Securities fraud, a civil wrongdoing and white collar crime, is a type of fraud that takes place in connection with security trading. Because it is a civil wrongdoing, securities fraud can often result in liability lawsuits, where an investor holds some other party – such as a corporation, broker, or advisor – liable for financial damages that allegedly have resulted from the fraud. A securities fraud lawyer can provide legal representation to either side, litigating for the investor or defending the accused perpetrator of fraud. In either case, it is important that a securities fraud lawyer understand state security laws (Blue sky laws) and laws of the SEC and NASD. The SEC and NASD are agencies commissioned by the government to protect consumers from securities fraud, including corporate fraud, insider trading, ponzi schemes, microcap fraud, and accountant fraud. Also, securities fraud lawyers can represent accused parties who face criminal prosecution.