The federal government, through the Securities and Exchange Commission, is the primary governmental authority responsible for prosecuting securities fraud. However, each state also has its own laws about securities fraud and its own state securities commission. While any securities fraud crime might be punishable under either state or federal law, they are often prosecuted as federal crimes.
There is a wide range of what can constitute securities fraud, and these charges can be very serious. Contact Philadelphia criminal defense lawyer Brian Zeiger for a free consultation about your securities fraud case.
Common Types of Securities Fraud
Generally, securities fraud occurs when someone makes a false statement about a company or the value of its stock, and others makes financial decisions based on the false information. Although the crime itself isn’t complicated, securities fraud can be particularly difficult to grasp if you lack an understanding of securities regulation.
- Securities Fraud by the Company: The first type of securities fraud occurs when an officer or director of a corporation doesn’t accurately report the company’s financial information to its shareholders. This can artificially raise the worth of the company’s stock and encourage investors to buy shares of an unhealthy company. If the company subsequently goes bankrupt, the people who bought shares based on false information lose their investment completely. One famous example of this type of securities fraud was the Enron scandal.
- Insider Trading: Insider trading is another type of securities fraud. It occurs when someone with confidential information about a company’s financial state uses that information to make decisions about whether to buy or sell the stock before that information is disclosed to the public.
- Commodities Futures Fraud:The Commodity Futures Trading Commission (CFTC) is the federal government agency that regulates the commodity futures, commodity options, and swaps trading markets. Much of the fraud involves foreign currency trading, precious metals, and commodity pools.
Federal and state governments do their best to combat securities fraud, but it’s still a good idea to take steps to protect yourself and your assets. With all the information about financial markets, and the huge number of players in the stock market, it’s often hard to separate truth from fiction.
Contact Brian Zeiger
When you need a Philadelphia, Pennsylvania attorney to defend you when arrested and charged with a with a white-collar crime, contact Brian Zeiger. It is critical to have an experienced attorney advocating on your behalf. Brian Zeiger is an experienced criminal defense attorney who will vigorously defend your rights.
An experienced criminal defense attorney can help you determine whether you have any grounds for dismissal of the charges, explore plea options, or represent you at trial. Only someone familiar with the criminal court system and cases like yours will know how good your chances are for a favorable outcome. A knowledgeable attorney will take all of this into consideration, assist you in making decisions about your case, and protect your rights.
Contact The Zeiger Firm today at (215) 546-0340 for a consultation, and let us help you.