18 U.S.C. § 1348 – Securities and commodities fraud
This law makes it a federal crime to defraud investors or traders in connection with securities or commodities.
Section 1348 targets fraud involving stocks, bonds, investment securities, and commodities such as futures or options. It was designed to give federal prosecutors broad authority to pursue serious investment fraud, similar to how mail and wire fraud laws work.
What the law prohibits.
A person violates this statute if they knowingly:
- Defraud someone in connection with the purchase or sale of securities or commodities.
- Use false statements, deceptive promises, or misleading information to obtain money or property tied to an investment transaction.
- Carry out or attempt to carry out an investment fraud scheme, even if it does not succeed.
The law applies to publicly traded securities and regulated commodities, including stocks registered with the SEC and certain futures or options contracts.
Penalties.
Securities and commodities fraud under § 1348 is a serious federal felony. A conviction can result in:
- up to 25 years in federal prison,
- substantial fines, and
- asset forfeiture or restitution to victims.
The government does not need to prove that the fraud was successful. An attempted or partially executed scheme can still lead to criminal charges.
If you’re facing allegations involving investment or securities fraud, call (314) 900-HELP or contact our criminal defense attorneys to discuss your situation.
