A Concise Insight Into NY Fraud Lawyers

by Samuel Levy on February 28, 2012

It is bad that fraud involving the securities market enables perpetrators of the crime to make illegal profits that make the securities market a risky investment venture. It becomes essential for investors affected by securities fraud to get legal help from an attorney who deals with solving such cases. This attorney can help investors get back the money they lost because of fraud involving the securities market from the people associated with the crime. Fraudulent activities involving securities are serious offenses and the people included in them should get civil and criminal punishment.

Investments and securities are useful tools for people who desire to put some money away and watch it mature into a nest egg which can be of benefit to the investor or help out a relative in need.

The word “securities” refers to both bonds and stocks. A stock is a percentage or a share in the assets and profits of a company. A bond on the other hand refers to the money that an investor loans out to an organization or a bond issuer. The person who invests in bonds makes an agreement with the party receiving the money that the party will refund the invested money with a certain amount of interest after some time.

The aim of securities fraud is to make investors buy securities through distorting information or concealing some of it to meet the requirements of the perpetrators of fraud. The perpetrator can be an individual or a corporate entity. Financial markets respond to and succeed due to distinct information.

According to the regulations passed by the Securities and Exchange Commission (SEC), securities fraud includes many things including insider trading, accounting fraud and misrepresentation. Insider trading is trading securities using information that the public does not know about. Accounting fraud on the other hand involves keeping books that contain inaccurate information or presenting investors with the incorrect information. Misrepresentation involves giving false information about a certain company, or the securities it provides to investors.

The SEC mainly works to ensure that investors are assured about putting their money in securities by providing them with information concerning securities and companies they can invest with. The SEC also supervises the securities market and investigates the happenings in markets that do not seem like the regular ones. This organization’s foundation rests on the Securities Act passed in 1933 and on the Securities Exchange Act passed in 1934. The information in these statues influences the operation of the SEC in our day.

The principle qualities of those selling or exchanging securities are that they should be fair and have integrity because business relationships involving securities depend heavily on trust. It is crucial that any customers or clients dealing with such businesses get information which they can trust in always.

It is necessary for the organizations that offer investment services to be ready to help and be truthful about the current state of their business operations and the kind of investment products they have. All investors have the right to get access to the accurate details about investment services or products on offer. They should be able to tell whether the investment services or products have the potential to produce gains or losses.

It is crucial for you to contact a lawyer who deals with cases involving securities fraud if you have the suspicion that your investment broker or someone else has defrauded you. If such an individual has violated SEC rules, the lawyer specializing with securities fraud will help you gain back up to 66 percent of your investment and the good thing about such a lawyer is that you will only pay him or her after recovering your funds.

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