NCJ Number
120577
Journal
American Criminal Law Review Volume: 26 Issue: 3 Dated: (Winter 1989) Pages: 995-1030
Date Published
1989
Length
36 pages
Annotation
Statutes prohibiting fraudulent practices in the securities market are identified and discussed, along with the legal elements constituting securities fraud, the defenses available in criminal and civil securities fraud actions, and the enforcement procedures carried out by the United States Securities and Exchange Commission (SEC).
Abstract
The eight statutes, along with their accompanying regulations, that comprise the Federal securities laws are discussed, with special emphasis on Section 10 (b) of the Securities and Exchange Act of 1934 and Section 17 (a) of the Securities Act of 1933. Types of substantive fraud are discussed in detail, along with relevant case law and defenses against the alleged fraud. The increase in insider trader litigation has drawn public attention to the inadequacies of current legal sanctions against insider trading. Legislative proposals to better define and punish insider trading are discussed. The role of the SEC in enforcement is discussed, with emphasis on such mechanisms as administrative proceedings, injunctive action, and criminal prosecution. 335 footnotes.