Being accused of securities fraud is a very serious issue and something that you should not simply dismiss as a casual threat. If you have been dealing with a person in business who has accused you of securities fraud in a conversation or in writing, you should take immediate action to ensure that you can defend yourself if they try to take legal action.
Securities fraud is a very broad term to describe many different types of intentional misconduct relating to stocks and shares. Those who commit securities fraud usually do so by deceiving a person in order to benefit financially.
The first step in defending yourself
In order for a person to be successful in proving that you committed securities fraud, they must be able to show that you acted intentionally or recklessly. Therefore, a great place to start in your defense is to try and show that you acted neither intentionally nor recklessly.
You may be able to do this by showing that you made an honest mistake when it came to predicting future stock prices, for example. You could show that this mistake was justified because of the market conditions at the time. In other words, you could argue that although you gave advice that led to damages, you acted responsibly and with honest intentions.
By always providing thorough and well-researched advice about the current market, you will stand a good chance of avoiding accusations of securities fraud. If you are accused of fraud, however, by keeping all communication in writing, you should be able to retain all the proof that you need in order to successfully defend yourself.