Securities Fraud Attorney
Securities fraud involves fraud or deception in stock market activities. This can include using manipulation or tricks, false statements or conspiracies that affect the stock market. Securities fraud often tie in with other types of Fraud such as Accounting Fraud which would be used to cover up the illegal stock market activity. Anyone accused of an alleged financial crime needs to retain an expert securities fraud attorney as quickly as possible because a conviction would result in harsh punishments, ruined careers and damage to businesses.
Like many fraud and white collar crimes, stockbrokers, traders, lawyers and accountants are commonly charged with securities fraud. Although serious stock market conspiracies are the chief purpose of federal securities crimes, even low level company-men or college students could be at risk for allegations of a fraudulent scheme. The SEC and federal courts have both civil and criminal penalties that could apply to anyone in a diverse range of people. There are four main types of securities frauds:
1. Churning: this involves making trades for an investment account by a broker in order to generate additional commission at the expense of the client’s profits. Courts usually look at the turnover rate of an account. In cases of churning, the assets are traded extremely often, and commission is frequently paid, resulting in a quick decline in the value of the account.
2. Insider Trading: means that corporate stocks or securities are traded by people inside the company such as directors or key employees. It becomes illegal when an individual makes trades based on non-public information that they receive as a result of their corporate duties. Insider trading often occurs when private information or secrets are relayed to other people who might buy shares from the company.
3. Outsider Trading: seeks to prosecute those who are outside the company who receive secret information. The reasoning of the courts is that those who should know that the information they received resulted in a breach of trust should be held criminally responsible if they use it for trading.
4. Pump and dump: has two distinct phases. During the ‘pump’ phase the salesman or telemarketers use high pressure sale techniques to convince customers to buy stock that is unreliable. The tactics alone result in an inflation of that stocks value. The next phase is the ‘dump’ where the investor sells off their portion of the stock in order to get the profits from its rise in value. The stock will then lower in value and cause most investors to lose money.
We Can Help
Our securities fraud attorneys are prepared to defend our clients against any charges of securities fraud. We will devote all of the firm’s resources to protecting the rights of you and your business. With our experience in both federal and state courts, we can provide a full defense against securities fraud or related charges no matter what law enforcement agencies or powers of prosecution have been brought against you. Securities fraud can become complex as it can sometimes depend on small distinctions between legal and illegal activity. Our criminal defense team is ready to devote the resources necessary to successfully defend against complex cases of fraud. If you or your business are under investigation or have been charged with securities fraud Contact our criminal defense attorneys as soon as possible to arrange a consultation.