Don’t Let An Insider Training Accusation Ruin Your Reputation
Insider trading has made headlines numerous times and has been the subject of documentaries as well as major motion pictures and television shows, but it is still often misunderstood. It can be difficult for any person, even a broker or other securities professional, to clearly define the fine line between the legal and illegal exchange of stock market information.
If you are under investigation for or have been accused of insider trading, you need to move fast and secure the representation of a firm with a reputation for success in this complex field. You need a team that knows how to deal with the U.S. Attorney’s Office and Securities and Exchange Commission (SEC) in order to preserve your rights and interests.
Beckham Solis, Attorneys at Law, delivers seasoned federal defense counsel in the face of insider trading investigations and charges. Our team of Miami insider trading attorneys has over 35-plus years of combined legal experience and includes a former prosecutor and former public defender. We are known for our aggressive yet strategic advocacy both in and out of the federal courtroom. We take on insider trading cases for clients across Miami-Dade County.
What Is Insider Trading? Who May Face These Charges?
The SEC defines insider trading as “buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, nonpublic information about the security.” Virtually any person could face insider trading charges, not just corporate officers or directors who may be privy to confidential information.
Insider trading charges have been filed against:
- Government employees for trading based on confidential information they learned as a result of their employment, clearance or job duties.
- Corporate officers and directors for trading securities relating to their corporations, based on confidential or insider information they have learned.
- Employees of corporations who trade based on confidential information they have regarding their employers, such as mergers, layoffs, acquisitions or other significant matters.
- Employees of law firms, brokerage firms, printing companies or banks who trade based on information they’ve learned as a result of the services they provide to these corporations.
- Friends, family members or others who misappropriated and utilized confidential information from employers, friends, romantic partners, etc. to trade securities.
- Friends, associates, family members or other parties who trade based on tips or information provided by insiders such as corporate officers, employees, etc.
Insider Trading Penalties
The person accused of providing or utilizing confidential information could face federal charges for insider trading. The SEC takes such charges extremely seriously, in its mission to maintain the fairness and integrity of the securities markets. They will spare no effort in investigating potential insider trading or other violations, and federal prosecutors will pursue the highest penalties to punish offenders and discourage others from committing similar offenses.
The penalties for an insider trading conviction may include a prison sentence of up to 20 years and a fine of up to $5 million for an individual or $25 million for a business entity or organization. The SEC is also moving to prohibit securities violators from acting as executives at any publicly traded companies. In the face of such penalties, you cannot rely on anything but the highest quality defense counsel.
Contact Our Law Firm Today
Our Miami insider trading lawyers at Beckham Solis, Attorneys at Law, can offer immediate, experienced guidance related to any warrant, investigation, informal allegation, or charge related to buying or selling securities based on “insider” information. The line between legal and illegal trading practices can be blurred by conflicts between federal statutes and precedents set by case law. Put our understanding of these matters to work for you by contacting our offices for a complimentary consultation.