Securities and commodities fraud
Official text prohibited actmental stateif conditionpenaltylegal term
Whoever knowingly executes, or to execute, a scheme or artifice—
(1) to defraud any person in connection with any commodity for future delivery, or any option on a commodity for future delivery, or any security of an issuer with a class of securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l) or that is required to file reports under section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(d)); or
(2) to obtain, by means of false or fraudulent pretenses, representations, or promises, any money or property in connection with the purchase or sale of any commodity for future delivery, or any option on a commodity for future delivery, or any security of an issuer with a class of securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l) or that is required to file reports under section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(d));
shall be , or imprisoned not more than 25 years, or both.
History: (Added Pub. L. 107–204, title VIII, §807(a), July 30, 2002, 116 Stat. 804; amended Pub. L. 111–21, §2(e)(1), May 20, 2009, 123 Stat. 1618.)
Simplified explanation
It is a federal crime to knowingly carry out, or try to carry out, a scheme to cheat people or get money by lying in connection with commodities futures, options, or securities of companies registered with or reporting to the SEC.