Decatur, Illinois Securities Fraud Lawyer
Although the stock market can often seem like the “Wild West,” in reality securities markets are heavily regulated by the federal and state governments. Anyone suspected of trying to illegally game the system can face criminal charges of securities fraud. And we are not talking about the equivalent of a traffic ticket here–these are felony charges that can lead to multiple years in prison and the possible seizure of your assets.
So if you have been charged or are under investigation by the Securities and Exchange Commission or prosecutors, it is imperative that you contact an experienced Decatur, Illinois securities fraud lawyer without delay. At Patel Law, PC, we represent clients who are facing allegations of illegally attempting to manipulate markets.
How the Government Defines Securities Fraud
Federal law basically criminalizes two types of behavior associated with securities fraud. The first is committing fraud in connection with a specific transaction. The second is obtaining money in connection with a securities transaction by making false or fraudulent promises or representations. It is crucial to note here that the crime occurs in the attempt, not the success. So it is possible to be tried and convicted of securities fraud even if you never actually profited from the fraudulent transaction.
In practical terms, there are a number of actions and behaviors that can lead to a securities fraud charge. Some of the more common examples include:
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Insider Trading. Companies that are publicly traded on a stock exchange must follow certain rules when disclosing information to investors and the public. If a corporate “insider,” such as an officer or key employee, uses non-public information to make a transaction, that is considered insider trading, which can be prosecuted as a form of securities fraud.
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Outsider Trading. Similar to insider trading, when an “outsider” illegally obtains non-public information about a public company–say due to a data breach–and uses that information to make a stock transaction, that too can be prosecuted as securities fraud.
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Accounting Fraud. This refers to a situation where a public company is caught “cooking the books,” i.e., manipulating or falsifying publicly available financial statements to misrepresent the company’s financial status.
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Pump and Dump Schemes. This is a scenario where the price of a stock is artificially inflated through false, misleading, or exaggerated statements and then “dumped” at the higher price before it falls back down again.
Contact Patel Law Today
A federal securities fraud conviction carries a maximum penalty of 25 years in prison. In addition, prosecutors may pursue several additional charges, such as wire fraud and criminal conspiracy, which can significantly increase a potential sentence. That is why it is crucial to be proactive when defending yourself against possible securities fraud charges.
Criminal defense attorney Baku N. Patel and his team have years of experience when it comes to defending clients against these sorts of charges. So if you need to work with a Decatur, Illinois securities fraud lawyer, contact Patel Law, PC, today to schedule a free case evaluation.
