SECURITIES FRAUD

What is a security?

The definition of a security encompasses many things; generally, a security
includes stocks, bonds, commodities and other investments.

What is securities fraud?

Securities fraud can be described as deceptive practices in the stock
and commodity markets. Generally, securities fraud occurs when investors
are enticed to part with their money based on untrue statements. Securities
Fraud is illegal.

Examples of securities fraud:

A) Providing false information on a company financial statement.
B) Providing false information on Securities and Exchange Commission
(SEC) filings.
C) Lying to the company auditors.
D) Insider trading.
E) Stock manipulation schemes.
F) Broker embezzlements.

Who may be involved in securities fraud?

Securities fraud may be committed by, among others, investors, employees
of a brokerage houses, corporate executives or their shareholders,
or by other market participants.

What can I do to assist in combating securities fraud?

Securities Fraud destroys our confidence in the securities and investments
markets and casts doubt over investments into legitimate companies.
Therefore, it is very important to identify and report these crimes.

Securities fraud schemes are very secretive and are carried out behind
closed doors.

The FBI does not advocate citizens acting on their own
to investigate criminal activity. Rather, we strongly encourage
citizens to take action by notifying the FBI or other law enforcement
agencies whenever they believe a crime may have occurred.

YOU CAN MAKE A DIFFERENCE- STOP SECURITIES FRAUD.
ALL CONTACTS WILL BE KEPT CONFIDENTIAL.

Any one with information regarding potential Securities
Fraud violations is encouraged to contact the San Francisco Division
of the FBI, via Email at, sq14a.San.Francisco@fbi.gov ,
or call (415) 551-7100, toll free (800) 207-7676

For more information about the FBI, please see the FBI's main Web
Page at www.fbi.gov ,