What is investment fraud?

Investment fraud is a type of financial crime that happens when an individual or group deceives investors in order to make money without providing value in return. Investment fraud schemes can come in many different forms. There are some common schemes such as Ponzi and pyramid schemes, but other schemes such as "boiler room" operations and stock manipulation are also popular. In South Carolina, investment fraud is illegal and violators can face criminal charges. The South Carolina Code of Laws defines investment fraud as “the use of any untrue statement of a material fact or any omission to state a material fact, with intent to deceive and induce a person to invest in a security.” This includes any deceitful act or statement that is made to convince someone to invest in a security. The South Carolina Department of Consumer Affairs is the agency responsible for investigating and prosecuting investment fraud. When investing, it is important to be aware of your rights and to protect yourself as an investor. If you think you may have been a victim of investment fraud, contact the South Carolina Department of Consumer Affairs immediately to file a complaint.

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What is investment fraud?

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