Securities Fraud

The crime of securities fraud and its perpetrators are thoroughly investigated by the Federal Bureau of Investigation (FBI) because our country’s economy has become so dependent upon the integrity of the markets.

Securities fraud includes a wide range of illegal undertakings, all of them related to the deception of people who invest and the exploitation of financial markets. The FBI lists various forms of securities fraud, including:

• High yield investment fraud
• Ponzi schemes
• Pyramid schemes
• Advanced fee schemes
• Foreign currency fraud
• Broker embezzlement
• Hedge fund related fraud
• Late day trading

Experienced Securities Fraud Attorney

If you are charged with securities fraud, you must seek the help of a defense attorney with experience in this area of white-collar crime. David M. Dudley, a state and federal defense attorney, has a national reputation for helping defendants from around the country fight these charges. Mr. Dudley has been in practice since he graduated from Harvard Law School in 1984.

For more than 25 years, Mr. Dudley’s law practice has taken him across the country, representing individuals facing major criminal allegations in 36 different states. He is admitted to the United States Supreme Court and seven federal circuit courts of appeal. He has the experience, the skills, and resources to defend your case.

More on Securities Fraud

Securities fraud, as described by the FBI, includes the following:

• High-yield investment fraud involves promises of huge returns with little or no risk. Almost any type of securities may be involved including stocks, bonds, real estate, precious metals and other types of investments. You should be tipped off if an investment sounds too good to be true. These proposals usually come from someone approaching you by email, telephone, or in person.
• Ponzi and pyramid schemes have to do with using money from new investors to pay big returns to those people who invested previously. Under this arrangement the investors are the only source of funds and the proposition can appear to be legitimate. They are destined to fail because there is no money used as a foundation for the investment.
• Advance fee schemes occur when an investor gives the scammer relatively little money on the promise that much greater gains are to come. However, again because no money serves as a basis for the investment, the large gains are never received. Someone is told to give the scammer money to cover such things as taxes or processing fees. The truth, however, is that the criminal never delivers the “larger gains.”
• Foreign currency fraud involves a request for money from someone in a foreign country intending to defraud you. A well-known case was the Nigerian letter scam.
• Broker investment fraud occurs when the broker to whom you’ve entrusted your money steals the money from your account.
• Hedge fund-related fraud. Hedge funds are private investment partnerships that accept only wealthy investors. Hedge funds can invest in a variety of vehicles, including equities, bonds, options, futures, commodities, arbitrage and derivative contracts as well as funds that are not liquid such as real estate. Recent infamous hedge fund fraudulent schemes have included: instances of giving investors fake financial statements, excessive leverage, advanced fee schemes, and insider trading.
• Late Day Trading involves fraudulent investors who illegally buy and sell mutual funds after the market closes.
• Internet fraud involves using the Internet to fraudulently scam investors out of their money.

If you face criminal charges of committing any of these white collar crimes, it is essential to have a skilled and knowledgeable lawyer who will defend your case and help minimize your penalties. To schedule a case evaluation with one of the most respected and well known white collar defense attorneys in the country, contact Mr. Dudley today.

Security Fraud Frequently Asked Questions

What Exactly is Securities Fraud?

Securities fraud is a white-collar crime investigated by the FBI that involves deceptive practices in financial markets. It includes various illegal activities such as Ponzi schemes, high-yield investment fraud, pyramid schemes, and broker embezzlement. These crimes typically aim to exploit investors by promising unrealistic returns or stealing directly from investment accounts, undermining the integrity of financial markets.

What Are the Most Common Types of Securities Fraud?

The most prevalent securities fraud schemes include high-yield investment fraud promising massive returns with minimal risk, Ponzi schemes that use new investors’ money to pay earlier investors, and advance fee scams that trick investors into paying upfront fees for nonexistent future gains. Other common types involve broker theft, hedge fund manipulation, late-day trading, and internet-based investment scams that target unsuspecting investors.

What Should I Do If I’m Facing Securities Fraud Charges?

If charged with securities fraud, it is critical to immediately seek representation from an experienced white-collar criminal defense attorney. These charges can result in severe legal and financial consequences. An skilled lawyer can analyze the specific allegations, develop a strategic defense, and work to minimize potential penalties. Do not attempt to handle these complex charges without professional legal guidance.