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
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. 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.