How to Report Stock Fraud
Securities fraud (also called investment fraud or stock fraud) is the practice that persuades an investor to buy or sell securities (investment instruments such as stocks, bonds and shares) using false, misleading or deceptive information---a direct violation of the laws enforced by the Securities and Exchange Commission(SEC). These practices most often result in financial losses to the investor and may adversely affect a large number of other investors.
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Instructions
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Contact the Securities and Exchange Commission. The SEC enforces financial and investment laws passed by congress and various administrative agencies. They may work in conjunction with other law enforcement agencies, such as the Treasury Department, US Postal Service, and Federal Bureau of Investigations. Investors that suspect stock fraud can make an anonymous tip or file a formal report. (See Resources 1)
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Contact the Securities Fraud Prevention Organization (SFPO). Though this organization was founded in the United States, it now has an international presence as securities fraud can involve investment instruments in several different countries---all with distinct jurisdictions. (See Resources 2)
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Contact the Financial Industry Regulatory Authority (FINRA). Formerly known as NASD or the National Association of Securities Dealers, FINRA is a non-governmental, self-regulatory agency that oversees the operation of the National Association of Securities Dealers Automated Quotations or NASDAQ stock market. (See Resources 3)
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Tips & Warnings
If you are a victim of stock fraud, consult an attorney immediately
Employees of investment houses or corporations are afforded legal protection from unfair termination under the federal "whistleblower" statute.
References
Resources
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