Security fraud is widely thought to be one of the most serious crimes in California in particular and in the USA in general. As a lawyer, I have faced different cases of the security fraud thousand times, but I have to admit that all of them were rather wise and pretty hard to distinguish. In this following article, I will tell you the main peculiarities of such a deal and how to guard yourself against such a fraud. You will be surprised of how many things depend on you in such a case. Let us begin.
What is Security Fraud?
According to the California legislation, the security fraud is an office crime that can be committed in the variety of cases. It can be committed in the big corporations, stocks, investment banks, etc. The security fraud can include such scheme as foreign currency fraud, broker embezzlement, hedge fund related fraud, pyramid schemes, and others. The security fraud is terribly hard to distinguish and prevent. As a rule, the fraudsters are well-experienced people who know their deal and will definitely do their best to commit a crime without any evidence. The fraudsters are constantly searching for the investors in their “business” and tend to have an influence on the financial markets, stocks, etc. The security fraud also involves such actions as:
- Representing false information
- Spreading the bad news about this or that company, as a rule, such information is false
- Giving false advice to the companies, firms, stocks, etc.
All the wrong information that was delivered by the fraudsters is considered to be a crime that must have a punishment.
How to deal with Security Fraud?
As a rule, the high-level of the security fraud is something truly not obvious. You can think that this crime is really something legal and well-profitable. I suggest taking as an example the pyramid scheme. This is a vivid example of the fraud itself. When an organization provides such a deal, they usually involve a great number of people to this deal. The main idea is that you are the member of the big and booming company that needs more people and working places. Actually, in the pyramid scheme there is a basic idea, the more you see the better will be the result and the bigger profit you can obtain. Unfortunately, this is not the truth. It does not matter whether you work hard or not, the profit will be considered only at the leaders of such pyramids. But we have already reflected on the security fraud in general, come back. As usual, the false statements about the financial profit of the company occur when false statements are provided by the fraudsters. The release of the confidential information about the deals in the company, the valuable papers, and another leakage is also considered to be the security fraud. Pay attention to the contracts which you are signing with the companies who hire you because in these contracts may be hidden the issues that any media leak of the private system will be punished by the fine or even by the imprisonment. You may have noticed that the celebrities are also forbidden to tell around any information connected with the private life, relations with other celebrities, quarrels, and scandals, etc. One of the most famous scandals was, for instance, with Kim Kardashian when some of her private photos and videos were released to the public, moreover, the person who did it became a criminal and, as far as I remember, was even convicted for the suspended sentence. Such a scandal appears in show business almost every day, so be aware of the secrets of your company but do not tell them away in order not to have the same troubles.
How to protect yourself from Security Fraud?
State and Federal governments of California do their best to protect the citizens from the security fraud, but anyway, there are a lot of cases of this crime. For example, the person who is a constant player on the stock should pay attention of who is also a current user of such a system and if something seems to be wrong, it is better to call the police and tell them about some suspicious event happening right now. There are several signs of the security fraud in California, so here are some of them:
- The broker does not answer the phone calls
- Your accounts have the transactions that you did not commit
- You are in debts but the company manager tells you that you are in black
- Your broker does not tell you significant information according to the investment process
These and other signs tell you that you should immediately inform the legal bodies about the fraud invasion. I can tell you that I had one deal when a woman had a big leak from her credit card, but she did not withdraw any money from it. She noticed it but did nothing because she thought it was just a commission for the usage of the card. Unfortunately, it was not the commission. In several days, all her money disappeared from her credit card. There was one transaction from her account, but it was a crucial one. She called the police and me but the card was blocked of course and the police could do nothing. They told that if she had applied to them earlier, the fraudsters could not take the money. I insisted on the compensation from the side of the bank, it was finally done, but the spoiled mood and a big loss of money was a good lesson for her life.
In general, you have a right to fight for your money till the very end, you can call the best attorneys and do your best to achieve the bank compensation or the imprisonment of the fraudsters, but the sooner you notice a problem the easier it will be liquidated. The company can misbehave or misconduct several issues, if it is so, you should immediately apply to the legal bodies. In California, this crime is severely punished, so do not let the fraudsters to get your own money and private information.