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Securities Fraud

A type of serious white-collar crime in which a person or company, such as a stockbroker or a brokerage firm,  a corporation or investment bank, misrepresents information that investors use to make decisions. Securities Fraud can also be committed by an individual usually by being involved in insider trading.  The types of misrepresentation involved in this crime include providing false information, withholding key information, offering bad advice, and offering or acting on inside information.

Allegations of securities fraud are investigated by the Securities and Exchange Commission (SEC). The crime can carry both criminal and civil penalties, resulting in imprisonment and fines. Some common types of securities fraud include accounting fraud, fixing stock prices, and falsifying on SEC filings. Enron is probably the most well known example of securities fraud.

Types of securities fraud include:

  • Corporate misconduct

  • Ponzi schemes

  • Dummy corporations

  • Internet fraud

  • Insider trading

Corporate Misconduct:

Unfortunately, today there are still con artists who run corporations with the resources and know-how to defraud millions of American families. These brokers can hide behind big legal teams and that can make fighting back difficult for an individual. For this reason The Sheena Law Firm focuses on this tricky area of consumer law.

We have a strong investigative team that has the  experience to get the information quickly, review it thoroughly, and assess it carefully. Our skilled consumer fraud unit includes forensic and legal professionals who secure and analyze thousands of pages of financial and corporate records to uncover fraudulent practices.

If you or family has been the victim of corporate misconduct or abuse, call Sheena Law Firm today and talk to an attorney.

Ponzi schemes:

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation.   A Ponzi scheme may start out as legitimate, such as a hedge fund, but once it starts losing money or can not pay the promised returns, the promoter begins falsifying documents and lying to investors which can continue to snowball. 

The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. To continue the high returns requires an ever-increasing flow of money from new investors to keep the scheme going.

Dummy corporations

A dummy corporation is created to act or cover for another company.  It usually has the appearance of being real and may even have employees, but can not function alone.   The goal of a dummy corporation can be to conceal true ownership and/or avoid taxes. A dummy corporation is one way to fix the books in a dishonest attempt to hide the true financial status of a company.

Internet Fraud:

The Internet offers many of the same scams that have been conducted by mail and phone.  It's sometimes hard to tell the difference between reputable online sellers and crooks who use the Internet to steal from people. You can protect yourself by learning how to recognize the danger signs of fraud. If you are a victim or attempted victim of Internet fraud, it's important to report the scam quickly so that law enforcement agencies can shut the fraudulent operations down.

Insider trading-  Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include tipping such information, securities trading by the person tipped, and securities trading by those who misappropriate such information.

Securities litigation:

The areas we can assist you with are broker/ dealer litigation, shareholder litigation, federal securities litigation, mergers, acquisitions and taking your company public. We also handle all regulatory enforcements and investigations involving audits, boards and other special committees.

If you have a securities fraud case of any kind, it is essential to hire an experienced, attorney. Danny Sheena will assist you in determining the best course of action for your case. Contact us today for a Free Consultation.

Danny M. Sheena, P.E.

The Sheena Law Firm
2500 West Loop South, Suite 518
Houston, Texas 77027
(713) 224-6508 - Office
(713) 225-1560 - Fax

Email: [email protected]


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