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Defeating Claims of Philadelphia Securities Fraud and Insider Trading
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Fighting Back Against Allegations of Shady Stock Deals in Philly
Getting accused of securities fraud or insider trading can feel like your world is crashing down. Even if you’re innocent, the legal fees and damage to your reputation can be immense. But all hope isn’t lost – there are ways to fight back against allegations of illegal stock shenanigans in Philadelphia.
Insider Trading Accusations
One of the most common securities charges in Philly targets insider trading. That’s when someone uses non-public, confidential information to make strategic stock trades and earn profits or avoid losses.
But there are decent defenses here. First, you can argue you didn’t actually possess material, non-public data when you made the trades. Maybe the info wasn’t clear enough to influence investment decisions. Or perhaps it was public knowledge through news reports and SEC filings. Lack of concrete proof against you can defeat insider trading allegations.
You can also assert you didn’t realize the data was not public. If you show how an outsider could reasonably assume the info was out there for all to see, charges likely won’t stick.
Additionally, you can debate whether or not you actually used confidential data to trade stocks. Correlation doesn’t necessarily mean causation. Point to other logical reasons for your buy/sell choices beyond secret tips.
Fraud and Misrepresentation
Another typical claim targets general securities fraud. This includes deliberately lying or omitting facts to trick investors into shady stock deals. Common allegations include inflating earnings reports, hiding risks, and more.
But it’s not always easy to prove intent and materiality here. You can combat fraud charges by showing the alleged lies or omissions were honest mistakes, not purposeful tricks. Maybe you reasonably relied on bad data from other firms or subordinates. Perhaps the info wasn’t important enough to actually sway investment decisions. Poke holes in the notion you actively wanted to harm investors.
You can also question the merits and timing of the trades themselves, rather than just the context surrounding them. Argue you had legitimate, logical reasons for buying and selling when you did that weren’t tied to any phony info.
Illegal Short Selling
Short selling involves borrowing shares and quickly selling them off, hoping to repurchase them later at lower prices and pocket the difference. This is perfectly legal with the right disclosures and timing. But shorts can sometimes break the rules too.
If accused of improper shorting, first assess if the trades were properly marked in compliance with Regulations SHO and SSR. If so, it undercuts claims you tried hiding anything.
You can also argue timing and logistics were reasonable. Perhaps news or SEC filings changed things days later, supporting when you closed positions. Explain external factors for opening and closing shorts beyond shady intent.
Show how your trading volumes fit within normal ranges as well. Highlight other investors’ behaviors to debunk notions you uniquely manipulated markets.
Document everything thoroughly as well. Keep detailed records of positions, marks, timing, volumes, disclosures, and procedures. Meticulous paperwork makes charges of intentional wrongdoing less credible.
Getting experienced legal help ASAP is critical when battling any accusations of securities violations. But with the right evidence and narratives, even complex cases in Philly can be defeated. Don’t assume you’re doomed from the start.
I tried to cover some common allegations traders and brokers face in the city and ways innocent folks might fight back. Let me know if you need any clarification or have additional questions! Reaching favorable outcomes is very possible with preparation and perseverance.