Political Operative Jacob Wohl Charged with Unlawfully Selling Securities

Securities fraud can lead to serious criminal charges in California

Political Operative Jacob Wohl Charged with Unlawfully Selling Securities

Conservative political figure Jacob Wohl rose to prominence when he was just a teenager by founding investment funds and becoming a prominent supporter of President Donald Trump. He recently made news in California as Riverside prosecutors charged him with felony securities fraud.

Wohl is charged with violating the California Corporations Code by selling an unregistered security. Prosecutors allege that in 2016 — when Wohl was just 18 — he and his business partner sold an unregistered security to an undercover investigator. In the transaction, Wohl’s business partner promised that a $100,00 investment would yield a 17% rate of return through the purchase and flipping of residential real estate property. Because Wohl and his company did not file the appropriate paperwork and other documentation with the necessary government bodies, the investment that they were selling (known as a security) was unregistered.

Securities are a type of financial instrument that is proof of ownership or debt and has been assigned a value. Typically, a security can be sold or traded, such as a stock or a bond. If a financial asset is considered a security under California (or federal) law, then its sale and purchase will be governed by extensive and complex rules and regulations. A violation of these laws can lead to significant penalties — including criminal charges.

There are a number of actions that can lead to criminal penalties for securities fraud under California law. As a criminal attorney Riverside, CA can explain, even a simple failure to file the appropriate paperwork with the California Department of Corporations can lead to criminal charges. This is known as selling unregistered or unqualified securities, and it is the offense that Jacob Wohl is facing.

In California, securities fraud is a wobbler offense, which means that it can be prosecuted as either a misdemeanor or a felony depending on the facts of the case and the defendant’s criminal history. If an individual “willfully” sells or offers to sell securities in California without registering them, then you may face a fine of up to $1,000,000 and/or between 16 months and 3 years in county jail. For other types of willful securities fraud, such as market manipulation, making false or misleading statements in a securities transaction, or engaging in insider trading, the penalties include up to $10,000,000 in fines and/or between 2 and 5 years in county jail. You may also be charged with federal securities fraud — making it all the more important to have a highly skilled criminal attorney Riverside, CA to represent you.

Securities fraud cases can be complicated, requiring an in-depth analysis of financial documents and registration paperwork against state and federal law. At the Chambers Law Firm, our team of legal professionals is adept at working with experts to advocate for our clients. We believe in a collaborative approach to achieve the best possible outcome. Contact our firm today at 714-760-4088 or dchambers@clfca.com to schedule a free initial consultation.

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