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.
