Board-Certified Criminal Defense Representation In Central Florida

What counts as securities fraud?

by | Dec 22, 2017 | White Collar Crimes |

Securities fraud is a certain kind of white collar financial crime that includes a number of illegal activities. One of the most common types of securities fraud is insider trading, although it is not the only type of securities fraud. In very broad strokes, securities fraud involves a person using proprietary or private information to make financial deals possible, or who misrepresents financial information for personal or unethical gain.

In insider trading, a person may use private information that the public does not have access to in order to make unfairly profitable trades. This might happen within a company or outside of it. In some cases, an employee or owner of the company may know something about the inner workings of the business and choose to see stock before it loses value quickly. Even if the person with the private information is not an employee of the company whose stock is in question, it is still insider trading.

Securities fraud can also apply to a much broader range of crimes than just insider trading. Securities fraud might also include a person who attempts to secure investors by misrepresenting financial information about a business. This may even include a company publishing inaccurate information in their regard reports, leading employees and investors to believe that the company is in much better financial shape than it is.

If you recently received securities fraud charges, then you should consult with an experienced attorney as soon as possible. You may only have a very small window of time to build the strongest defense you can against these charges. Do not hesitate to reach out to an experienced attorney who can help you assess your circumstances and protect your rights.

Source: Findlaw, “White Collar Crime,” accessed Dec. 22, 2017