Research On Legal Liability Of Securities Fraud

"Securities fraud" originates from "fraud" in civil law, but it has the broken through the original meaning. Securities fraud is not only different from securities default, but different from those in other fields. Generally, It is different in broad sense and narrow sense. In broad sense, it means any violation against the principle of fairness and the principle of honest and credibility, including false statement, inside transaction, manipulation of the market and cheating clients. In narrow sense, there is no definite concept for it. It is regarded as same as cheating clients or false statement. The thesis adopts the concept of securities fraud in broad sense because of the narrow range of the securities in narrow sense. Moreover, the thesis focus on the liability of the fraud, therefore, except that the cheating clients and false statement must be banned, the other frauds that lead to disrupt the market and damage the investor's interests should all be forbidden by law.The securities fraud can be defined as false statement, inside transaction, manipulation of the market, and cheating clients according to the features of the securities fraud. These four kinds of securities frauds happen most frequently in the securities market. What is the difference among them is just the way of the fraud. The securities law system can't break away from the law. The securities law is the basic guarantee of the fairness, publicity and justice of the securities market by forbidding the frauds.The value of researching the legal liability system of securities lies in looking for those factors hidden in the regulations but controlling the regulations. Such principles as fairness, justice and publicity; safe, order and efficiency; compensation and punishment embody the value of securities legalliability.Whoever commits the securities frauds, if the circumstances are serious, the case will constitute a crime, his criminal liabilities shall be investigated in accordance with the law. The concept of securities crime can be described as: the issuers, the securities companies, the departments for securities administration and securities service and other related organizations as well as the employees of those organizations ,violate the regulations of securities, such as issuing stock without approval, transacting with inside information fabricating and spreading false information, manipulating the stock exchange market, if the circumstances are serious, the case will constitute the securities crime.At present, the features of the crimes of securities are: the various subjects of the crimes; uncertain of the victims; profession of the crimes;As to the elements of the crimes of securities, there are such characteristics as following: the object is the social relations protected by criminal law but violated by the crimes; the subject include the natural person and unit; the subject are deliberate; the objective elements are shown as violating the securities regulations in the activities of issuing stocks and exchange of the stocks and the circumstances are serious.As to the securities crime with the feature of fraud, that bearing the criminal liability and punishing the criminal can be seen as the two sides of a coin. The behaviors in accordance with the elements of the crime must lead to bearing the criminal liability, but not the criminal punishment. If the behavior is in accordance with the elements of the crime, whoever commits it will be sentenced to be guilty, but if the circumstance is minor, he may be exempted. It is also be said that the judgment of guilty sentence can be regarded as a way to bear the criminal liability. Even if the criminal is exempted from thepunishment, he will be criticized and condemned by the masses. But the criminal punishment is the main way of bearing the criminal liability, which is meaningful to precaution and punishing the securities frauds.The prerequisite of bearing the administrative liability is that the person violates the regulation. The of bearing the administrati...