What Is Securities Fraud and Who Enforces These Laws?
Securities fraud refers to a wide range of deceptive acts that relate to the sale and purchase of securities. The idea behind these illegal acts is manipulating the market for one’s own gain, and both state and federal agencies enforce these laws in South Carolina. If you’re facing a securities fraud charge, the most important first step you can take is consulting with an experienced Greenville, SC, securities fraud attorney at Ryan Beasley Law.
Securities Fraud
Securities fraud laws address a variety of deceptive practices that relate to the sale, purchase, or exchange of securities. Securities refer to financial instruments that include stocks and bonds, options, futures, mutual funds, and exchange-traded funds.
Securities fraud comes in many different forms.
The Omission or Misrepresentation of Material Facts
The omission or misrepresentation of material facts is the fraudulent act of providing falsified information to inflate the financial benefits, to gloss over or conceal the financial risks, or to hide relevant details about the investment at hand.
Ponzi Schemes
A Ponzi scheme is a classic form of fraud that involves providing early investors with funds generated by later investors. The bottom line is that there are no actual profits, which means these schemes eventually collapse and leave only those near the top with something to show for it.
Insider Trading
Insider trading is the illegal practice of making trades based on business information that is not available to the public. The purpose behind this brand of fraud is bolstering profits or avoiding losses, which gives the company or individual an unfair business advantage.
Market Manipulation
When companies take deliberate actions that are designed to artificially alter the price of securities or the trading volume itself, it’s called market manipulation, and it is a form of securities fraud. Spreading false business rumors or making fake trades are prime examples.
The State Agency that Enforces Securities Fraud Laws
The state agency that enforces the South Carolina Uniform Securities Act against those who engage in securities fraud is the Office of the Attorney General Securities Division.
Their role includes all the following:
- Aggressively enforcing the Uniform Securities Act
- Ensuring that only those applicants who comply with strict legal and ethical standards are awarded securities licenses
- Supporting a fair and efficient securities industry that bolsters the state’s economic development
- Promoting investor education for a better-informed public
The Federal Agency that Enforces Securities Fraud Laws
At the federal level, the primary agency enforcing securities fraud laws is the Securities and Exchange Commission (SEC). Their main focus is protecting investors, but they are also charged with taking legal action against those business entities that violate securities laws.
You Need an Experienced Greenville Securities Fraud Lawyer in Your Corner
Ryan Beasley at Ryan Beasley Law is a savvy Greenville securities fraud attorney who dedicates his impressive practice to championing the legal rights of his clients and to fiercely advocating favorable case resolutions on their behalf. Learn more about what we can do to help you by reaching out and contacting us online or calling us at 864-756-4204 today.