SlideShare a Scribd company logo
By Donald Harwood, Attorney
Introduction
 As a practitioner of the law for three decades, attorney Donald
Harwood has handled many kinds of court cases for his firm of
Harwood and Reiff, LLC. Donald Harwood's services as an
attorney include complex civil litigation and criminal defense
cases, often involving white-collar crime.
White-collar crime covers several types of financial misconduct,
such as fraud, which is defined as the act of obtaining money
under false pretenses. One common type is securities fraud,
often committed by a company issuing stocks. It involves the
inaccurate reporting of financial information to stockholders or
investors.
Persons making decisions on the basis of this false data stand to
lose their investments, especially if the company goes bankrupt.
Securities Fraud
 The Enron case is an example of securities fraud. The officers of the
company failed to report all its expenses, which artificially inflated the
stock's value.
Another well-known type of securities fraud is insider trading. Persons
committing this crime use information not available to the public to
make buying or selling decisions. For instance, an accountant may sell
stock knowing that the company is on the verge of bankruptcy. Doing
this before letting the board of directors know about the problem
constitutes insider trading.
In contrast is third-party misrepresentation, often called “pump and
dump”. This occurs when an investor spreads false news about a small,
less-known company, from which he has bought large amounts of
cheap stock. If the good news raises the stock's value sufficiently and
stimulates others to buy, the investor sells his share at a profit.

More Related Content

Similar to What Is Securities Fraud?

All fraud victims have the right to sue
All fraud victims have the right to sueAll fraud victims have the right to sue
All fraud victims have the right to sue
Greggy Mullins
 
Fraud, Specifically Corporate Fraud, Is A Common Occurrence
Fraud, Specifically Corporate Fraud, Is A Common OccurrenceFraud, Specifically Corporate Fraud, Is A Common Occurrence
Fraud, Specifically Corporate Fraud, Is A Common Occurrence
Christy Davis
 
C:\Fakepath\Floydpowerpoint
C:\Fakepath\FloydpowerpointC:\Fakepath\Floydpowerpoint
C:\Fakepath\Floydpowerpoint
Kelly Floyd
 
Floydpowerpoint
FloydpowerpointFloydpowerpoint
Floydpowerpoint
Kelly Floyd
 
Floydpowerpoint
FloydpowerpointFloydpowerpoint
Floydpowerpoint
kelly floyd
 
Understand The Types Of Fraud To Help Protect Your Business 12.pdf
Understand The Types Of Fraud To Help Protect Your Business 12.pdfUnderstand The Types Of Fraud To Help Protect Your Business 12.pdf
Understand The Types Of Fraud To Help Protect Your Business 12.pdf
PROF. PAUL ALLIEU KAMARA
 
Bernard Madoff Scandal
Bernard Madoff ScandalBernard Madoff Scandal
Bernard Madoff Scandal
Jessica Myers
 
Somesh Forensic Accounts ppt (1).pptx
Somesh Forensic Accounts ppt (1).pptxSomesh Forensic Accounts ppt (1).pptx
Somesh Forensic Accounts ppt (1).pptx
Kumarasamy Dr.PK
 
Aml / anti money laundering
Aml / anti money launderingAml / anti money laundering
Aml / anti money laundering
SAMBIT SWAIN
 
Chapter 1 the nature of fraud
Chapter 1 the nature of fraudChapter 1 the nature of fraud
Chapter 1 the nature of fraudVidaB
 
Combating Corruption & Fraud in International Arbitration
Combating Corruption & Fraud in International Arbitration Combating Corruption & Fraud in International Arbitration
Combating Corruption & Fraud in International Arbitration
Carlos F. Concepcion
 
Www stockbrokerlitigation com
Www stockbrokerlitigation comWww stockbrokerlitigation com
Www stockbrokerlitigation com
JamesPedro01
 
What is investigative reporting How is it relevant to white collar .pdf
What is investigative reporting How is it relevant to white collar .pdfWhat is investigative reporting How is it relevant to white collar .pdf
What is investigative reporting How is it relevant to white collar .pdf
eyevisioncare1
 
Understand The Types Of Fraud To Help Protect Your Business.pdf
Understand The Types Of Fraud To Help Protect Your Business.pdfUnderstand The Types Of Fraud To Help Protect Your Business.pdf
Understand The Types Of Fraud To Help Protect Your Business.pdf
PROF. PAUL ALLIEU KAMARA
 
