Securities Fraud
Working in the securities industry is a very stressful and potentially dangerous profession. Not only is the entire profession under the close scrutiny of The United States Securities Exchange Commission (SEC), but there is both high pressure to perform placed on professionals and the seduction of the potential for incredibly large profits for innovative and creative thinking to deal with. Because of these factors, there is a large potential for the actions of investment bankers and professionals in the financial industry to be accused of securities fraud. If you have been contacted by FINRA, The SEC, The DOJ, or an internal compliance department regarding acts of alleged securities fraud contact, the securities fraud lawyers at The Blanch Law Firm today and begin the fight to protect yourself from what could be devastating consequences.
What is Securities Fraud?
Securities fraud investigations are very thorough and may involve many different prosecuting attorneys’ offices from The Federal Government. Only an experienced white collar securities fraud lawyer can help protect you from serious fines and criminal penalties. Actions that can result in securities fraud charges include but are not limited to:
- Insider Trading: The most well known type of securities fraud is insider trading. Buying and selling securities on the basis of information that is not publically disclosed can result in serious criminal penalties as well as fines.
- Stock Fraud: Providing false information that was crucial to the sale of a security.
- Stock Options Back Dating: Dating a stock option before the date that it was actually granted can result in its option value rising and its exercise value lowering. While stock option back dating is not illegal per se those actions can involve the act of falsifying business records which is illegal.
- Front Running: Purchasing or selling stock for yourself before making a large order in order to obtain a profit.
- Short Selling: Abusive short selling can be determined to be illegal. Short selling a stock in order to manipulate the price of the stock can result in a lengthy and costly investigation by The SEC.
- Investment Fraud: Recent court decisions have shown that prosecutors and judges are not pulling any punches against those convicted of alleged investment fraud. Investment fraud charges are serious and need a team of skilled white collar attorneys dedicated to protecting those who are charged form facing serious penalties.
- Late –Date Trading: For mutual funds, 4pm marks end of all trading. The values of net assets are not supposed to change until the market opens again. The penalties for late-day trading can be very severe if you are not protected by a firm of experienced securities fraud attorneys.
- Market Manipulation: Charges can arise when intentional interference occurs with the free and fair operation of the market.
- Shareholder Fraud: Allegations arise when employees of a corporation are alleged to have intentionally misled or withheld information from shareholders. These allegations can accompany a lawsuit filed by shareholders as well as charges by either The SEC or The United States Department of Justice.
- Accounting Fraud: Manipulating revenue through fraudulent accounting practices in order to drive up the value of a particular stock.
Penalties
Many jobs in finance are dependent on the person filling the position to have an appropriate license. If a securities fraud investigation is not answered by a skilled securities fraud attorney, the result may be a permanent or lifetime ban from trading securities. Being banned from one industry as well as having a criminal record makes entering any new profession (that does not involve flipping a burgers or picking up trash) about as hard as can be. This is why you need a skilled securities fraud lawyer to protect your interests when you come under investigation. It is always harder to correct mistakes that were made in the past after they have been made than it is to deal with them the right way in the first place.
Aside from the threat that they pose to the future of your career, securities fraud investigations expose those accused to the risk of serious time behind bars. Investigations by The SEC will not result in a criminal sentence, but The SEC does have the power to refer your case to The U.S. Department of Justice, which can result in serious criminal charges resulting in jail time.
One such charge may be money laundering, where the penalty is up to 20 years in jail and as well as a penalty of up to $250,000 or twice the value of the assets that are alleged to be laundered. Others may include wire fraud or RICO charges which also carry serious penalties. If you are facing an indictment for money laundering as a result of alleged acts of securities fraud, there is a good chance that you are also facing some sort of asset forfeiture, or at least dealing with the inconvenience of having some, or all of your bank accounts frozen.
The Blanch Law Firm Can Help
The securities fraud defense lawyers at The Blanch Law Firm are experienced at facing off against government investigations and are dedicated to getting the best result possible for their clients. Look at their case results and you will see that while you may feel like The Government has you trapped in a corner, there is always something that can be done. The Blanch Law Firm is an experienced white collar defense firm whose cases are covered in such notable publications as The Wall Street Journal and The New York Times. Contact the skilled securities fraud defense attorneys at The Blanch Law Firm Today and begin the fight to take back your freedom.