What is securities fraud?

Securities fraud, also known as investment fraud, is a white collar crime in Georgia that involves deceiving investors by manipulating the stock market or securities offerings. It includes activities such as insider trading, accounting fraud, and Ponzi schemes. Insider trading is when a person with confidential knowledge of a company’s affairs uses that information to buy or sell stock, often in violation of federal securities regulations. This includes executives, officers, or directors of a company who have access to inside information such as financial reports, reports that are not yet available to the public. Accounting fraud, also known as financial statement fraud, is the intentional manipulation of financial statements to deceive investors and creditors. This involves falsifying financial statements, misrepresenting facts, or failing to disclose important information, such as income and expenses. A Ponzi scheme is a fraudulent investment operation that involves using funds from new investors to pay "returns" to older investors. No actual investments are ever made, resulting in thousands of investors losing their hard-earned savings and investments. Securities fraud is a serious crime in Georgia and is punishable by large fines and sometimes even jail time. As an investor, it is important to be aware of the signs of investment fraud and to take steps to protect your investments. Securities fraud is a serious offense that can have a lasting effect on both the investor and the company involved.

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What is securities fraud?

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