Minnesota Criminal Defense Attorneys

The Securities Exchange Commission is the primary federal agency responsible for investigating and prosecuting civil securities law violations. They often work in parallel with federal Department of Justice prosecutors who may assist behind the scenes until the case is over. Securities fraud accusations can cover a wide range of activity, including:

Deliberate misrepresentations

A key part of securities fraud is the accusation that someone was tricked or misled. This can be by a false or misleading statement, or, when a fiduciary relationship is involved (like an attorney, a board member, and some investment advisors) by an omission. That is, it can be a misrepresentation for a person to fail to disclose material facts they know to be true.

Churning

Churning, also known as overtrading, is one common way people are prosecuted for securities fraud. Churning is defined as making excessive trades to generate personal commissions rather than acting in investors' best interest.

Market manipulation

A person manipulates the market when they attempt to go around the free market and artificially inflate or deflate the price of a security. Sometimes this is done with a "pump and dump" scheme where a person inflates the value of a stock they hold before then selling that stock off.

Unauthorized trading

Unauthorized trades are transactions that a broker makes for a customer without the customer's permission or authorization.

Forgery

Creating a fake document, or altering a document (such as by adding a fake signature) to mislead an investor or other person.

Insider trading

Trading the stock of a public company (or another security) using information about the company not available to the public. A classic example of insider trading is where an executive knows their company's earnings report will be bad and dumps stock before that report goes out to the public.

Failure to execute trades

When an investor directs a broker or firm to execute a trade on their behalf and the broker fails to do so or misleads the investor about how this is done. This can include the broker failing to obtain a fair price during a trade or failing to make the trade in a timely manner.

Theft by conversion

If a broker takes an investors' funds and uses them for their own purposes, this can be a simple form of theft called conversion.

Breach of contract

The most common basis for civil lawsuits involving securities. At the simplest level, a contract is a promise to do something that can be written down or not. If a person breaks this promise, the other party can bring a lawsuit seeking money or other relief.

Breach of fiduciary duty

Investment advisers/brokerage firms might breach fiduciary duty in a number of ways. Examples include churning/overtrading, misrepresentation, and unauthorized trading. This can be an independent basis for charges or other sanctions.

Reputable Federal Criminal Attorney

Federal agencies investigate securities fraud including these types and many others: high-yield investment fraud, Ponzi schemes, pyramid schemes, advanced fee schemes, broker embezzlement, hedge fund-related fraud, foreign currency fraud and late-day trading to name a few. If you have come under investigation for securities fraud or other white-collar crimes by the FBI or SEC, or allegations have surfaced that you or your business has violated the Securities Exchange Act or related SEC regulations, it is crucial that you contact an experienced criminal defense attorney immediately.

Early legal representation in these kinds of securities fraud cases is critical. Not only are there potentially severe criminal penalties, but often there are also harsh civil consequences as well. Convictions for securities fraud can often result in hefty fines and lengthy prison sentences. In addition, a judge has the power to order that business people who have been found guilty of violating federal securities laws can be forbidden from holding positions of power in the future, including that they can no longer serve as a director or officer of a public company.

Hire a Law Firm Experienced in Securities Fraud

Our team of securities fraud lawyers at Birrell Criminal Defense can evaluate any allegations against you and provide advice about the facts and laws surrounding complicated securities transactions that have been alleged to be violations of the law. We have experience in defending against investigations and enforcement actions by regulatory agencies.

These kinds of charges for fraud can impact not only your liberty, but also your professional well-being. You need to contact a skilled criminal defense attorney immediately if you have come under suspicion or investigation. Punishments for securities fraud under federal law can include staggering fines and terms of imprisonment.

Our Securities Fraud Lawyers

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Ian Birrell