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Securities Fraud Attorney | Stock Fraud Attorney
Securities Fraud Attorney | Stock Fraud Attorney
Securities Fraud Attorney, are here to help you recover your loss from a broker firm. Contact us today for a free case review with a Stock Fraud Attorney.
Greenville,
Oh,
United States of America
(prbd.net)
10/09/2010
A fraud is a crime, an intentional deception made for personal gain or to damage another individual. Frauds can take place in many ways. One of its major types includes the Securities Fraud. Securities fraud is a kind of modern crime where the victim is the one who trusts a firm or individual and making an investment based on the information he is given by the firm or individual(Stockbrokers). The victim is told false information or mislead by a false advice. These kinds of frauds are normally carried out by fraudulent companies, brokerage firms, stockbrokers, corporations or investment banks. In order to protect investors from being cheated and to protect certain laws are defined by Securities and Exchange Commission.
The types of misrepresentation involved in securities fraud include the following
* False information on a company’s financial statement
* Withholding key information
* Offering bad advice, and offering or acting on inside information (insider trading )
* Securities and Exchange Commission (SEC) filings
* Lying to corporate auditors, committing accounting fraud
* Embezzlement by stockbrokers and
* Illegal acts on the trading floor of a stock or commodity exchange.
The securities fraud are committed normally by Brokers-dealers (misleading the clients or advising wrongly based on inside information), Analysts or Financial advisors (purposefully mislead by providing wrong advice), Corporations (distorting information or hiding), Private investors.
The types of securities fraud is as follows
* Churning
* Unsuitability
* Overconcentration
* Misrepresentation/Nondisclosure
Churning
Churning an account means making up the mind of investor to invest more only to generate more commission to the brokers. The investor here is misled by a false advice from the broker. The broker makes this to happen only for his benefit instead of the benefit of the client. The broker drives the benefit both from the investor and client side. If the broker seems to have securities in the investors account to an excessive degree then there is the possibility the investors account can be churned.
Unsuitability
Unsuitability is one types of fraud where the investor is recommended to invest that is not appropriate to him. A broker’s duty is to lead the investor in right path by giving proper advice, proper signals and protecting the investors from losing. Broker understands the potential of investor and based on the requirement of client brokers should make recommendations to the clients.
Overconcentration
Overconcentration occurs when individual investments are made too much in a particular company or in a same product which in course of time reduces the value of the investor’s portfolio in the market. The broker who does not guide the investor to change is the one liable if that portfolio’s value declines.
Misrepresentation
Misrepresentation is when a broker provides false information or guides the client in a wrong way by not disclosing the required information’s about the product he is investing which is against the law.
Securities Fraud- Certain Scenarios
* Wire Fraud Mail Fraud/ /Bank Fraud
* Drug/Controlled Substances Offenses
* Military Criminal Law
* Administrative Discharges
The Securities and Exchange Commission (SEC) defines the conditions for s security fraud. These conditions are outlined by SEC under section determine the requirements for securities fraud10b-5 (Rule 10b-5) of the Securities Act of 1934.
It will be considered as a fraud under act 10b-5 if
1.an untrue statement (a lie) is made and
2.Making a statement which is not completely true or certain facts are not told clearly.
The one who said false information in order to make a purchase or sale of securities will be considered committing a fraud. The false information told or the fake information used to initiate the purchase will lead to a loss to the victim
Securities Fraud Penalties
Charges made on securities frauds are made only after a lengthy surveillance and enough proofs to prove them guilty. It can be charged against any individuals, traders, stockbrokers or companies if found that they are involved in such fraudulent activity. Punishments made for this type of fraud is such that it won’t affect the people’s lives or financial status instead it takes their time to learn social morals. The penalties can be in any of the below stated form like Probation, Jail time, Significant fines and fees, Restitution, Parole, Community service ,Loss of business or disabled to work within the exchange or marketplace. Thus to avoid all the impacts of the securities fraud lets be aware and alert while making transactions.
Contact Details:
Stock Fraud Attorney, Securities Fraud Attorney
Abby Jones
abbyjones135@gmail.com
http://www.stockfraudattorney.info
6085 sebring warner rd
Greenville, Ohio,
USA, 45331
614-305-7100
Stock Fraud Attorney
Securities Fraud Attorney
About
Securities fraud is a type of fraud that encourages investors to purchase securities, stocks or other investments under false pretenses. This type of fraud can occur when the companies and agents acting for the companies encourage fraud to occur. Investors typically make a purchase decision based upon false or misconstrued information and often lose large amounts of money.
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