Insider trading is no joke. When individuals or entities utilize material
information not available to the public in order to gain an advantage
in the buying or selling or stocks, options, or commodities, the Securities
and Exchange Commission (SEC) can take serious action. That action can
include hefty fines and sanctions.
But what the SEC can’t do is bring criminal charges; not at least
by themselves they can.
Why? – Because the SEC is an administrative regulatory agency; not
a criminal investigative agency. In so many words, it has no teeth and
its bark is worse than its bite.
At least until the FBI enters the picture.
The FBI is the half-sister to the SEC in securities fraud and insider trading
investigations. The two agencies commonly team up when the SEC detects
fraudulent securities practices that involve criminal conduct.
Once the FBI becomes involved, the stakes are raised well past the realm
of civil fines and penalties as it is common for federal felony charges
to be filed.
Those charges often include:
Mail Fraud - Any time a document or letter is sent via US Mail (or private carrier
such as UPS or FedEx) that contains a false statement to facilitate or
perpetuate securities fraud, it may constitute mail fraud.
Wire Fraud - Anytime and email or fax is sent via telephone line or the internet
that contains a false statement to facilitate or perpetuate securities
fraud, it may constitute mail fraud.
Money Laundering - When the financial proceeds of a criminal offense is transferred, concealed,
or transmitted into one or more financial institutions (among other destinations),
money laundering is a favorite charge of both the FBI and federal prosecutors.
There is nothing wrong with investing and there is nothing wrong with making
a lot of money doing it. The SEC, however, has sophisticated monitoring
techniques that can detect irregular trading patterns that are indicative
of the use unfair practices or methods. When this type of irregularity
or anomaly is detected, it commonly triggers an inquiry by the SEC.
If you are being investigated for securities fraud or
insider trading, now is the time to hire a Phoenix criminal defense lawyer.
If you get a knock on your door from SEC agents, it’s no joke. You
don’t have to talk to them and you probably shouldn’t until
you speak to a federal criminal defense attorney who has experience in
handling this type of matter.
Jason Lamm is one of the only criminal defense attorneys in Phoenix who
has substantial experience in defending federa lwhite collar crimes, but specifically securities fraud and insider trading cases. Cases like
these are complex and detail specific. With the careful attention that
you can only get from a boutique criminal defense firm, Jason Lamm has
spared many clients not just from lengthy federal prison sentences, but
also felony convictions that could have ended their careers and their
abilities to provide for their families.
If you get that knock at your door, or if you have been charged with a
federal white collar crime, call (602) 663-9100 to set up a private and
confidential consultation to discuss your case and review the options
that are available to give you the most effective defense possible.