THE LEGAL CONSEQUENCES OF FRAUDULENTLY INDUCING INDIVIDUALS TO INVEST MONEY: A COMPREHENSIVE ANALYSIS
AUTHOR – ANANYAA VARMA, STUDENT BENNETT UNIVERSITY
BEST CITATION – ANANYAA VARMA, THE LEGAL CONSEQUENCES OF FRAUDULENTLY INDUCING INDIVIDUALS TO INVEST MONEY: A COMPREHENSIVE ANALYSIS, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (2) OF 2024, PG. 190-196, APIS – 3920 – 0001 & ISSN – 2583-2344.
ABSTRACT
In today’s financial atmosphere, investment fraud is still a problem because of its offenders’ use of dishonest methods to persuade others to invest their money under false pretences. This research paper conducts a thorough examination of the legal frameworks, consequences, and difficulties related to the crime of deceitfully persuading someone to make an investment.
The first section of the article outlines the fundamental legal components of fraudulent inducement, highlighting the significance of purpose, materiality, misrepresentation, and reliance in determining responsibility. This study clarifies the complex interactions among these components in the prosecution of investment fraud cases in various jurisdictions.
In addition, the study compares the common law and civil law legal systems to examine the jurisdictional differences in the frameworks that regulate investment fraud. It draws attention to the many methods used to define, prosecute, and regulate fraudulent activity, highlighting the value of extradition treaties and international collaboration in the fight against cross-border scams.
The research paper also highlights and examines the various obstacles that come with prosecuting investment fraud, such as jurisdictional concerns, the intricacy of financial transactions, and obstacles to victim participation and reporting. The article provides insights into the practical challenges faced by law enforcement agencies and prosecutors in identifying, looking into, and prosecuting fraudulent schemes by drawing on real-world instances and comparative analysis.
In conclusion, the research paper emphasises on how important it is to empower and educate investors in order to stop investment fraud and shield them from financial abuse. Investor education initiatives play a crucial role in promoting a culture of financial literacy, resilience, and integrity by providing investors with the necessary knowledge and skills to identify red flags, undertake due diligence, and report suspicious activity.
All things considered, this research paper provides a thorough analysis of the crime of deceitfully persuading someone to invest money, including comparative viewpoints, case studies, legal analysis, and useful suggestions. In order to combat investment fraud and maintain the integrity of the global financial system, the paper aims to advance understanding, facilitate effective prosecution, and promote investor protection.
Keywords: Fraudulent Inducement, Investment Fraud, Financial Crime, Legal Framework, Prosecution, Investor Protection