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Who investigates securities fraud?

On Behalf of | Sep 7, 2022 | White Collar Crimes |

Securities fraud is a serious offense that has affected many people in Greenville, South Carolina over the past ten years. It is not investigated in the same way as many other crimes. The Securities and Exchange Commission (SEC) is the organization tasked with investigating securities fraud. Such investigations are just one of the many ways the SEC ensures the integrity of the securities.

SEC and securities fraud

Securities fraud is the act of lying to obtain property in the form of securities. This action is dangerous to the overall economy because it challenges the accepted rules and regulations that bring honesty and clarity to securities markets. The general public relies on these markets for retirement savings and economically beneficial investments. Money must remain plentiful and liquid in the world of securities.

In order to keep the general public using securities, they must be convinced that nobody is gaming the system or stealing their money. The SEC is the watchdog that accomplishes this task for the federal government. They tackle many types of fraud and white collar crimes including insider trading. Insider trading prosecutions help to ensure that companies and their operators are honest about their own investments in companies they are familiar with.


Securities fraud is a particularly sensitive and complex type of fraud. But when it comes to investigations, it is often examined like any other type of fraud. In order to determine whether or not securities fraud has occurred, investigators look at communications and subpoena any documents associated with the securities transaction.

In cases of insider trading, they will often collect evidence of any conversations that a person may have had with insiders at a company. Through this effort, they hope to piece together a narrative that will show securities fraud taking place. The SEC has an important task in the financial world that fraud investigations help to uphold.