Investors in Louisiana likely wish to see honest returns and doubtfully want to learn they suffered losses based on false advice or information. They most assuredly don’t want to learn their investment portfolio is worthless due to an advisor or broker’s illegal actions. Unfortunately, such incidents may occur sometimes. Those accused of securities fraud based on allegations of impropriety could face serious legal charges.
Examining incidents of securities fraud
Securities fraud could take many forms, and taking an investor’s money and not putting it into the agreed-upon vehicle would be one example. Telling a broker to purchase Stock A only to discover the broker purchased Stock B may leave the professional looking at legal woes. That’s one illustration of how someone could face accusations of securities fraud.
Securities fraud involves false statements or misrepresentations intended to drive other people’s financial decisions. For example, being untruthful about quarterly profits or losses might move someone to buy stock under false pretenses. Those who lie to investors or otherwise engage in illicit behaviors may face federal charges and the risk of prison time.
Accusations of securities fraud
As would be the case with other white-collar crimes, anyone accused of securities fraud might face a criminal investigation. Persons dealing with an investigation may benefit from invoking the right to remain silent and only answering questions with a lawyer present. The investigator could attempt to convince a suspect to self-incriminate, and certain statements might create trouble for a defendant.
Many issues might arise during the pre-trial period, including questions about whether the police followed appropriate procedures. Violating a suspect’s rights could make evidence inadmissible.