What is the difference between civil fraud and securities violations?

Civil fraud and securities violations are two different types of illegal behavior. Civil fraud is a tort, which is an intentional wrongful act that results in harm or damages to another. Securities violations are a type of criminal offense, meaning that a person can be charged with violations of the criminal law. Civil fraud usually involves deception and misrepresentation. An example of civil fraud is when a company falsely advertises a product or service. This means that the company provided false information about the product or service in order to gain an advantage over its competitors. A person who purchases the product or service based on the false advertising may be eligible to take legal action, as they have been directly harmed by the deception. Securities violations are violations of the law related to the buying and selling of stocks and other investments. An example of a securities violation is insider trading, which is when someone buys and sells stocks of a company based on information that is not publicly available. Insider trading is illegal because it gives one person an unfair advantage over other investors in the market. In California, both civil fraud and securities violations are punishable by law. Depending on the severity of the violation, a person may face criminal charges, fines, imprisonment and other penalties.

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What is the difference between civil fraud and securities violations?

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