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.

Definition

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.
Advertisements
Advertisements
Banking & Securities Fraud Congress - US Senate Our Daily News Political Fraud Securities Fraud

House Deal Would Keep ExIm Bank Functioning Through 2026 – WSJ

A House agreement would give new life and political stability to an embattled agency that smooths export deals between U.S. manufacturers and overseas buyers. — Read on www.wsj.com/articles/house-deal-would-keep-exim-bank-functioning-through-2026-11560900814 Advertisements

Advertisements
Advertisements
Advertisements
Advertisements

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.