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Last Modified on Oct 29, 2018
Imagine you’re an investment professional who has been working in the industry for two decades. Over the years, you’ve built an excellent career and reputation. However, a recent, unjustified accusation is threatening to destroy everything you’ve worked so hard to create. You’ve been accused of securities fraud.
Securities fraud relates to misrepresentation, fraud and unlawful actions associated with the purchase and sale of investments. Charges related to securities fraud are not particularly uncommon when someone works in the securities, investment and banking industries. Just because you have been accused of this crime, however, does not mean that a court of law will find you guilty.
Here are three of the most common types of securities fraud:
Corporate-level securities fraud: Sometimes securities fraud happens on the corporate level when a company misrepresents or falsifies financial information that it reports to shareholders. There have been many documented cases of companies “cooking the books” to make their businesses appear more profitable than they are, keep investors interested and prevent shareholders from wanting to sell out of the stock. Because it involves misrepresentation and fraud, this kind of behavior is highly unlawful.
