What is securities fraud?

Securities fraud, also known as stock fraud or investment fraud, is a white collar crime in Washington and other states. It is an illegal act that involves manipulating or deceiving investors in order to benefit financially. It is most often perpetrated by company insiders, such as accountants, brokers, or corporate executives. One of the most common forms of securities fraud is insider trading, in which individuals or companies purchase or sell securities with knowledge of non-public information. This type of fraud has the potential to harm investors because it allows those who possess the insider information to gain an unfair advantage. Another type of securities fraud is when false information is distributed in order to artificially increase the price of a stock. This can be done by exaggerating the company’s performance in promotional materials or through false rumors. Securities fraud is a serious crime and violators may face significant consequences. In Washington, the Attorney General can file a lawsuit against the offender and request restitution for victims. In addition, federal law enforcement can bring criminal charges or pursue civil penalties. Securities fraud is a major white collar crime that can have both monetary and legal implications, so it’s important to understand the laws and regulations in Washington to avoid being taken advantage of.

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What is securities fraud?

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