What is securities fraud?

Securities fraud, also known as investment fraud, is a financial crime that involves deceiving people in order to illegally make a profit. In South Carolina, securities fraud is a violation of state law that can result in significant penalties. The most common type of securities fraud is when a person or company makes false statements or omits important information about a security or company to try to entice an investor to buy or sell a stock. In South Carolina, the South Carolina Department of Consumer Affairs is responsible for the enforcement of state laws and regulations that prohibit securities fraud. In order to prosecute a person or business for securities fraud, the Department must prove that the accused misrepresented or omitted crucial information. A person may also be charged for insider trading, which occurs when a person has access to confidential information about a company and then uses that information to make a profit. The penalties for securities fraud in South Carolina can be steep, including fines up to $100,000 and imprisonment of up to 10 years. Additionally, a person convicted of securities fraud in South Carolina may have to pay back any profits made from the criminal activity. By law, securities fraud is a serious crime in South Carolina and those accused of it should seek legal counsel to defend themselves and protect their rights.

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