Is securities fraud a felony?
Editor • July 24, 2024
Any type of fraud can lead to significant losses for unsuspecting victims who might be unaware of the crime until it is too late. The same goes for securities fraud. This offense involves people entrusting their finances as investments to individuals or institutions posing to operate legitimately. These crimes often involve significant amounts of money, affecting the severity of charges and penalties.
Most incidents of fraud are felonies, becoming more serious based on the amount of money involved. The degree of the crime can vary according to the following:
- Involves an amount less than $10,000 – The offense is a third-degree felony.
- The amount exceeds $10,000 but is under $100,000 – The crime is a second-degree felony.
- It is or exceeds $100,000 – The offense is a first-degree felony.
Additionally, timelines could play a vital role in indicting perpetrators. An indictment might only happen if a party brings about charges within five years after the crime occurred, meeting specific conditions before qualifying as fraud.
The details of the crime can also rope in people indirectly involved in it, including individuals who made inaccurate or untrue statements to mislead and deceive. But sometimes, these named accomplices could be victims fooled into believing that the transactions or business operations are legitimate.
Understanding where you stand when facing securities fraud charges
Becoming subject to securities fraud charges can be scary and overwhelming. In these situations, the first step to developing a defense could be understanding all the case details and receiving legal guidance. Experienced advice about these scenarios can be helpful when learning about the possibilities and determining appropriate options, which may change according to the case’s progression. There might be no way to guarantee a favorable outcome, but preparing can help keep the legal process fair from start to finish.
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