What is securities or investment fraud?
Securities fraud, also referred to as investment fraud, is a white-collar crime that can be committed in a variety forms but primarily involves misrepresenting information investors use to make decisions. The perpetrator of the fraud can be an individual, such as a stockbroker. Or, it can be an organization, such as a brokerage firm, corporation, or investment bank. Independent individuals might also commit this type of fraud through schemes such as insider trading. Securities or Investment Fraud can also include the unlawful misappropriate of funds by investment advisers or other securities professionals and their employees.
The role of the criminal prosecution unit at the Attorney General is to solely evaluate, and when appropriate prosecute, criminal conduct that has a connection to the state of Colorado. The unit does not have the ability to initiate civil actions or take action against the licenses of securities professionals.
- Ponzi schemes, pyramid schemes, and late-day trading.
- False information, pump-and-dump schemes, or trading on insider information.
- Unlawful misappropriate of funds by investment advisers or other securities professionals and their employees.
Licensing and Regulation:
The Colorado Division of Securities located in the Colorado Department of Regulatory Affairs is responsible for licensing and regulating the conduct of certain licensed professionals in the securities industry including investment advisers who do business within the state of Colorado.
Tips on submitting a complaint
The more information you can provide about the situation, the more useful your report will be. If possible, be prepared to provide the following information:
File a Complaint
The Attorney General’s Office does not have authority to provide legal advice or legal representation to individuals and does not have the authority to investigate or prosecute your individual case.