Securities Fraud

Securities Fraud in Las Vegas are the scams, schemes and frauds aimed to trick or swindle people out of their money. Since it is frequently a white-collar crime, it usually involves enormous amounts of money and the lack of violence. If not found criminally liable by the court, the defendant can still face a separate charge through civil prosecution.

Securities Fraud Crimes

There are many frauds and schemes used in a securities fraud case, here’s a list complete with a short explanation detailing each one:

Ponzi Schemes

Ponzi schemes involve conning a person out of their money by impressing them with high returns if they “invest”, when actually, the money came from other investors also tricked into the scheme. It needs increasing amounts of money from new investors if the scheme is to keep going although it is frequently unsustainable.

Pyramid Schemes

Pyramid schemes differ from Ponzi schemes although it is related. While Ponzi schemes involve the schemer at the center of the scheme, pyramid schemes depends a lot on the people involved in the scheme, whether they are aware of it or not. Commonly disguised as multi-level marketing, it may involve the selling of inferior or low demand products.

The schemer recruits other people by enticing them with the huge amounts of money they can make through receipts or commissions from other people they have recruited themselves, but the real source of the money actually comes from the other recruits.

Matrix scheme / Matrix sale / Matrix Site / Ladder Scheme / Hellevator / Escavator / Waiting List

A lot of similarities to a pyramid scheme, it involves getting other people to buy or sign-up for low quality products for the eventual reward of a desired product like IPods, TVs or game consoles.

Advanced Fee Schemes / Nigerian scam / Nigerian 419 scam

These scams frequently pop-up as spam in email. It involves tricking a person out of their money by emotional manipulation and the promise of paying them back, but they need to pay an advanced fee first to get it.

Forex Fraud / Foreign Exchange Fraud / Forex Scam / Foreign Currency Fraud

This fraud can include selling trading or charting software that can “guide” the customer with their trading, mismanagement of their accounts, false advertising, Ponzi schemes, and churning.

Embezzlement

A broker or manager of a managed fun like mutual funds use take the money for themselves instead of using it to invest.

Insider Trading

Insider trading involves trading stocks, commodities or currencies while armed with the knowledge that are not available to the public

Late Day Trading

It is against the law to trade after market hours because it is unfair to the other traders since they can’t buy or sell after the trading session ends.

Pump and Dump

Giving praise to a particular stock to affect its prices, when the real purpose is to profit from the short-term gain by going long(buying) on the stock. They could also short(sell) the stock before it goes down again.

Dump and Dilute

The opposite of Pump and Dump, Dump and Dilute involves shorting a stock and then giving negative news about it to reduce its price. They can also buy the stock again after it rises.

No-net-sales policy

This is the practice of discouraging or disallowing investors from selling their shares to raise the price of the stock in the market.

Rogue Trading / Unauthorized Trading

Unauthorized trading is trading stocks, commodities, or currency on behalf of a company without their permission.

Chop Stocks

Brokers buying stocks at pennies per share, but selling these stocks for a dollar or more to retailers and clients by hyping up these stock, and taking advantage of the rising prices in the process.

Penalties for Security Fraud in Nevada

Most crimes in security fraud are either class C or class B felonies:

Penalties for Class C Felony

  • 1 to 5 years in prison;
  • Fines up to $10,000.

Penalties for Class B Felony

  • 1 to 20 years in prison;
  • Fines of not reaching more than $500,000.

Get a securities fraud lawyer to defend you

The penalties for securities fraud are extremely harsh. It would be in your best interest to get the services of a criminal defense attorney to defend you and have your charges lessened or dropped.

References:
https://www.leg.state.nv.us/NRS/NRS-090.html
http://www.leg.state.nv.us/Division/Research/Publications/FactSheets/CrimeCharts/CrimeList.pdf
http://www.leg.state.nv.us/NRS/NRS-112.html
http://www.leg.state.nv.us/nac/NAC-090.html
http://www.leg.state.nv.us/Division/Research/Publications/FactSheets/CrimeCharts/Catb.pdf