What is securities fraud?

Securities fraud, also known as investment fraud, happens when someone misrepresents, omits, or exaggerates information related to an investment. It’s done in order to persuade someone to purchase, sell, or hold a security, such as stocks, bonds, or mutual funds. One common example is when someone makes false claims about the value, benefits, or success of an investment. For example, someone may tell an investor that a certain stock will triple in value in just a few weeks. This type of fraud is illegal and can have serious repercussions for the investor, such as lost money and ruined credit. In South Dakota, securities fraud is a white-collar crime. This means that it’s not a violent crime, and usually involves financial transactions and deception to illegally gain money or property. It can be prosecuted by the state or the federal government and is punishable by varying fines and jail sentences depending on the severity of the crime. People in South Dakota can help protect themselves from securities fraud by researching investments before putting any money into them. They should also consult with a financial advisor or accountant to discuss the risks associated with investing. Finally, it’s important to be aware of red flags when it comes to potential fraud, such as exaggerated or false promises of returns, and never give out personal or financial information, such as bank account numbers.

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What is securities fraud?

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