Securities Fraud / SEC Defense
Defense against SEC enforcement actions and federal securities fraud charges.
Understanding Securities Fraud / SEC Defense
Securities fraud encompasses a range of illegal activities in the financial markets, including insider trading, market manipulation, Ponzi schemes, accounting fraud, and misrepresentation of material information to investors. These cases are investigated and prosecuted by the Securities and Exchange Commission (SEC), the Department of Justice (DOJ), and the Financial Industry Regulatory Authority (FINRA). The consequences of a securities fraud conviction can be catastrophic, including decades in prison and financial penalties that can reach into the hundreds of millions of dollars.
Types of Securities Fraud
Securities fraud takes many forms. Insider trading involves buying or selling securities based on material non-public information. Market manipulation includes schemes to artificially inflate or deflate stock prices. Ponzi and investment schemes involve using new investor funds to pay returns to earlier investors. Accounting fraud involves manipulating financial statements to mislead investors. Each of these offenses can be prosecuted criminally by the DOJ or pursued civilly by the SEC, and in many cases both agencies take action simultaneously.
Parallel Criminal and Civil Proceedings
One of the most challenging aspects of securities fraud defense is the frequent overlap between criminal prosecution by the DOJ and civil enforcement by the SEC. Defendants may face simultaneous proceedings in which the SEC seeks injunctions, disgorgement, and civil penalties while federal prosecutors pursue criminal charges carrying imprisonment. Navigating these parallel proceedings requires careful coordination and strategic decision-making, particularly regarding the exercise of Fifth Amendment rights.
Our Defense Approach
Our firm defends clients at every stage of securities investigations and enforcement actions, from initial inquiries and Wells notices through trial and appeal. We retain industry experts, forensic accountants, and securities law specialists to analyze the government’s evidence and develop compelling defense narratives. Our experience includes defending insider trading cases, responding to SEC subpoenas and examinations, and representing clients in FINRA proceedings.
Securities fraud defense demands attorneys who understand both the criminal justice system and the complex regulatory framework governing the financial markets. Our team brings this dual expertise to every case we handle.
Potential Penalties
| Offense Level | Penalties |
|---|---|
| Securities Fraud (18 USC 1348) | Up to 25 years imprisonment, $5 million fine (individuals) |
| Insider Trading | Up to 20 years imprisonment, $5 million fine |
| SEC Civil Penalties | Disgorgement plus penalties up to 3x profits gained or losses avoided |
| Market Manipulation | Up to 20 years imprisonment, $5 million fine |
Defense Strategies We Use
The Federal Criminal Process
Understanding what happens next is critical. Here is a step-by-step overview of the federal criminal process — and where an experienced attorney can make the biggest impact.
Investigation
Federal agencies (FBI, DEA, IRS) build a case. You may not know you're under investigation. Early attorney involvement can make a critical difference.
Grand Jury
A federal grand jury reviews evidence and decides whether to issue an indictment. This happens in secret — you won't be present.
Indictment
Formal charges are filed. The indictment outlines each count and the statutory penalties you face.
Arraignment
Your first court appearance. You enter a plea (typically not guilty), and bail conditions are set.
Discovery
Both sides exchange evidence. Your defense team reviews thousands of pages of government documents, wiretaps, and financial records.
Pre-Trial Motions
Critical phase where your attorneys file motions to suppress evidence, dismiss charges, or compel disclosure.
Plea Negotiations
Most federal cases resolve through plea agreements. Your attorney negotiates for reduced charges or sentencing concessions.
Trial
If no plea is reached, the case goes before a jury. Federal trials are typically shorter but more intense than state trials.
Sentencing
The judge considers the Federal Sentencing Guidelines, your criminal history, and mitigating factors to determine your sentence.
Appeal
If convicted, you have the right to appeal to the Circuit Court. Appeals focus on legal errors, not factual disputes.
Frequently Asked Questions
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