What is the difference between civil fraud and securities violations?

Civil fraud and securities violations are both types of financial crimes, but they have distinct differences. Civil fraud involves a false representation of material facts that causes another person to suffer a loss due to believing and relying on the false representation. The injured party can sue the perpetrator for damages to recover losses. Securities violations involve fraud in the buying and selling of stock, bonds, or other investments. They involve insider trading, market manipulation, sales of unregistered securities, misappropriation of investor funds, and other violations of securities laws. Securities violations are often investigated by the Securities and Exchange Commission (SEC) and may result in criminal charges and fines. In West Virginia, the Office of the Attorney General is responsible for prosecuting civil fraud cases. Securities violations are typically enforced by the SEC. Both forms of fraud carry harsh penalties, including jail time and fines, but the penalties for securities violations tend to be more severe. In summary, civil fraud involves lying to another person to make a profit, while securities violations involve fraud in investment activities and are more heavily regulated. The penalties for both crimes can be severe, but securities violations tend to carry heavier penalties.

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