A Securities Fraud Charges Defense Lawyer Can Help You
Securities are various types of investment products, such as stocks, bonds, mutual funds, and investment contracts. The sale of securities is regulated by the SEC or Securities and Exchange Commission, which is a federal agency designed to protect investors against fraudulent practices. This agency has the power to prosecute this type of fraud, but they’re not the only ones, since the states also have laws that regulate and monitor securities and exchanges. However, it is usually the federal government that prosecutes fraud and manipulation involving securities when something goes wrong. If you’ve been charged with securities fraud, a securities fraud charges defense lawyer in Houston can help you right now.
Types of Securities Fraud
There are many different types of securities fraud. However, one of the most common types of securities fraud is insider trading. Insider trading occurs when someone has secret knowledge of some event or circumstance that will lead to a change in the price of a company’s stock, and they use this knowledge to actively trade securities to gain a profit before anyone else gets the same information. While it is not illegal for the employee of a company to buy or sell that company’s stock and he reports it as required, it is illegal to buy, sell, or advise someone else about the sale of stock based upon a corporate secret.
Another type of securities fraud is called churning. This happens when a securities broker convinces a client to buy more securities than necessary in order to generate more commissions or fees that will go back to the broker. This action usually makes the broker more money, but doesn’t benefit the client. Misrepresentation is also a form of securities fraud. This occurs when a broker or someone similar makes deceptive statements or creates deceptive advertising, in order to influence buyers and to make a profit exclusively for the broker.
What Must Be Proven in Securities Fraud Charges
To prove that someone is guilty of securities fraud, the prosecutor must be able to show that the defendant either stated a false fact or failed to disclose a fact which caused a client to buy or sell a security, based upon this false information. It must also be shown that this falsifying of information was intentional, and that it was done with the deliberate intention of misleading the client and making a profit of some kind. If the mail or telephone or Internet were used in distributing the false information, the charges may include mail of wire fraud. In some cases of insider trading, fines have been known to go into the millions of dollars, which is money expected to be paid back once it is determined the person did commit this type of crime. That is why it is so important for the defendant to hire an experienced securities fraud charges defense lawyer to handle his or her case.
Penalties Associated With Securities Fraud Convictions
A conviction for securities fraud in Houston can involve harsh penalties. Securities fraud can be punished with civil penalties and criminal penalties too. Securities fraud can involve substantial fines. A long prison sentence of up to 25 years can be imposed in these types of cases. Restitution may also be mandated where the convicted party must repay the money lost as a result of their fraudulent activity.
Call to Schedule a Consultation With a Securities Fraud Defense Lawyer in Houston Today
If you’ve been charged with securities fraud, call to schedule a consultation with a securities fraud defense lawyer in Houston today. These are serious charges, and you will want an experienced lawyer on your side every step of the way. Securities fraud charges can result in a long prison sentence, can ruin your financial reputation, and could even mean the loss of a professional license. The experienced legal team at the Law Office of Mervyn M. Mosbacker, Jr. are dedicated to fighting for your rights and your freedom. We serve Houston and all the surrounding communities and we are eager to serve you. Call us at 713-526-2246 to schedule a free initial consultation and let us give you legal guidance you can trust.