What is the difference between civil fraud and securities violations?
Civil fraud is a term used to describe a wide range of wrongful conduct, from deceiving another person or business to obtaining money or property through malicious or fraudulent means. In California, civil fraud is a type of civil wrong that can result in a plaintiff receiving compensation for any economic losses or damages suffered as a result of the wrongful act. Securities violations, on the other hand, are violations of federal and state laws related to the sale and trading of securities. These may include insider trading, stock manipulation, unregistered securities, and fraud in the offer and sale of securities. When securities violations occur, the Securities and Exchange Commission (SEC) and state securities administrators are the primary regulators and enforcers of such violations. The primary difference between civil fraud and securities violations lies in the nature of the wrongdoing. Civil fraud involves wrongs committed against a person or business, while securities violations involve violations of the laws and regulations governing the purchase, sale, and trading of securities. Additionally, civil fraud cases are adjudicated in civil court, while securities violations are governed by the SEC and state securities administrators.
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