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Securities Fraud: Things to Know

White Collar Crime Watch. Because not all criminals look like monsters.

White collar crime comes in many different forms. Some types of white collar crime are commonly known, such as fraud, money laundering, identity theft, or mail fraud. There are other types of white collar crime that are less well known. For instance, according to a stock loss lawyer, securities fraud is a big problem.

Securities fraud is a type of fraud that involves the buying, trading, and selling of stocks and bonds. Many people don’t follow the law when dealing with the stock market. When someone commits fraud related to stocks and bonds, they could be charged with a crime. 

Most white collar crimes are federal offenses. A person could face serious legal consequences if convicted of such a crime.

What You Need to Know

If you buy, sell, or trade stocks on the stock market, you need to be well aware of the laws. You don’t want to inadvertently break any of these laws and get into trouble yourself. 

For instance, if someone on the inside of a company gives you a tip about the company that could help you in the stock market, you might think, “Oh, lucky me!” However, you would be committing insider trading if you acted upon that tip. Insider trading is a crime.

Also, if you know a company, organization, or person is engaging in securities fraud, you could blow the whistle on them. It may seem like you’re ratting someone out, but securities fraud hurts the entire country and the economy. Stock market issues brought the economy crashing to a halt and brought on the Great Depression.

Another common type of securities fraud is embezzlement. This is when an individual or group of people use other people’s money for personal gain. For instance, they could mislead investors by falsifying documents. They could use company money for an investment without the company’s knowledge. A person could transfer funds illegally or write forged checks.

Don’t Be Complacent: White Collar Crime Could Happen to You

Now you know a little about securities fraud. You are not immune from the effects of white collar crime. Make sure you watch out for securities fraud within your company. Investment firms should be closely monitored.

White Collar Crime Watch remains dedicated to helping you spot white collar crime and avoid being impacted by it.

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Pages

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  • Common White Collar Crimes to Watch Out For
  • Compounding Pharmacy Fraud Schemes to Watch Out For
  • Don’t Become a Victim of Mail Fraud
  • How Embezzlement Can Hurt Your Business
  • How Money Laundering Works
  • Privacy Policy
  • Securities Fraud: Things to Know
  • Signs That an Employee Might Be Stealing from You
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