Federal Securities Fraud Can Involve Several Categories of Fraud

Federal Securities Fraud Can Involve Several Categories of Fraud

Have you been charged with or accuse of federal securities fraud? You should know that the government takes these charges very seriously and it is essential to hire an experienced federal defense attorney. Keep reading to learn the types of fraud that can be involved in a federal securities fraud case, the potential consequences for conviction, and how Chambers Law Firm can help. Then call us at 714-760-4088 for a consultation.

Insider trading

Insider trading occurs when a firm employee or someone linked with the company possesses non-public information and utilizes it to purchase or sell securities for a profit. It’s still insider trading if you have knowledge about your firm that you share with a buddy who isn’t involved with the company but utilizes the information to trade stocks.

“Pump and dump”

When a broker or investor deliberately disseminates false information about an asset in order to persuade others to purchase, artificially raising the price so they may sell it and profit, this is fraud. Getting others to buy is called “pumping,” and selling it afterwards is called “dumping.”

Churning

Churning occurs when a broker persuades a client to trade excessively in order to increase the broker’s fees and commissions. Churning is neglecting to behave in the best interests of the customer, which is something that brokers are legally obligated to do as fiduciaries.

Misrepresentation

Attempting to influence the value of a security by making false representations in order to profit from it later is misrepresentation. A broker, for example, may give a reporter an interview and willfully give incorrect information in order to profit from the expected effect on the stock. This is a type of fraud.

Accounting fraud

Accounting fraud occurs when an accountant falsifies a company’s accounts to misrepresent assets and liabilities, thereby affecting the value of securities. Securities fraud occurs when an accountant falsifies a company’s accounts to misrepresent assets and liabilities, thereby affecting the value of securities.

Boiler rooms

Brokers pressing investors or employing fraudulent sales practices to induce them to acquire “penny stocks” or low-value investments are referred to as “boiler rooms.”

What Are the Penalties for Securities and Commodities Fraud in the United States?

You might face 25 years in jail or a fine if convicted of a federal securities felony. The amount of the fine is determined by the circumstances of your case. Insider trading is punishable by up to $5 million penalties, whereas other kinds of securities fraud are punishable by a $10,000 fine.

If there was only one incidence of fraud or no financial damage, probation might be a viable option. The court may require you to pay restitution since securities fraud frequently results in a monetary loss for the victim.

Regardless of the specifics of the charge, if you are facing federal charges you should contact an experienced attorney. You have found an aggressive and experienced attorney in Chambers Law Firm. Call our offices at 714-760-4088 for a consultation.

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