Challenging Allegations and Investigations
An accused person charged with insider trading could face both civil and criminal charges. Prosecutors and investigators file Insider trading charges when a person (the accused) makes a decision to buy or sell an investment, usually stocks or bonds, after receiving information from a person who works inside a company, or a person who is close to a company. If you are the only person who knows the information, and the public has no knowledge, it is considered insider trading.
Because of the nature of investing, the Securities and Exchange Commission (SEC) may file charges against the accused, resulting in the accused having to defend him or herself against two criminal cases, which makes it difficult for any attorney to defend.
This is why you must find a Ventura insider trading lawyer with the experience to fight not only the state case, but the SEC case as well – and simultaneously.
With more than 28 years of experience fighting insider-trading charges for my clients, I have the experience needed to fight the insider trading charges on your behalf on both the state and federal level. When you contact me for a confidential review of your insider trading case, I will work tirelessly to find answers and information you need, so that you can help me help you defend your rights and freedom.
Were you charged with insider trading? Did you know you were under investigation? Did you receive a phone call or a visit from an attorney representing the SEC?
This is why it is highly inadvisable to answer any questions without an attorney present on your behalf to help you answer the questions because it is all too easy to accidentally answer a question with an innocent statement that the attorney could misconstrue and use to help build a case against you. This is especially true of any answers you give under the guise that they were “voluntary” answers.
If you receive a call or a visit from an SEC attorney, always be polite, and say you would rather have your own attorney present to represent you. The SEC attorney must reschedule the interview, but may imply that not answering the questions could get you into more trouble. Do not be intimidated by any such implications because you are not under arrest, and these questions are indeed voluntary.
Insider Trading Penalties
The Justice Department and SEC began cracking down on insider trading, resulting in a string of arrests, convictions, and long term sentences. Most notably of the more than 20 arrests between 2009 and 2013 were those of Raj Rajaratnam hedge fund manager and head of Galleon Group, and Matthew Kluger. Arrested in 2009, Rajaratnam went to trial, was convicted and received an 11-year sentence. Kluger plead guilty with two other men, but he was still handed a 12-year sentence. Both men appealed their sentences, and the appeals court upheld the terms for both men.
The SEC has attempted to restrict those convicted of insider trading from being allowed to serve as CEOs or hold other management or executive positions of any publicly traded companies after serving sentences. If the SEC succeeds, this would be considered a penalty of insider trading if convicted or if pleading guilty in addition to the usual penalties, which typically include jail time and fines, depending on the severity of the actual charges, which can range from insider trading and fraud to conspiracy to commit fraud and more.
On the other hand, a person who is convicted of giving investment tips or giving information to ao person to facilitate the inside trade, or convicted of otherwise controlling the person who inside traded is subject to even harsher penalties than the person convicted of the actual trading. The penalties are so harsh that the U.S. code states the person convicted of helping insider trading can be fined an amount not to, “exceed the greater of $1,000,000, or three times the amount of the profit gained or loss avoided as a result of such controlled person’s violation.”
The reason behind the harsh sentences levied upon those convicted of insider trading and those convicted of helping or controlling inside traders is because the courts believe that coming down hard on all those involved will stop them from committing even more illegal acts of insider trading.
The problem with this reasoning is that not all forms of insider trading is illegal, which is why this type of indiscriminately harsh sentencing requires an attorney to fight on your behalf who is willing to indiscriminately fight on your behalf just as harshly as the prosecution is fighting to convict.
With my 28 plus years of experience, I have the experience necessary to evaluate:
- Your trading, your company’s trading, and what you and your company’s motivations are
- The intent behind the trades, and whether public or non-public information was involved
- Any SEC Formal Orders issued – before you are questioned
If your motivations were based on legal items, such as a news article, a stock record, or other information that was available to the public, I will aggressively pursue the evidence in court on your behalf.
Ultimately, if you know you are involved with an insider trading investigation in any way, you must act quickly and seek help from an experienced Ventura criminal defense attorney to ensure that you get a fair investigation and protect your freedom by ensuring a fair trial.
If you decide to cooperate with the government, you need to ensure that they do not take advantage of your good nature and your information and I can help you do that by fighting to protect your freedom using all of the resources at my disposal – and my 28 years of experience.
Contact The Law Office of Robert M. Helfend today so I can review your case in confidence, and then we can start on the road to protecting you, your assets, and your future.