ensure that all necessary procedures are being followed when it comes to issues such as reporting all sources of income and making sure that investors are being access to promises such as quarterly dividends. Company officials are required to maintain the company’s books and adhere the regulations imposed by federal regulations. Violations of such regulations can result in the company officials being charged under several laws including the far reaching federal securities act of 1933.

There are several other types of securities fraud. Insider trading is when someone such as a high ranking company official or friend of such an officer uses information they have that is not available to the general public to their own advantage. A person can also be charged with this form of securities fraud if they engage in trading and fail to inform officials of their actions. Failure to report securities trade is considered a violation of tax laws as it may be a form of trading without paying the required income taxes on any capital gains. This is also considered securities fraud.

Other Actions

Other kinds of actions can also be considered securities fraud. A classic form of securities fraud is what is known as a Ponzi scheme. In this type of behavior, investors use the funds they get to pay out previous entrants into the fraud. Many people have heard of the actions of Bernie Madoff. Madoff was at the head of the single largest Ponzi scheme every prosecuted in the United States. His actions brought him a long jail term. They also brought massive losses to all those who invested in his work,

Company officials can also be accused of misconduct by the federal or local government if they falsify financial records. An accountant for the company may act on their own or in concert with others to create false records for investors and federal investigators. For example, if the company is not profitable overall or suffers losses during a given quarter, company officials can choose to cover it up. This is considered a serious form of securities fraud.

Officials estimate this form of fraud is quite common in the United States. Each year, Americans and investors from abroad are defrauded to the tune of billions. This is why those charged with investigating this form of criminal activity take it very seriously. The same should be said of anyone or any company charged with such violations. Any charge of securities fraud is a very serious matter. Even the hint that officials at the company are not being above board with their investors will often create problems with the company’s overall finances. This can lead to issues in the longer term that can ultimately impact the company’s ability to function. That is why is hugely important to have skilled legal help on your side right now.