Securities fraud is a type of white-collar crime that involves the use of either deception or theft to profit. It can be perpetrated by individuals, corporations, or government entities and may take many forms, including corporate accounting fraud, Ponzi schemes, insider trading, mutual fund "timing", stock manipulation (e.g., short selling), pyramid schemes, and embezzlement. It is a violation of the securities laws, which prohibit deception and fraud in the sale or purchase of securities.

One of the most common forms of securities fraud is insider trading, which involves using information that is not available to the public to buy or sell a stock in order to make a profit. Because this type of information is usually confidential and may even be illegal for others to use, it gives people with access to such information an unfair advantage over others who do not have such access. Another common form of securities fraud is accounting fraud, which occurs when a company's financial statements are intentionally misstated in order to deceive investors and creditors.

The Securities and Exchange Commission (SEC) is the United States government agency that oversees the securities market, including stock exchanges and brokerage firms. It has very broad enforcement powers to punish securities fraud, including imposing civil fines and requiring disgorgement of profits obtained through illegal activities. The SEC also has the authority to hold individuals criminally liable for securities fraud if they are found guilty of committing a felony, such as wire or mail fraud.

As a result of these broad enforcement powers and its mandate to police the securities market, the SEC is one of the most powerful agencies in the United States. It has been very successful in prosecuting securities fraud, and it devotes significant resources to investigating and putting a stop to various types of financial fraud. If you have been accused of committing securities fraud or are worried that you might be implicated in future investigations, it is important to speak to a qualified securities fraud attorney as soon as possible. A skilled attorney can help ensure that your rights are protected and provide you with the legal guidance that you need throughout the course of any SEC investigation or prosecution.