White - Collar Crimes in California
White - Collar Crimes in CaliforniaWhite - Collar Crimes in California
White - Collar Crimes in California
Domenic J. Lombardo
 
Apresentaçao 2 np
Apresentaçao 2 npApresentaçao 2 np
Apresentaçao 2 np
Karolalbuquerquecomex
 
Corporate Crimes and money Laundering
Corporate Crimes and money LaunderingCorporate Crimes and money Laundering
Corporate Crimes and money Laundering
HusnainAhmed43
 
White-Collar Crimes in Miami What You Need to Know.pptx
White-Collar Crimes in Miami What You Need to Know.pptxWhite-Collar Crimes in Miami What You Need to Know.pptx
White-Collar Crimes in Miami What You Need to Know.pptx
The Kirlew Law Firm
 
Business Ethics and White-Collar Crime Business Ethics There are many (2).docx
Business Ethics and White-Collar Crime Business Ethics There are many (2).docxBusiness Ethics and White-Collar Crime Business Ethics There are many (2).docx
Business Ethics and White-Collar Crime Business Ethics There are many (2).docx
CharlesCSZWhitei
 

Similar to What Is Securities Fraud? (20)

All fraud victims have the right to sue
All fraud victims have the right to sueAll fraud victims have the right to sue
All fraud victims have the right to sue
 
Fraud, Specifically Corporate Fraud, Is A Common Occurrence
Fraud, Specifically Corporate Fraud, Is A Common OccurrenceFraud, Specifically Corporate Fraud, Is A Common Occurrence
Fraud, Specifically Corporate Fraud, Is A Common Occurrence
 
C:\Fakepath\Floydpowerpoint
C:\Fakepath\FloydpowerpointC:\Fakepath\Floydpowerpoint
C:\Fakepath\Floydpowerpoint
 
Floydpowerpoint
FloydpowerpointFloydpowerpoint
Floydpowerpoint
 
Floydpowerpoint
FloydpowerpointFloydpowerpoint
Floydpowerpoint
 
Understand The Types Of Fraud To Help Protect Your Business 12.pdf
Understand The Types Of Fraud To Help Protect Your Business 12.pdfUnderstand The Types Of Fraud To Help Protect Your Business 12.pdf
Understand The Types Of Fraud To Help Protect Your Business 12.pdf
 
Bernard Madoff Scandal
Bernard Madoff ScandalBernard Madoff Scandal
Bernard Madoff Scandal
 
Somesh Forensic Accounts ppt (1).pptx
Somesh Forensic Accounts ppt (1).pptxSomesh Forensic Accounts ppt (1).pptx
Somesh Forensic Accounts ppt (1).pptx
 
Aml / anti money laundering
Aml / anti money launderingAml / anti money laundering
Aml / anti money laundering
 
Fbi hedge fund_fraud
Fbi hedge fund_fraudFbi hedge fund_fraud
Fbi hedge fund_fraud
 
Chapter 1 the nature of fraud
Chapter 1 the nature of fraudChapter 1 the nature of fraud
Chapter 1 the nature of fraud
 
Combating Corruption & Fraud in International Arbitration
Combating Corruption & Fraud in International Arbitration Combating Corruption & Fraud in International Arbitration
Combating Corruption & Fraud in International Arbitration
 
Www stockbrokerlitigation com
Www stockbrokerlitigation comWww stockbrokerlitigation com
Www stockbrokerlitigation com
 
What is investigative reporting How is it relevant to white collar .pdf
What is investigative reporting How is it relevant to white collar .pdfWhat is investigative reporting How is it relevant to white collar .pdf
What is investigative reporting How is it relevant to white collar .pdf
 
Understand The Types Of Fraud To Help Protect Your Business.pdf
Understand The Types Of Fraud To Help Protect Your Business.pdfUnderstand The Types Of Fraud To Help Protect Your Business.pdf
Understand The Types Of Fraud To Help Protect Your Business.pdf
 
White - Collar Crimes in California
White - Collar Crimes in CaliforniaWhite - Collar Crimes in California
White - Collar Crimes in California
 
Apresentaçao 2 np
Apresentaçao 2 npApresentaçao 2 np
Apresentaçao 2 np
 
Corporate Crimes and money Laundering
Corporate Crimes and money LaunderingCorporate Crimes and money Laundering
Corporate Crimes and money Laundering
 
