Q: What's brown and sounds like a bell?

A: DUNG!

(Most securities fraud cases come under federal law, so it would be a U.S. Marshal or the FBI making the arrest. Typical SEC practice is that a person under investigation for securities law violations gets a "Wells Notice," which sets forth what kind of trouble they're in. [See: https://en.wikipedia.org/wiki/Wells_notice ] So it's rare to be caught by surprise. State-law securities violations are less common, but they do happen, and would usually involve the state police. It would be highly unusual to see the local police make such an arrest.)

My pun senses are tingling... A terrible play on words is in the offing...

Really? Mine aren't. What pun do you think the cartoonist is going to make?

That's what I'm waiting to find out. :)

So, did you ever find out?

Not yet...

don't answer him it's a trap

Sounds like our reindeer friend's name is a play on words right there.

Oh no! It's the fuzz!

You never learned how to land ;n;

What’s securities fraud?

It's an excuse to move the plot along.

No but seriously what is it?

I dunno. I didn't actually bother researching it.

Under United States federal law, "securities fraud" is a broad term that encompasses violations of the various securities laws (principally, the Securities Act of 1933 and the Securities Exchange Act of 1934, as well as certain other major laws, and the regulations promulgated by the United States Securities and Exchange Commission under these laws), and most commonly involves making false statements or false representations in the registration and sale of securities or the reporting (or non reporting) of certain required information relating to registered securities. "Securities" in this sense is a very broad term, though as a general rule it applies to things like stocks and bonds, the most common types of securities. "Securities fraud," in United States usage, can also encompass violations of applicable state laws, though since the 1930s, this tends to greatly overlap federal law on the subject.

Specific kinds of fraud regarding the purchase, sale or valuation of securities, (stocks, bonds and such). An example would be a "pump-and-dump" where someone who owns a significant amount of a stock engineers interest in it to spike the price, (the pump), then when the price is high they quickly sell their stock, (the dump).

("Pump and dump" is a decent example of securities fraud, and would involve, principally, the violation of the laws and regulations under the Securities Exchange Act of 1934 relating to market manipulation. It's but one type of securities fraud, albeit one that's seen fairly commonly, especially in the trading of thinly traded, cheap stocks, what used to be called "penny stocks" or "pink sheet stocks" [from the colour of the paper that used to be commonly used to report trading activity in those stocks].)

I shoulda had Zwendel being arrested for running over Grandma.