Securities fraud

Securities fraud, also known as investment fraud or stock fraud, refers to when a deceptive practice in a stock market or commodity market is committed. The deceptive practice leads investors to make purchases or sale decisions based on false information. That usually means losses in violation of securities laws.

Examples of securities fraud include insider trading, the Ponzi scheme, Internet fraud and corporate fraud.

Any investor can become a victim. However, it usually happens to those age fifty or older. It not only happens to investors, it happens to creditors, employees and taxing authorities.