Securities Fraud

FBI Description

Securities FraudA Basic Overview

The nation’s economy is increasingly dependent on the success and integrity of the securities and commodities markets. As a result, the FBI diligently investigates criminal activity in the markets and against investors whenever it arises.


The term Securities Fraud covers a wide range of illegal activities, all of which involve the deception of investors or the manipulation of financial markets.

  • High Yield Investment Fraud
  • Ponzi Schemes
  • Pyramid Schemes
  • Advanced Fee Schemes
  • Foreign Currency Fraud
  • Broker Embezzlement
  • Hedge Fund Related Fraud
  • Late Day Trading

Common ScamsBe on the Lookout for Fraud

High Yield Investment Frauds

  • Characterized by promises of high rates of return with little or no risk.
  • May involve various forms of investments (e.g. securities, commodities, real estate, precious metals, etc.)
  • “Too good to be true” investment opportunities.
  • Perpetrators may contact victims by telephone, e-mail, or in person.
  • The offers are generally unsolicited.

Ponzi & Pyramid Schemes

  • Use money collected from new victims to pay the high rates of return promised to earlier investors.
  • Payouts give the impression of a legitimate, money-making enterprise behind the fraudster’s story.
  • In reality, investors are the only source of funding.

Advance Fee Schemes

  • Victims advance relatively small sums of money in the hope of realizing much larger gains.
  • Gains never materialize because there is no legitimate underlying investment.
  • To participate a particular investment opportunity, victims must first send funds to cover “taxes” or “processing fees.”
  • After victims send the “fees,” the perpetrators appropriate the funds and never deliver on the investment.
California Federal Bureau of Investigation (FBI) Foreclosure Fraud Mail Fraud Mortgage Fraud Our Daily News Religious Fraud Securities Fraud US Department of Justice (DOJ) Wire Fraud

Archbishop of a Nevada City Spiritual Organization and Six Others Indicted in $8 Million Mortgage Fraud Conspiracy

#BoondoggledNews #BankFraud #WireFraud #MailFraud #SecuritiesFraud #ForeclosureFraud #MortgageFraud #Cailfornia


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