Insider Trading Defense Attorneys
Insider trading is when a person uses privileged, insider information in order to benefit in a transaction. Anyone who then uses this information can end up facing a civil suit or even criminal charges. Even if you don’t end up behind bars, civil suits and other actions can potentially lead to heavy fines. If you’re in finance, your future employment opportunities could be affected by a charge of insider trading. Given all of this information, it’s important that anyone facing these charges should take the proper steps to defend themselves.
Most legal firms are not properly equipped to handle cases of insider trading fraud, but we are. The Norman Spencer Law Group has a proven track record when it comes to dealing with federal agencies that prosecute insider trading fraud. What that means for you is that instead of facing down charges, we’ll get right to work on getting everything reduced or even dropped, ideally before you’d ever have to step foot in a courtroom. So let’s go ahead and take a look at what insider trading fraud is as well as how to mount a successful defense.
What is Insider Trading Fraud?
Whenever an employee uses privileged information in order to trade, they’ve committed insider trading fraud. For instance, someone who has knowledge of their company’s upcoming merger can’t buy shares of the business that will result from the acquisition. While this crime is usually prosecuted against those on the inside, it can also be used to prosecute so-called “outsiders” who also have privileged information. Typically, this will involve insiders sharing privileged information with friends or family members, but this can also include times when someone comes across this information and acts on it.
As you might imagine, civil or criminal consequences can result from insider trading, and they often do. It’s important to note, though, that in order to be charged with this crime, the insider information and fraudulent use of that information both have to be proven. This charge will commonly involve stock shares, but it also relates to commodities and stock options as well.
Why is Insider Trading Illegal?
Insider trading has been illegal for several decades, but it’s only recently been prosecuted in an aggressive way. Among the many reasons for insider trading being illegal is the fact that it will put legitimate investors at a disadvantage. If investors see that insider trading has taken place, they’ll be less likely to put their money into the market. The cost of shares in stock will decrease as a result.
Another reason for this is that financial professionals spend a lot of resources on finding out information about companies that hasn’t yet been publicly disclosed. As a result of all of this, if an insider were to act on the information that they already have at their disposal, these financial professionals would be put at a great disadvantage.
What are the Penalties for Insider Trading?
The legal consequences of insider trading are especially harsh. They can include as much as 20 years in prison and a fine that could be as high as $5,000,000 for an individual or $25,000,000 for a company. As with all criminal charges, there are a variety of factors that determine how the charge is prosecuted. For instance, if the scheme used a sophisticated system of disguising where the transactions were occurring or otherwise used fake entities in the scam, then the penalties would be more severe.
Also, if the defendant is a stockbroker, a director in charge of a commodity pool, or a trading advisor in commodities, the penalties will tend to be more severe as well. Legal consequences are not the only thing that a defendant could face, though. There are often fines involved in these kinds of cases, in some cases as high as triple the amount that was stolen.
Who Can Help?
Considering the consequences that can result from insider trading, it’s important that you reach out to the right attorney in order to mount a successful legal defense. The problem here is that there are just so many legal firms out there, many of whom don’t have the experience, skills, and resources necessary to allow you to succeed. A legal firm can have a slick marketing strategy and a catchy jingle, but if they don’t have what it takes to back up their claims in the courtroom, then there’s no use in going with them.
You need to be sure that the legal firm you’re going with has years of experience, a proven track record of success at both the state and federal level, and the resources necessary to take on the federal agencies responsible for prosecuting these cases, a firm that will put in the time and effort necessary to find success for you. You need the Norman Spencer Law Group.
Norman Spencer Law Group is Highly Experienced
With a combined 70+ years of experience split among its defense attorneys, the Norman Spencer Law Group has what it takes to make sure that you get the results you need and deserve. We’ve represented people from all walks of life, and there truly is no case too big or small for us, too simple or complex. We’ve got a proven track record of success at both the state and federal levels.
We start with our focus on 1:1 service, and that means things like remote legal consultations hosted through Zoom, Skype, and Google Duo. That means flying a representative to meet you if you need that and are living in a different state. We put in the extra effort because you’re worth the extra effort. So if you’re facing legal trouble, get in touch with us today. We’ll get back to you as soon as we possibly can, and you can be sure that help is on the way.