White-Collar Crimes in Miami What You Need to Know.pptx
White-Collar Crimes in Miami What You Need to Know.pptxWhite-Collar Crimes in Miami What You Need to Know.pptx
White-Collar Crimes in Miami What You Need to Know.pptx
 
Business Ethics and White-Collar Crime Business Ethics There are many (2).docx
Business Ethics and White-Collar Crime Business Ethics There are many (2).docxBusiness Ethics and White-Collar Crime Business Ethics There are many (2).docx
Business Ethics and White-Collar Crime Business Ethics There are many (2).docx
 

More from Donald Harwood (Attorney)

Illegal Tenant Lockout
Illegal Tenant Lockout Illegal Tenant Lockout
Illegal Tenant Lockout
Donald Harwood (Attorney)
 
Constitutional Rights of the Accused
Constitutional Rights of the AccusedConstitutional Rights of the Accused
Constitutional Rights of the Accused
Donald Harwood (Attorney)
 
Tenant Rights in Cases of Eviction in New York
Tenant Rights in Cases of Eviction in New YorkTenant Rights in Cases of Eviction in New York
Tenant Rights in Cases of Eviction in New YorkDonald Harwood (Attorney)
 
Protecting One’s Rights under Landlord Tenant Law
Protecting One’s Rights under Landlord Tenant LawProtecting One’s Rights under Landlord Tenant Law
Protecting One’s Rights under Landlord Tenant LawDonald Harwood (Attorney)
 
Northeastern Law Students Revisit 1946 Shooting
Northeastern Law Students Revisit 1946 ShootingNortheastern Law Students Revisit 1946 Shooting
Northeastern Law Students Revisit 1946 Shooting
Donald Harwood (Attorney)
 
New York State Bar Association Hosts Event Focusing on Women in Law
New York State Bar Association Hosts Event Focusing on Women in LawNew York State Bar Association Hosts Event Focusing on Women in Law
New York State Bar Association Hosts Event Focusing on Women in Law
Donald Harwood (Attorney)
 

More from Donald Harwood (Attorney) (6)

Illegal Tenant Lockout
Illegal Tenant Lockout Illegal Tenant Lockout
Illegal Tenant Lockout
 
Constitutional Rights of the Accused
Constitutional Rights of the AccusedConstitutional Rights of the Accused
Constitutional Rights of the Accused
 
Tenant Rights in Cases of Eviction in New York
Tenant Rights in Cases of Eviction in New YorkTenant Rights in Cases of Eviction in New York
Tenant Rights in Cases of Eviction in New York
 
Protecting One’s Rights under Landlord Tenant Law
Protecting One’s Rights under Landlord Tenant LawProtecting One’s Rights under Landlord Tenant Law
Protecting One’s Rights under Landlord Tenant Law
 
Northeastern Law Students Revisit 1946 Shooting
Northeastern Law Students Revisit 1946 ShootingNortheastern Law Students Revisit 1946 Shooting
Northeastern Law Students Revisit 1946 Shooting
 
New York State Bar Association Hosts Event Focusing on Women in Law
New York State Bar Association Hosts Event Focusing on Women in LawNew York State Bar Association Hosts Event Focusing on Women in Law
New York State Bar Association Hosts Event Focusing on Women in Law
 

Recently uploaded

how can i use my minded pi coins I need some funds.
how can i use my minded pi coins I need some funds.how can i use my minded pi coins I need some funds.
how can i use my minded pi coins I need some funds.
DOT TECH
 
Summary of financial results for 1Q2024
Summary of financial  results for 1Q2024Summary of financial  results for 1Q2024
Summary of financial results for 1Q2024
InterCars
 
how to sell pi coins in all Africa Countries.
how to sell pi coins in all Africa Countries.how to sell pi coins in all Africa Countries.
how to sell pi coins in all Africa Countries.
DOT TECH
 
Chương 6. Ancol - phenol - ether (1).pdf
Chương 6. Ancol - phenol - ether (1).pdfChương 6. Ancol - phenol - ether (1).pdf
Chương 6. Ancol - phenol - ether (1).pdf
va2132004
 
What price will pi network be listed on exchanges
What price will pi network be listed on exchangesWhat price will pi network be listed on exchanges
What price will pi network be listed on exchanges
DOT TECH
 
