How does securities fraud differ from insider trading and money laundering?

New York white collar criminal defense attorney, Priya Chaudhry, discusses how securities fraud is different than insider trading and money laundering.

Contact Priya Chaudhry

Email: [email protected]

Phone: 212-785-5550

Transcript:

So securities fraud generally involve some sort of fraud in the sale of a security. Money laundering can be for any crime for as I said drugs, or robbery, or murder. And insider trading involves trading a security based on inside information. So securities fraud could be any sort of fraud that involves a security. For example, someone could claim that they are selling their patent to Bill Gates and based on that everybody buys their stock. That’s a material misrepresentation made in order to sell the security or trade in the security that’s very different from insider trading. It’s just a lie.