The United States learned a little more about investment fraud when Martha Stewart was indicted for the criminal offense of lying about a stock sale. Investment fraud happens when there is any sort of scheme or dishonesty used that relates to any investments in the stock market that would have an effect on an individual person or a company. Insider trading done in an illegal way happens when information is passed along that a stock is going to drop in price. A dishonest investor sells their shares of that stock to keep from losing any of his or her own money before the information is released to the public later that week. After the announcement, the stock price plummets, but those who practice investment fraud believe they sold their shares in the nick of time. Investment fraud is not always discovered.