|Securities fraud is a crime in which securities investing or trading laws have been violated. Security Fraud encompasses many things including stocks, bonds, commodities and other investments. Securities fraud can be described as deceptive practices in the stock and commodity markets. Securities fraud occurs when investors are enticed to buy securities based false statements. Securities fraud includes providing false information on a companies financial statement, SEC filings, lying to an auditor, stock manipulation schemes, insider trading, and embezzlement.