Securities fraud is a practice wherein a capitalist has entered into a business on the basis of fake information, especially during buying or selling transactions. Securities fraud, which is also commonly known as investment fraud, more often than not, results to massive money loss in the long run. Furthermore, it is a big violation towards securities laws.
One celebrated case of securities fraud is the case of Bernard Madoff, a former non-executive chairman of the Nasdaq stock market. Mr. Madoff pleaded guilty to securities fraud, money laundering and perjury, thwarting worldwide investors with as much as a whopping $65 billion. He will be in jail for the rest of his life because of this crime.
In general, securities frauds’ main ingredient is deception, especially in the stock market dealings. Fraud may also be practiced in investment fraud attorney commodity markets when an investor carries fake details and enters into business with other investors. Stating false details on financial reports, outright theft, insider trading, investment scams, invention scams are also examples of securities fraud.
Fraudsters are rampant these days especially with the worsening financial crisis. The last thing that you’d want to happen is to be a poor victim of a con artist. Here are some ways to tell that the person you’re talking to may not have the best of intentions.
If the person promises colossal profits after only a short span of time, and the asking price for investment is significantly low, add the pitches that say “this is a no-risk or low-risk business”, chance are, you’re being scammed. Remember, quick-rich schemes are plainly too good to be true.
Investments that create an unbelievable sense of urgency are usually not good. Good clean investments give you time to think and to make a better judgment. Good investments are there to stay, so whether you invest now or next week, it’s okay. Some sales persons or brokers who have fraud in mind would want you to skip all the thinking and invest right away based on their insistence and flowery words. Don’t be hypnotized.
It pays to know the signs, and it pays to know that these con artists exist everywhere. Guard your money and don’t get involved in securities fraud. That’s the best way to go.