Circular trading is a type of fraud in which investors are lured by the promise of high returns from investments that are actually part of a Ponzi scheme. In a Ponzi scheme, early investors are paid returns from the money invested by later investors, rather than from profits earned by the underlying investment. Circular trading … Read more
A corner is a situation in which a speculator (an investor who trades in securities in order to profit from short-term price changes) or a group of speculators has bought up so much of a particular security that they can control its price. This can be done by buying up all available shares of the … Read more
Duress is defined as a criminal act that is committed under the threat of violence or other harm. This can include threats to a person’s life, safety, or property. It can also include threats to a person’s reputation or business. Can you claim damages for duress? Yes, you may be able to claim damages for … Read more
Meaning, Types, and Examples. What is white-collar crime? White-collar crime is a type of crime that is committed by someone who is in a position of power or trust. It is often motivated by financial gain. Examples of white-collar crime include fraud, embezzlement, and insider trading. What are three types of crimes that would be … Read more
The term “daisy chain” is used to describe a type of financial fraud scheme in which one person or organization defrauds another by promising to pay them back with money that they have obtained from a third party. The scheme relies on the fact that the victim is often willing to believe that they will … Read more
Gun-jumping is the illegal act of acquiring or consolidating control over a target company before having received all required regulatory approvals. Gun-jumping can take many forms, but typically occurs when the buyer of a company takes steps to exercise control over the target company before all regulatory approvals have been obtained. This can include, for … Read more
The Financial Services Authority (FSA) defines “misselling” as “a marketing term used to describe a number of different situations in which a financial services provider gives incorrect or misleading information to a customer, or provides a product or service which is not suitable for the customer’s needs.” There are many different types of financial misselling, … Read more
A fraudulent conveyance is a transfer of property or money that is made with the intent to defraud creditors. This can be done by hiding assets, transferring property to a relative or friend for less than its fair market value, or by creating false documents. Fraudulent conveyance is a serious offense that can lead to … Read more
Undue influence is defined as the pressuring of an individual to make a financial or legal decision in favor of another person or party. This can be done through force, manipulation, intimidation, or by taking advantage of a person’s vulnerability. What are the 3 types of misrepresentation? There are three types of misrepresentation: 1. Active … Read more
A high-yield investment program (HYIP) is a type of investment scam that promises unusually high returns on investment (ROI). HYIPs typically promise high returns on investment (ROI), but they are actually Ponzi schemes. These schemes often use aggressive marketing tactics to lure investors, and they often promise higher than average returns. HYIPs typically promise to … Read more
