The most common types of Securities and Commodities Fraud include:
(1) Market Manipulation (e.g., artificially inflating the price of stocks so that co-conspirators can sell their shares at a profit);
(2) High Yield Investment Fraud (e.g, Ponzi Schemes — using money collected from new investors, rather than profits from an underlying business venture, to pay high rates of return promised to earlier investors);
(3) Advanced Fee Schemes (persuading investors to advance relatively small sums of money in order to be able to participate in a lucrative investment opportunity);
(4) Hedge Fund Fraud (e.g., overstatement of fund assets, misappropriation of assets, miscalculation of fund manager performance fees, trading on insider information, market timing, and late trading);
(5) Commodities Fraud (e.g., investments in precious metals or commodities sold based on fraudulent sales pitches claiming high rates of return);
(6) Foreign Currency Fraud (e.g., foreign currency trading firms that use false claims to induce investment in the spot foreign currency market); and
(7) Broker Embezzlement (e.g., forging investor checks or transferring funds or securities without authorization).
What should I do if I have been charged with a SEC Fraud?
If you have been charged with a SEC fraud crime, speak to a knowledgeable defense lawyer as soon as possible. Early preparation by an experienced defense lawyer can increase your chances of a favorable outcome, including the possibility of charges being dropped