PF-Wagner's Theory of Public Expenditure.pptx
PF-Wagner's Theory of Public Expenditure.pptxPF-Wagner's Theory of Public Expenditure.pptx
PF-Wagner's Theory of Public Expenditure.pptx
GunjanSharma28848
 
Intro_Economics_ GPresentation Week 4.pptx
Intro_Economics_ GPresentation Week 4.pptxIntro_Economics_ GPresentation Week 4.pptx
Intro_Economics_ GPresentation Week 4.pptx
shetivia
 
where can I find a legit pi merchant online
where can I find a legit pi merchant onlinewhere can I find a legit pi merchant online
where can I find a legit pi merchant online
DOT TECH
 
innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...
innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...
innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...
Falcon Invoice Discounting
 
what is the future of Pi Network currency.
what is the future of Pi Network currency.what is the future of Pi Network currency.
what is the future of Pi Network currency.
DOT TECH
 
APP I Lecture Notes to students 0f 4the year
APP I  Lecture Notes  to students 0f 4the yearAPP I  Lecture Notes  to students 0f 4the year
APP I Lecture Notes to students 0f 4the year
telilaalilemlem
 
Which Crypto to Buy Today for Short-Term in May-June 2024.pdf
Which Crypto to Buy Today for Short-Term in May-June 2024.pdfWhich Crypto to Buy Today for Short-Term in May-June 2024.pdf
Which Crypto to Buy Today for Short-Term in May-June 2024.pdf
Kezex (KZX)
 
BYD SWOT Analysis and In-Depth Insights 2024.pptx
BYD SWOT Analysis and In-Depth Insights 2024.pptxBYD SWOT Analysis and In-Depth Insights 2024.pptx
BYD SWOT Analysis and In-Depth Insights 2024.pptx
mikemetalprod
 
Commercial Bank Economic Capsule - May 2024
Commercial Bank Economic Capsule - May 2024Commercial Bank Economic Capsule - May 2024
Commercial Bank Economic Capsule - May 2024
Commercial Bank of Ceylon PLC
 
how to sell pi coins at high rate quickly.
how to sell pi coins at high rate quickly.how to sell pi coins at high rate quickly.
how to sell pi coins at high rate quickly.
DOT TECH
 
how can I sell/buy bulk pi coins securely
how can I sell/buy bulk pi coins securelyhow can I sell/buy bulk pi coins securely
how can I sell/buy bulk pi coins securely
DOT TECH
 
managementaccountingunitiv-230422140105-dd17d80b.ppt
managementaccountingunitiv-230422140105-dd17d80b.pptmanagementaccountingunitiv-230422140105-dd17d80b.ppt
managementaccountingunitiv-230422140105-dd17d80b.ppt
SuseelaPalanimuthu
 
How to get verified on Coinbase Account?_.docx
How to get verified on Coinbase Account?_.docxHow to get verified on Coinbase Account?_.docx
How to get verified on Coinbase Account?_.docx
Buy bitget
 
Introduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.pptIntroduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.ppt
VishnuVenugopal84
 
The new type of smart, sustainable entrepreneurship and the next day | Europe...
The new type of smart, sustainable entrepreneurship and the next day | Europe...The new type of smart, sustainable entrepreneurship and the next day | Europe...
The new type of smart, sustainable entrepreneurship and the next day | Europe...
Antonis Zairis
 

Recently uploaded (20)

how can i use my minded pi coins I need some funds.
how can i use my minded pi coins I need some funds.how can i use my minded pi coins I need some funds.
how can i use my minded pi coins I need some funds.
 
Summary of financial results for 1Q2024
Summary of financial  results for 1Q2024Summary of financial  results for 1Q2024
Summary of financial results for 1Q2024
 
how to sell pi coins in all Africa Countries.
how to sell pi coins in all Africa Countries.how to sell pi coins in all Africa Countries.
how to sell pi coins in all Africa Countries.
 
