Commission of this white collar crime can be carried out by many different types of entities. This includes Stockbrokers, brokerage firms, corporations and investment banks. They misrepresent facts on which investors make decisions to invest.
Take note that individual people can commit securities fraud too. Look at the example of insider trading. This refers to a person buying or selling investments based on information that the general public does not have.
The investigation of claims of securities fraud is the responsibility of the SEC (Securities and Exchange Commission) and NASD (National Association of Securities Dealers). People convicted of securities fraud face jail time and fines.
If you think you have fallen victim to securities fraud, contact an investment law attorney today!