NATIONALLY RECOGNIZED FEDERAL LAWYERS
Last Updated on: 1st September 2023, 12:36 am
Securities fraud is a white collar crime, and there are many forms of it. It turns on a person who misrepresents information that is available for investors to make a decision on whether to buy securities. That information can cause investors to lose significant sums of money. Those losses are not related to market volatility. They’re related to deception or the failure to disclose material facts. There are even cases when securities fraud is committed by individuals who aren’t registered with state and federal regulators. The following are just a few of the more common examples of securities fraud.
The Pump and Dump
This strategy is often seen with penny stocks. False or misleading information is circulated to prospective investors in an attempt to increase the value of a stock, so that the manipulators can sell the stock that they own at high prices. Honest investors will lose most or all of their money.
This is a form of investment fraud wherein new investors are attracted, and their money is used to pay older investors. The schemer promises a high rate of return with little or no risk, but in most instances, the schemer fails to invest the any money at all. When investment into the scheme halts, the fraudster runs off with the money that is left. Bernard Madoff may have run the biggest Ponzi scheme in history.
Precious Metal Scams
Fake precious metal investment programs operate by taking money from investors who believe that they’ll profit on increases in the prices of precious metals like gold or silver. The companies claim that they will store the metals for the customer, but in reality, they have no metals to deliver to investors. Of course, storage fees and commissions are charged too.
Beware of Social Media Promotions
Investment scammers have invaded social media like Facebook and Instagram with false and misleading claims. Given the vast reach of social platforms, investment solicitations go viral and attract increased numbers of investors.
Most securities fraud cases are charged federally. They are some of the most complicated cases that criminal defense attorneys can get involved in, and if an individual is pleads guilty or is found guilty, penalties can be harsh. A person who is convicted of making willfully false or misleading statements in connection with an investment scam can be sentenced to up to 20 years in prison and fined of up to $5 million. Defenses to securities fraud charges exist. We have represented financial institutions, investment advisors and investment executives that have been accused of securities fraud and related offenses.
The prosecution has the burden of proving you guilty beyond a reasonable doubt. We hold it to that burden. Many securities fraud cases pivot on the prosecution being able to prove the element of intent. That can be a difficult element to prove, especially if the government doesn’t have a statement or confession from you.
Exercise your right to remain silent and your right to counsel. If you are under investigation for securities fraud, you’re probably aware of it. Don’t give any type of a statement or confession to anybody. That might be what the prosecution needs to convict you on an otherwise weak case. The biggest mistake that you can make at this juncture is to fail to consult with an experienced and effective Philadelphia securities fraud defense attorney from our offices. If you’ve been charged accordingly, you’ll be needing us. In either case, the sooner that you contact us, the sooner we can start monitoring government activity and begin building a defense.
What You Should Know About SEC Subpoenas | Philadelphia SEC Subpoenas Lawyers
Receiving a subpoena from the Securities and Exchange Commission (SEC) is typically because they believe you can either provide information that’s relevant to an investigation on someone else or because you are being investigated. In many instances, the notice will provide sufficient details relevant to the circumstances. However, sometimes the details concerning the matter being investigated are not abundantly clear. It may be initially difficult to ascertain if you are the subject of the investigation and the severity of the matter.
An SEC investigation has the potential to result in civil and criminal charges. Subsequently, it’s important that you contact a Philadelphia SEC subpoena lawyer for guidance through the process as soon as you are served. Your initial response can be detrimental, especially given the extensive amount of documents that are often requested by the SEC. Responding to an SEC request should occur in consultation with an experienced Philadelphia SEC subpoena lawyer that can provide counsel regarding your rights in the matter.
Role of the SEC
The primary role of the SEC is to regulate the financial industry. It’s a federal agency that is responsible for overseeing securities brokers and dealers, investment advisors, securities exchanges, and mutual funds. They protect investors against fraud and ensure public companies provide disclosure for information that’s related to the market. The SEC also investigates issues of non-compliance, such as the possible violation of securities laws. The SEC can file civil charges and submit their findings to prosecutors for the purpose of filing criminal charges.
A subpoena is when a court orders a person to provide the information requested. A subpoena is typically issued when enough evidence and information has been gathered that a formal investigation is warranted. This can be in the form of a testimony or by producing the documents requested. There’s also a chance that other types of evidence will be requested in a subpoena.
Responding to an SEC Subpoena
Responding to an SEC subpoena is something that should not be taken lightly and should only be done in consultation with a Philadelphia SEC subpoena lawyer. There are many important considerations. For instance, concealing documents or being dishonest can have serious consequences. Similarly, ignoring a subpoena could cause you to be in contempt of court, which could result in fines or jail time. While it’s important that you respond to an SEC subpoena, you should not do so casually.
It’s important that you understand your rights regarding an SEC subpoena. You must also know the different options that are available to you, such as the right to object. There are different reasons why someone would object to a subpoena. However, the SEC can still enforce the subpoena after an objection is made. Challenging the response of the SEC will require the knowledge and expertise of a Philadelphia SEC subpoena lawyer. There are many possible exceptions that can be made for a variety of reasons, such as the information requested being incriminatory or privileged. A lawyer can walk you through this process.
In the event that you are asked to provide a testimony as opposed to providing documents, it’s imperative that you have a Philadelphia SEC subpoena lawyer present during the testimony. You need a lawyer available that can answer any questions that you have and provide counsel to ensure you communicate with clarity during your testimony. You must always remember that truthfulness is critical whenever you provide information in response to an SEC subpoena. A Philadelphia SEC subpoena lawyer can help to ensure you are prepared and able to provide informed responses.