Phoenix Insider Trading Attorney
What is Insider Trading?
Insider trading is defined as trading of a corporation’s stock or
other securities by individuals who possess confidential or non-public
information pertaining to the company. This can also occur in a bond purchase,
real estate transaction or any financial transaction. Illegal insider
trading allegations have criminal and civil repercussions, possibly facing
parallel cases filed by both the U.S. Attorney’s Office and the
Securities and Exchange Commission (SEC).
How are Insider Trading Cases Discovered?
While all of the stock exchanges in the U.S. have their own surveillance
programs and enforcement divisions in place, the SEC asserts nationwide
jurisdiction to investigate and enforce the federal securities laws. However,
they mainly rely on the self-regulatory organizations (SRO), who use sophisticated
computer systems to monitor trading in the nation’s securities markets.
These systems continuously survey volume and price movements of all publicly
traded stocks. An alert is produced when a price movement in a specific
stock exceeds predetermined parameters.
If an alert is generated, the SRO will conduct the following actions:
- Check if any unusual news announcements are made by the company
- Obtain trading records to establish who was trading in the company’s
stock before an announcement was made
- See if any of the company’s officers or directors traded in the company’s stock
- Determine if any individuals engaged in trading are associated with broker-dealers
A referral is then made to the SEC, who will begin a preliminary investigation
individuals suspected of illegal insider trading without informing them.
The SEC doesn’t possess subpoena authority in order to obtain documents
or testimony from individuals and publicly traded companies. Therefore,
they must rely on voluntary participation. An SEC appointed attorney will
contact the company whose securities are the subject of inquiry and determine
relationships of each individual within the company.
The first sign an individual is the subject of an insider trading investigation
is a phone call from the SEC attorney. While many people answer questions
on a voluntary basis, the preferable course of action is to decline cooperation
until you consult with an attorney.
Why You Need Our Criminal Defense Lawyer
If you or your company are under investigation for insider trading, it’s
imperative to retain legal counsel from an experienced
Phoenix criminal defense attorney. Our founder, Jason Lamm, has handled a multitude of federal cases in
Arizona and around the United States. He has previously practiced law
before the Supreme Court of the United States, the District Courts for
Arizona, Nebraska, the Southern District of Texas (Houston), the Central
District of Illinois, and Maryland. Due to a practice known as pro hac
vice and because of his good standing in other federal courts, he has
been provisionally admitted to represent clients in federal courts in
cities such as Los Angeles, San Francisco, and New York.
Get started on your case today by
calling our Phoenix criminal defense law firm and speak with our lawyer in a
confidential case evaluation!