Securities Fraud

What is a security?

The definition of a security encompasses many things; generally, a security includes stocks, bonds, commodities and other investments.

What is securities fraud?

Securities fraud can be described as deceptive practices in the stock and commodity markets. Generally, securities fraud occurs when investors are enticed to part with their money based on untrue statements. Securities Fraud is illegal.

Examples of securities fraud:

A) Providing false information on a company financial statement.
B) Providing false information on Securities and Exchange Commission (SEC) filings.
C) Lying to the company auditors.
D) Insider trading.
E) Stock manipulation schemes.
F) Broker embezzlements.

Who may be involved in securities fraud?

Securities fraud may be committed by, among others, investors, employees of a brokerage houses, corporate executives or their shareholders, or by other market participants.

What can I do to assist in combating securities fraud?

Securities Fraud destroys our confidence in the securities and investments markets and casts doubt over investments into legitimate companies. Therefore, it is very important to identify and report these crimes.

Securities fraud schemes are very secretive and are carried out behind closed doors.

The FBI does not advocate citizens acting on their own to investigate criminal activity. Rather, we strongly encourage citizens to take action by notifying the FBI or other law enforcement agencies whenever they believe a crime may have occurred.

YOU CAN MAKE A DIFFERENCE - STOP SECURITIES FRAUD. ALL CONTACTS WILL BE KEPT CONFIDENTIAL.

Any one with information regarding potential Securities Fraud violations is encouraged to contact the San Francisco Division of the FBI, via Email, at sq14a.San.Francisco@fbi.gov, or call (415) 551-7100, toll free (800) 207-7676.

For more information about the FBI, please see the FBI's main Web Page at www.fbi.gov,