What are the state laws governing investment fraud?

In the state of Washington, investment fraud is regulated by a set of state laws. Investment fraud is a type of crime where someone attempts to take advantage of investors by making false or misleading statements that cause investors to make decisions they wouldn’t have made otherwise. Under Washington law, it is illegal to employ any scheme, device, or artifice to defraud another person or create an opportunity to defraud another person when engaging in the securities business. This could include misrepresenting material facts to investors or engaging in activities such as insider trading or “front running”. It is also illegal in Washington to solicit investments from another person without registering with the state or providing potential investors with certain documents and disclosures. Anyone convicted of investment fraud can face severe penalties, including fines and up to 10 years in prison. The state of Washington also offers restitution for victims, which could include the return of any monies taken in the course of the fraud. Investors should take great care to do their own research before investing in any product or service. This means asking tough questions and requesting documents from potential investments as well as reading up on the company. Additionally, investors should avoid investing with anyone who claims to be able to guarantee a certain return. Remember, if it sounds too good to be true, it probably is.

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