What is investment fraud?

Investment fraud is a type of financial crime that involves the intentional misrepresentation of an investment or investment products in order to make a financial gain. Generally, an individual or entity perpetrates the fraud for their own benefit, typically by creating false or exaggerated information about a specific investment or product to lure investors into investing their money into something that is not profitable. Investment fraud can also involve more extreme cases, such as outright theft of investor funds. In Virginia, investment fraud is taken very seriously. The Virginia Securities Act of 2002 protects Virginia citizens from fraud and deceptive practices in the offer and sale of securities. The Act prohibits anyone from offering to sell unregistered securities, engaging in unfair and deceptive practices, and engaging in "cold calling" (unsolicited phone calls offering investments). The Virginia State Corporation Commission works to ensure that investors are protected and that those who perpetrate investment fraud are held accountable for their actions. The Commission also has an Investor Education Program to educate Virginia citizens about the important issues related to investing and the potential of being a victim of investment fraud. This program provides information about the signs and symptoms of fraud, as well as how to recognize and avoid investment scams. The Commission is also actively involved in the investigation of complaints and allegations of investment fraud that are brought to their attention. Investment fraud can be a serious offense, and it is important for Virginia citizens to be aware of the risks associated with investing. With the proper education and knowledge about investment fraud, citizens can make informed decisions when it comes to investing and help protect their investments.

Related FAQs

What is a securities fraud complaint?
What is the purpose of the Investment Advisers Act of 1940?
What is the difference between a mutual fund and an ETF (Exchange Traded Fund)?
What is the difference between a broker-dealer and an investment adviser?
What is a private placement memorandum?
How can I be protected from investment fraud?
How can I recognize and avoid Ponzi schemes?
What are the regulations governing the sale of securities?
What are the federal statutes governing investment fraud?
What are the risks associated with margin trading?

What is investment fraud?

Related FAQs

Related Blog Posts