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Also known as investment fraud or stockbroker fraud, securities fraud is a misleading practice in the investment markets (stock or commodities) that persuades investors to make purchase or sale decisions on the basis of fraudulent information. Inevitably, such decisions lead to losses, and often are in clear violation of securities laws. The major problem with these cases, is the lure of profits based on high risk investment opportunities. Unfortunately, investors who suffer are typically unfamiliar with investing and unable to evaluate risk.
 
The term “securities fraud” encompasses a broad range as there are several forms which include stock manipulation, misrepresentations on financial reports, theft from investors (embezzlement), lying on SEC filings, committing accounting fraud, and insider trading.
 

Obviously, any investor can become a victim of securities fraud

 
Losses are not limited to just investors, often taxing authorities, creditors, and employees are affected. Securities fraud is considered a serious crime and carries both civil and criminal penalties which can result in imprisonment and fines. Allegations of securities fraud are investigated by the Securities and Exchange Commission (SEC) and National Association of Securities Dealers (NASD).
 
If you believe you have been a victim of securities or investment fraud, please contact our Michigan securities law firm today. We have helped countless individuals recover from investment losses. Call today for your free case evaluation.