What are the federal statutes governing investment fraud?

In Washington, the federal statutes governing investment fraud are outlined in the Securities Act of 1933 and the Securities Exchange Act of 1934. The Securities Act of 1933 ensures that investments, such as stocks and bonds, are sold and advertised in an honest manner and that full disclosure of material information is made to prospective investors. The Securities Exchange Act of 1934 regulates the trading of securities, as well as the disclosure of information regarding publicly traded companies. The legislation includes various sections which prohibit deception, manipulation and misuse of investor funds. It also imposes civil and criminal penalties on those who engage in fraudulent activities. The legislation also allows state and federal regulators to impose fines and injunctions against violators. In addition to the laws governing investment fraud, the U.S. government has established the Securities and Exchange Commission (SEC) to enforce the laws and protect investors. The SEC has the authority to investigate investment fraud and take legal action against those who violate the securities laws. In Washington, investors who suspect they are being defrauded should immediately contact the SEC or state authority. If a violation is found, the violator may face civil or criminal penalties, including possible fines and imprisonment. Additionally, investors may be able to recover their losses through civil court or arbitration proceedings.

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What are the federal statutes governing investment fraud?

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