What are the federal statutes governing investment fraud?

Investment fraud is a serious issue, and there are federal statutes in place to address it. The primary law governing investment fraud is the Securities Exchange Act of 1934, also known as the Exchange Act. This law was passed in response to the Great Depression, and it regulates all public trading of securities like stocks, bonds, and mutual funds. This law also created the United States Securities and Exchange Commission, or SEC, responsible for the regulation of such transactions. The SEC helps protect investors from fraudulent activities by enforcing a number of regulations and laws. The SEC also has the power to bring civil and criminal actions in cases of alleged fraud. The SEC protects investors’ rights and interests by investigating and prosecuting fraud-related activities. Moreover, The Investment Advisers Act of 1940 governs investment advice. This act requires advisers to register and report any investments they are advising in order to ensure they are acting in the best interests of their clients. This law also sets standards of conduct for advisers, like a duty to disclose any conflict of interests, and prohibits advisers from self-dealing. Finally, the Sarbanes-Oxley Act of 2002 (also known as the Corporate and Criminal Fraud Accountability Act) sets certain standards of conduct for publicly traded companies. This law also requires stronger documentation of financial reporting, and limits the use of accounting firms and officers to conduct audits. Overall, these are the federal statutes governing investment fraud in Virginia. It is important for investors to be aware of these laws and regulations to protect their investments from fraudulent activities.

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What are the federal statutes governing investment fraud?

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