The commission of a white-collar crime in Michigan can take many forms. These include several varieties of securities fraud. It’s important to be totally up-front about the nature of your investments in this area. Even an accidental report that contains misleading info can be viewed as a type of securities fraud or white-collar crime.
Securities fraud can be committed by the company
Securities fraud has become one of the most common and costly white collar crimes in the past few years. This is partly because the dawn of the internet age has made it much easier to gather this info and put it to use. Most people will use the info for fully legitimate reasons. However, some use it to commit crimes.
Securities fraud can happen when a company doesn’t report the truth about its current financial info to its shareholders. This can raise the value of stocks and cause people to invest even more money in the company. What they don’t realize is that this rise is artificial. When the company collapses, investors will have nothing to show.
Insider trading is a form of securities fraud
Stastistics gathered on white collar crimes show that securities fraud is unfortunately on the rise. As a result, you need to be aware more than ever of the many different forms that this type of crime can take. One of the most common is insider trading.
Insider trading occurs when someone with confidential information about a certain company uses it to make a decision with the intention of benefitting from it financially. They can decide to buy or sell stocks, depending on the nature of the info they have received. This is called “insider trading” because you are using data the public has no access to.
It’s not enough to say that you didn’t know that you were committing a crime, so a cursory understanding of financial law can help keep you avoid making a costly mistake.