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What is Criminal Securities Fraud and How Can a Lawyer Help?

March 21, 2024 Uncategorized

 

What is Criminal Securities Fraud and How Can a Lawyer Help?

Securities fraud is a big deal. It involves lying to investors to get their money. That’s illegal for a good reason – it hurts a lot of people. Let’s break it down so you understand what it is, and how a lawyer can help if you’re accused of it.

Securities are investments like stocks, bonds, and other financial products. Companies sell securities to raise money from investors. But there are strict laws about how companies can promote and sell securities. It protects investors.

The main law is the Securities Exchange Act of 1934. It created the Securities and Exchange Commission (SEC) to enforce securities laws. The SEC’s job is protecting investors from fraud. Securities fraud is when companies or people lie or mislead investors about securities to get their money. That’s illegal.

Some examples of securities fraud:

  • Lying about a company’s profits or assets to make the stock price go up
  • Not telling investors important negative info about the company
  • Insider trading – company execs using secret info to trade stocks
  • Pump and dump schemes to manipulate stock prices

Securities fraud hurts investors who lose money. It also damages public trust in financial markets. So the government takes it very seriously. There can be huge fines and years in prison for securities fraud.

Criminal vs Civil Securities Fraud

There are civil and criminal laws against securities fraud. In civil cases, the SEC sues companies and people for violations. Fines and bans from the industry are common penalties. Criminal charges mean possible prison time. Prosecutors must prove intent to defraud investors beyond a reasonable doubt.

Christine Twomey
Christine Twomey
2024-03-21
Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.
Brendan huisman
Brendan huisman
2024-03-18
Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!
Guerline Menard
Guerline Menard
2024-03-18
Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️
Keisha Parris
Keisha Parris
2024-03-15
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
Taïko Beauty
Taïko Beauty
2024-03-15
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!
Anthony Williams
Anthony Williams
2024-03-12
Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.
Loveth Okpedo
Loveth Okpedo
2024-03-12
Very professional, very transparent, over all a great experience
Bee L
Bee L
2024-02-28
Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.
divesh patel
divesh patel
2024-02-24
I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Examples of criminal charges:

  • Wire fraud
  • Mail fraud
  • Conspiracy
  • False statements

Prosecutors often charge multiple crimes for one case. Penalties can add up to decades in prison. Insider trading cases are a big focus for criminal charges.

How Lawyers Defend Securities Fraud Cases

Fighting securities fraud charges takes experience. The laws are complex. The SEC and prosecutors hit hard. A lawyer can protect your rights and defend you.

Good securities fraud lawyers know the system. They can get charges reduced or dismissed. Smart defense strategies include:

  • Attacking flaws in the prosecution’s case
  • Showing you acted in good faith, not fraud
  • Arguing the law doesn’t actually apply
  • Negotiating plea deals with less prison time

Securities cases often use lots of documents, emails, phone records and financial statements as evidence. Lawyers dig into the details to find inconsistencies and reasonable doubts. It’s complex work.

Let’s discuss some typical defenses lawyers use:

You Didn’t Knowingly Commit Fraud

Prosecutors must prove you intended to defraud investors. If you acted in good faith or made an honest mistake, that helps fight charges. Your lawyer will gather evidence showing your intent wasn’t fraudulent.

The Law Doesn’t Apply

Securities laws have exceptions and technicalities. Smart lawyers exploit them. For example, maybe your financial products weren’t technically “securities.” Or you had authority to trade stocks when you did. Knowledge of securities regulations helps find defenses.

Free Speech Defenses

The First Amendment protects free speech. Your lawyer can argue that your statements were opinions, not fraud. Or that you had a right to share business info investors wanted. Free speech defenses are common in securities cases.

Cooperation and Plea Deals

If evidence of fraud looks very strong, admitting wrongdoing and cooperating with prosecutors may help. Government wants insider info on fraud schemes. Giving substantial assistance can lead to reduced charges or lighter sentences in plea deals. But it requires coming clean. Lawyers negotiate the best deals possible.

Responding to a Securities Fraud Investigation

Learning you’re under investigation for securities fraud is scary. Stay calm, get a lawyer fast, and don’t talk to investigators without them. Here are smart steps if you’re under investigation:

  • Get experienced counsel immediately. Ask people you trust for referrals.
  • Say nothing to authorities without your lawyer present. Even if you’re innocent.
  • Follow your lawyer’s advice about responding to subpoenas for documents or testimony.
  • Hire a forensic accountant if needed to analyze financial records.
  • Ask about your rights and possible defenses. Explore options.
  • Stay positive and focus on your defense strategy. Don’t panic.

A securities fraud investigation doesn’t mean you’ll be charged. But smart legal help improves the outcome. An experienced lawyer protects your rights while navigating the complex securities laws. They know how to build the strongest defense.

Finding the Right Lawyer for You

Facing securities fraud charges or investigations is frightening. But with an experienced lawyer’s help, you can get through it. Make sure you hire someone with specific experience in securities cases. Ask candidates about their track record and typical strategies. Meet with a few lawyers before deciding.

Cost is a factor too. Securities cases can involve millions of documents and many billable hours for lawyers. Make sure you understand fee structures and how costs might add up. Get fee estimates in writing.

Most of all, find a lawyer you trust and can work with closely. You need someone sharp but also caring. Don’t be afraid to ask lots of questions upfront before hiring them. This is a big decision.

Securities fraud charges shouldn’t be faced alone. An experienced lawyer can defend your rights and freedom. With smart legal strategies, positive outcomes are possible. Don’t wait to seek help if you’re being investigated or charged. A good lawyer can make all the difference.

 

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Todd Spodek

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RALPH P. FRANCHO, JR

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JEREMY FEIGENBAUM

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ELIZABETH GARVEY

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CLAIRE BANKS

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RAJESH BARUA

Of-Counsel

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CHAD LEWIN

Of-Counsel

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