Under the Securities Act of 1933 and the Securities Exchange Act of 1934, Securities Fraud is defined as willfully engaging in deceptive practices intended to manipulate financial markets or induce investors to make financial investment decisions based on deceptive or false information.

What is considered security fraud?

Securities fraud is illegal or unethical activity carried out involving securities or asset markets in order to profit at the expense of others. ... Securities fraud can also include false information, pump-and-dump schemes, or trading on insider information.

Is securities fraud a crime?

Securities fraud is a felony offense. Penalties for being convicted of securities fraud can include: Up to 25 years in prison. Fines.