What is securities fraud?

Securities fraud is a type of white-collar crime that occurs when someone deceives or misleads investors in order to make a profit. It can also refer to any illegal activity that involves financial investments, such as insider trading, accounting fraud, and market manipulation. In the state of New Mexico, it is illegal for someone to cause another person to lose money by misrepresenting or omitting facts relating to a security. There are several common ways in which securities fraud can occur: 1. Insider trading: Buying and selling a security based on information not available to the public. 2. Straddling: Taking advantage of investors by taking advantage of times when prices are low and selling it at a higher rate when prices rise. 3. Pump and dump: Manipulating the market by disseminating false or misleading information in order to artificially increase the price of a security. 4. Pyramid/Ponzi schemes: Promising investors unrealistic returns for certain securities, while actually using the money to pay prior investors and pocketing the difference. Securities fraud is a serious criminal offense in New Mexico and across the United States. It is important that potential investors do their research and understand the risks associated with certain investments before they make any decisions. If someone believes they are a victim of securities fraud, they should contact local law enforcement and the Securities and Exchange Commission.

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