Securities Fraud Attorneys Defending Clients in Federal Cases Nationwide
Federal securities laws prohibit a broad range of fraudulent activities that, when discovered, can result in steep fines, other financial penalties, and federal imprisonment. At Spodek Law Group, we represent clients across the country in securities fraud investigations and criminal cases. This includes, but is not limited to, investigations and cases focused on:
- Fraudulent investment marketing practices
- Ponzi schemes and other investment scams
- Market manipulation
- Trading on inside information
- Wire fraud related to securities transactions
- Other fraudulent practices targeting investors
When facing allegations of securities fraud, it is critical to engage experienced securities fraud defense counsel as soon as possible. Federal authorities take securities fraud extremely seriously, and they have the resources to aggressively pursue charges against individual and corporate targets. As a result, companies and individuals facing securities fraud allegations need to be prepared to defend themselves effectively, and this starts with engaging experienced defense counsel immediately.
Securities Fraud: An Overview
Securities fraud can take many different forms; and, as a result, the Federal Bureau of Investigation (FBI) and other federal authorities can pursue charges in a wide range of circumstances. Even if your company is not directly in the business of selling or trading securities, it could still face allegations of securities fraud—and so could its owners, executives, and employees. With this in mind, here are some of the most-common allegations in federal securities fraud cases:
1. Fraudulent Investment Marketing Practices
The Securities and Exchange Commission (SEC) regulates the marketing of investments to both accredited and non-accredited investors. While the SEC’s rules differ for both types of investors, violations of these rules can lead to securities fraud charges in many cases. The FBI can pursue securities fraud charges outside of the SEC’s jurisdiction as well, and it does so in many cases involving fraudulent investment marketing practices. The FBI pursues securities fraud charges against individuals and companies accused of:
- Misrepresenting the risks associated with an investment
- Misrepresenting the expected return on an investment
- Misrepresenting the status of an investment offering
- Misrepresenting a company’s financial health or prospects
- Misrepresenting the use of investment funds
- Intentionally providing misleading information (or intentionally omitting material information) in a Form 10-K, Form 10-Q, or similar disclosure
These are just examples. While charges for fraudulent investment marketing practices are often filed under 18 U.S.C. Section 1348, these cases can also involve other federal statutes, and authorities may pursue charges under a broad range of other circumstances as well.
2. Ponzi Schemes and Other Investment Scams
The FBI and other authorities pursue securities fraud charges against individuals and entities accused of perpetrating Ponzi schemes and other investment scams. These types of cases often involve allegations of violating 18 U.S.C. Section 1348 as well. However, for each victim, authorities may be able to pursue multiple charges based on violations of multiple statutes. This means that defendants in securities fraud cases related to Ponzi schemes and other investment scams can often face the risk of hundreds or thousands of years of federal imprisonment.
3. Market Manipulation
Market manipulation involves using fraudulent means to create an inaccurate impression of a security’s true value. Market manipulation cases often involve allegations of artificially inflating (or deflating) a stock price; and, as a result, investors who purchase shares based on the stock’s artificially high or low price may have the opportunity to pursue civil claims. In addition to facing criminal penalties in federal securities fraud cases, defendants can also face civil liability when investors lose money as a result of their fraudulent practices.
6. Other Fraudulent Practices Targeting Investors
The FBI and other authorities pursue securities fraud charges in other circumstances as well. This includes circumstances involving fraudulent practices targeting investors. If you are facing allegations of criminal practices targeting investors related to securities offerings or trading, you need to engage experienced defense counsel immediately, and you should schedule an appointment at Spodek Law Group right away.
The Penalties for Securities Fraud
As discussed above, the penalties for securities fraud can include both substantial fines and long-term federal prison sentences in many cases. For example:
- Securities Fraud (18 U.S.C. Section 1348) – Fine and federal prison sentence of up to 25 years
- Wire Fraud (18 U.S.C. Section 1343) – Fine and federal prison sentence of up to 20 years
- Securities Fraud (18 U.S.C. Section 1348) and Wire Fraud (18 U.S.C. Section 1343) Involving a Financial Institution – Fine of up to $1 million and federal prison sentence of up to 30 years
Crucially, these penalties apply on a per-offense basis in securities fraud cases. When federal authorities pursue charges involving multiple transactions or multiple investors, defendants can face multiple counts carrying hundreds or thousands of years behind bars.
But, even for a single offense, the penalties for securities fraud can be significant. As a result, when facing securities fraud allegations at the federal level, it is important to have an experienced defense team.
How Our Securities Fraud Attorneys Can Help
At Spodek Law Group, we have extensive experience defending clients in high-stakes securities fraud cases. Our legal team includes career defense attorneys as well as former federal prosecutors and former federal investigative agents, many of whom handled securities fraud cases while working for the federal government. When you hire us to defend you, we will work quickly to fully resolve the allegations against you without charges being filed if possible. If charges have already been filed, we will focus our efforts on achieving a favorable pre-trial result while also preparing to present a comprehensive defense at trial.
Our securities fraud defense practice includes representing clients in the following areas:
1. Securities Fraud Defense During FBI and DOJ Investigations
We represent clients during securities fraud investigations conducted by the FBI, DOJ, and other federal authorities. Our attorneys can intervene in your investigation immediately, communicating with agents and prosecutors on your behalf while also gathering the information we need to build a strategic and effective defense.
2. Securities Fraud Defense During Grand Jury Proceedings
We also represent clients during grand jury proceedings. If federal authorities are seeking a grand jury indictment against you, we can use our experience to guide your next steps. We can also identify mistakes that violate your constitutional rights and use these mistakes to your advantage when possible.
3. Securities Fraud Defense in Federal Court
Our attorneys represent clients in federal court during all stages of the pre-trial and trial process. Even if federal authorities are seeking a grand jury indictment, it may still be possible to secure a favorable result that avoids a trial. But, we will also focus on preparing for trial while pursuing an out-of-court resolution, and we can use our experience to present a compelling defense to the jury if necessary.
Schedule an Appointment with a Securities Fraud Attorney at Spodek Law Group
If you need a securities fraud attorney, we strongly encourage you to contact us immediately. To speak with a senior securities fraud defense attorney at Spodek Law Group in confidence as soon as possible, call 212-300-5196 or request an appointment online now.