Chương 6. Ancol - phenol - ether (1).pdf
Chương 6. Ancol - phenol - ether (1).pdfChương 6. Ancol - phenol - ether (1).pdf
Chương 6. Ancol - phenol - ether (1).pdf
 
What price will pi network be listed on exchanges
What price will pi network be listed on exchangesWhat price will pi network be listed on exchanges
What price will pi network be listed on exchanges
 
PF-Wagner's Theory of Public Expenditure.pptx
PF-Wagner's Theory of Public Expenditure.pptxPF-Wagner's Theory of Public Expenditure.pptx
PF-Wagner's Theory of Public Expenditure.pptx
 
Intro_Economics_ GPresentation Week 4.pptx
Intro_Economics_ GPresentation Week 4.pptxIntro_Economics_ GPresentation Week 4.pptx
Intro_Economics_ GPresentation Week 4.pptx
 
where can I find a legit pi merchant online
where can I find a legit pi merchant onlinewhere can I find a legit pi merchant online
where can I find a legit pi merchant online
 
innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...
innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...
innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...
 
what is the future of Pi Network currency.
what is the future of Pi Network currency.what is the future of Pi Network currency.
what is the future of Pi Network currency.
 
APP I Lecture Notes to students 0f 4the year
APP I  Lecture Notes  to students 0f 4the yearAPP I  Lecture Notes  to students 0f 4the year
APP I Lecture Notes to students 0f 4the year
 
Which Crypto to Buy Today for Short-Term in May-June 2024.pdf
Which Crypto to Buy Today for Short-Term in May-June 2024.pdfWhich Crypto to Buy Today for Short-Term in May-June 2024.pdf
Which Crypto to Buy Today for Short-Term in May-June 2024.pdf
 
BYD SWOT Analysis and In-Depth Insights 2024.pptx
BYD SWOT Analysis and In-Depth Insights 2024.pptxBYD SWOT Analysis and In-Depth Insights 2024.pptx
BYD SWOT Analysis and In-Depth Insights 2024.pptx
 
Commercial Bank Economic Capsule - May 2024
Commercial Bank Economic Capsule - May 2024Commercial Bank Economic Capsule - May 2024
Commercial Bank Economic Capsule - May 2024
 
how to sell pi coins at high rate quickly.
how to sell pi coins at high rate quickly.how to sell pi coins at high rate quickly.
how to sell pi coins at high rate quickly.
 
how can I sell/buy bulk pi coins securely
how can I sell/buy bulk pi coins securelyhow can I sell/buy bulk pi coins securely
how can I sell/buy bulk pi coins securely
 
managementaccountingunitiv-230422140105-dd17d80b.ppt
managementaccountingunitiv-230422140105-dd17d80b.pptmanagementaccountingunitiv-230422140105-dd17d80b.ppt
managementaccountingunitiv-230422140105-dd17d80b.ppt
 
How to get verified on Coinbase Account?_.docx
How to get verified on Coinbase Account?_.docxHow to get verified on Coinbase Account?_.docx
How to get verified on Coinbase Account?_.docx
 
Introduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.pptIntroduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.ppt
 
The new type of smart, sustainable entrepreneurship and the next day | Europe...
The new type of smart, sustainable entrepreneurship and the next day | Europe...The new type of smart, sustainable entrepreneurship and the next day | Europe...
The new type of smart, sustainable entrepreneurship and the next day | Europe...
 

What Is Securities Fraud?

  • 2. Introduction  As a practitioner of the law for three decades, attorney Donald Harwood has handled many kinds of court cases for his firm of Harwood and Reiff, LLC. Donald Harwood's services as an attorney include complex civil litigation and criminal defense cases, often involving white-collar crime. White-collar crime covers several types of financial misconduct, such as fraud, which is defined as the act of obtaining money under false pretenses. One common type is securities fraud, often committed by a company issuing stocks. It involves the inaccurate reporting of financial information to stockholders or investors. Persons making decisions on the basis of this false data stand to lose their investments, especially if the company goes bankrupt.
  • 3. Securities Fraud  The Enron case is an example of securities fraud. The officers of the company failed to report all its expenses, which artificially inflated the stock's value. Another well-known type of securities fraud is insider trading. Persons committing this crime use information not available to the public to make buying or selling decisions. For instance, an accountant may sell stock knowing that the company is on the verge of bankruptcy. Doing this before letting the board of directors know about the problem constitutes insider trading. In contrast is third-party misrepresentation, often called “pump and dump”. This occurs when an investor spreads false news about a small, less-known company, from which he has bought large amounts of cheap stock. If the good news raises the stock's value sufficiently and stimulates others to buy, the investor sells his share at a profit.