What are the federal statutes governing investment fraud?

The federal statutes governing investment fraud are governed by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). These organizations are responsible for enforcing laws and regulations that protect investors from fraudulent activity in financial markets. In West Virginia, the SEC enforces the federal securities laws, while the CFTC enforces the Commodity Exchange Act of 1936 and related statutes. The SEC regulates the securities industry and works to protect investors from investment fraud. It enforces the federal securities laws that require full disclosure of material facts related to the sale of securities. These laws also prohibit deceptive and fraudulent activities such as insider trading, market manipulation, and fraud in the offer and sale of securities. The CFTC is responsible for regulating the commodities and derivatives markets, including futures, options, and swaps. The CFTC also enforces the Commodity Exchange Act, which protects investors from fraud and manipulation in these markets. Specifically, the CFTC works to prevent fraud, manipulation, and deceptive practices involving commodities and derivatives, such as creating false market prices or insider trading. In West Virginia, the Attorney General’s Office works alongside the SEC and CFTC to identify and prosecute those engaging in investment fraud. The Attorney General may pursue civil or criminal enforcement actions, depending on the severity of the violation. The Attorney General also educates the public about investment fraud and serves as an advocate against deceptive and illegal practices.

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