Created by FindLaw's team of legal writers and editors | Last reviewed March 13, 2018
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Securities fraud is a broad term for various crimes that involve some form of market manipulation involving financial instruments such as stocks, bonds, and other securities. There are many ways that participants can engage in securities fraud including investor fraud, insider trading, false advertising, and accounting fraud, among other violations.
Like any form of fraud, securities fraud can involve a misleading statement. For instance, an attorney works with a promoter in a scheme to create and sell public shell companies with no real business. When the attorney prepares the SEC filings, the filings contain misrepresentations, stating that the companies are owned by various individuals and are legitimate businesses.
Because securities fraud is governed by both federal and state laws, legal actions can be initiated by private investors or by a government agency such as the U.S. Securities and Exchange Commission (SEC). Thus, depending on the circumstances, a fraudster can be charged with crimes under federal law, New Jersey law, or both.
The chart below provides a summary of statutes related to New Jersey securities fraud laws, including links to important code sections.
Statutes |
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Elements of the Crime |
Sales and Purchases: It is illegal for any person in connection with the offer or sale of any security to engage in the following:
Prohibited activities involving securities:
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Penalties |
Possible penalties may include a permanent ban from trading securities, incarceration and/or fines. The actual penalties will depend on the specific circumstances of the case. |
Related Offenses |
Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
If you're being investigated for violating New Jersey's securities fraud laws, then you probably want to get a handle on your case right away. Your freedom, security, and reputation are at stake. Don't delay discussing your case with a criminal defense attorney who can mount a solid defense on your behalf.
Contact a qualified attorney.
Get tailored advice and ask your legal questions. Many New Jersey attorneys offer free consultations.
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