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What is securities fraud?

Posted by Ann Fitz | Aug 17, 2022 | 0 Comments

Securities fraud is a white-collar crime that occurs in Florida and throughout the country. Being arrested for this offense can shake up anyone's life. It's important to know what securities fraud is and how it's committed.

What is securities fraud?

Securities fraud is a white-collar crime that occurs when a person makes a false statement about a company or stock value with the intention of deceiving. The purpose of the offense is for the perpetrator to make financial gains based.

Who commits securities fraud?

Often, the individuals behind securities fraud are financial professionals like stockbrokers, analysts or private investors. However, businesses can also commit the offense.

What are some examples of securities fraud?

There are many different types of security fraud. Insider trading occurs when a professional within a company or who holds stock in a company has first-hand information before anyone else and makes the decision to sell or buy stock before the data is made public.

A corporation or other large business can even commit securities fraud. If a corporation is having financial difficulties but the people in charge make misrepresentations about the financials to get people to buy shares of the company for monetary gain, it's considered a form of securities fraud. Third-party misrepresentation securities fraud involves deception provided by someone not involved in a company. They give false information with the intention of selling cheap stocks to others at much higher prices for a profit.

What are the penalties for securities fraud?

Because securities fraud is considered a federal offense, it carries serious penalties if a person is convicted. It's classified as a class C felony, which means a person can face up to 20 years in prison, fines ranging up to $5 million and supervision for the first three years of their release.

Securities fraud is a crime that can hurt many victims. Being charged can also carry devastating consequences, so it's important to construct a strong defense.

About the Author

Ann Fitz

Attorney Ann Fitz Attorney Ann Fitz has 20 years of experience as a federal criminal attorney and appellate practice attorney.  She began her career as a prosecutor in 2003 and started her own federal criminal defense practice in 2007.  She is devoted to protecting the rights of the accused in f...


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