Avoiding Convictions for Philadelphia Investment and Hedge Fund Fraud

Avoiding Convictions for Philadelphia Investment and Hedge Fund Fraud

Investment fraud is a serious issue that can lead to criminal charges and convictions if not handled properly. However, with the right defense strategy, it may be possible to avoid a conviction or reduce the penalties. This article provides an overview of investment fraud laws, common charges, and potential defenses specific to Philadelphia and Pennsylvania.

Laws and Regulations

Investment fraud involves violating securities laws and regulations enforced by agencies like the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Some key laws include:

• Securities Act of 1933 – prohibits deceit, misrepresentations, and other fraud in the sale of securities. Violations can lead to civil and criminal charges[1].
• Securities Exchange Act of 1934 – created the SEC and gives it power to regulate securities markets and enforce laws against manipulation and fraud[2].
• Investment Advisers Act of 1940 – regulates investment advisers and prohibits various fraudulent activities[3].

In addition, Pennsylvania has its own securities laws such as the Pennsylvania Securities Act that mirror federal regulations[4]. The SEC and FINRA often work with state regulators to investigate and build cases.

Common Charges

Some typical criminal charges for investment fraud in Philadelphia include:

• Securities fraud – making false statements or omissions of material fact to induce investment. Can lead to up to 20 years imprisonment[5].
• Wire fraud – using electronic communications like email or phone to execute a fraudulent scheme. Up to 20 years imprisonment.
• Money laundering – attempts to conceal sources of illegally obtained money. Up to 20 years imprisonment.
• Tax evasion – not reporting or paying taxes on illegal investment profits. Up to 5 years imprisonment.
• Conspiracy – agreeing with others to commit investment fraud. Adds up to 5 years imprisonment to other charges.

Prosecutors may stack multiple charges with different maximum sentences. They will also seek forfeiture of any profits from illegal activities.

Building a Strong Defense

Here are some steps Philadelphia investment fraud defense lawyers take to build the strongest case:

• Review all evidence – SEC/FINRA documents, client and investor statements, emails, phone records, financial statements, etc.
• Probe for investigation errors – improper warrants, misconduct, violations of rights.
• Assess strength of prosecution’s case – is evidence circumstantial or direct, are witnesses credible, are technical regulations unclear?
• Determine optimal defense strategy – focus on lack of intent, technicalities, or cooperation?
• Negotiate with prosecutors – push for dropped or reduced charges.
• Develop sentencing mitigation – gather evidence of character, reputation, health issues, family circumstances.
• Prepare the client – ensure they understand the process, potential outcomes, and how to present themselves.

A meticulous, proactive legal strategy maximizes the chance of an optimal outcome. This requires an intimate understanding of both federal and Pennsylvania securities laws.

Takeaways

Investment fraud charges can carry severe penalties but an experienced defense can help avoid convictions or reduce consequences. Competent Philadelphia lawyers intimately understand securities regulations and defense strategies. They will thoroughly analyze the prosecution’s case to find weaknesses and technicalities to exploit. With the right legal defense, even airtight cases can sometimes end favorably.