What is Securities Fraud?

Securities fraud is an activity that is deceptive or fraudulent involving stock or commodities. This deceptive behavior can then lead others to make financial decisions based on false information. This is also known as stock fraud or investment fraud and can include the acts of withholding key information, providing incorrect information, offering bad advice, and offering/acting on confidential information.

If you have a securities fraud case, you will need the help of a CPA expert witness testimony.

Common Types of Securities Fraud

  • Corporate Securities Fraud
    • Securities fraud can occur when individuals within corporations carry out fraudulent schemes by withholding or misrepresenting information about the corporation to manipulate stock prices.
  • Individual Securities Fraud
    • One of the most well-known forms of individual securities fraud is insider trading. This is when an individual with confidential information uses that information to participate in stock market trading to make a profit. It is also considered a securities fraud if an individual with confidential information uses that information to influence the stock market.
  • Third-Party Securities Fraud
    • This occurs when a third party deliberately puts out misleading information to influence the stock market and/or make a profit. One common type of third-party securities fraud is known as a “pump and dump.” This when an individual purchases stock from a company that is not well known, buying up large amounts of the company’s shares. The individual will then spread false information to encourage others to buy stock in the same company, driving up the price of the stock so they can sell their share and make a large profit.

Each type of securities fraud case can include complicated financial statements that are often meant to be misleading or confusing. In this case, you would want an expert financial witness who can sort through these statements and explain them.

Why You Would Need to Hire a CPA Expert Witness

When you hire a CPA expert witness and certified fraud examiner from Thomas Neches & Company LLP, you know you are getting decades of experience and expertise to work on your case and review business records, financial statements and more so you can get what is owed to you.

Representative Securities Fraud Engagements

SideCase NumberCase NameAttorneyLaw FirmTestify
Def83-4742-AWT (Tx)Securities Investor Protection Corp. v. Seymour Vigman, et al.Steven GourleyGourley & BursteinDepo
DefCV-90-4018-TJH (Tx)Calico Holdings Corp. v. Howard M. PetersonYolanda OrozcoO’Neill, Lysaght & SunDepo
PlnRCV 14398Metric Machining Co., Inc. v. Robert L. RellyChristopher J. ArndtArndt & Doyle
PlnGIC 736398Southern California Edison Company, et al. v. Sumitomo Corporation, et al.David J. NoonanPost Kirby Noonan & Sweat
Pln02-02384Swab Financial, LLC v. E*Trade Securities, Inc.Luan K. PhanPaz & Phan