What is the difference between civil fraud and securities fraud?

Civil fraud and securities fraud are two different areas of law that have similarities, but also significant differences. Civil fraud is defined as knowingly or recklessly making a false representation of material fact, or by failing to disclose information, to deceive another person. The purpose of civil fraud is usually economic gain at the expense of the other person. On the other hand, securities fraud is a type of civil fraud that is specific to the sale of securities, such as stocks and bonds. This type of fraud usually consists of deceptive practices that involve the sale of a security, such as misrepresenting or omitting material information on a security that would alter the investor’s decision to buy or sell it. In West Virginia, civil fraud is outlined in West Virginia Code § 48-2-10. It states that any person who fraudulently or deceitfully obtains money or property by false pretenses, with the intent to defraud the owner, may be held liable. However, securities fraud is not directly addressed in West Virginia Code. Instead, it is usually punished according to federal law. Under the Securities Exchange Act of 1934, civil and criminal fraud actions can be brought against a person for violating securities laws or regulations. In conclusion, the difference between civil fraud and securities fraud is that civil fraud covers a broader range of deceptive practices, whereas securities fraud is more specific to the sale of securities. Additionally, while civil fraud is generally punished according to state law, securities fraud is usually punished according to federal law.

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What is the difference between civil fraud and securities fraud?

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