Miami, FL Securities Fraud Lawyer

Attorney for Fraud Charges Involving Investments and Financial Instruments in Miami, Florida

Charges related to white collar crimes may involve a variety of financial activities. Cases where people are accused of securities fraud are some of the most complex and serious white collar criminal accusations. Defendants in these cases may need to address allegations of deception in connection with the purchase or sale of investments, including misrepresentations to investors, manipulation of stock prices, insider trading, and other fraudulent investment schemes. Due to the complexity of securities regulations and the technical nature of financial markets, people may face criminal charges for conduct they believed was lawful or for business practices that were legitimate.

The team at Stroleny Law: Criminal Defense Attorney understands the intricacies of securities law, the sophisticated techniques used by the Securities and Exchange Commission and other law enforcement agencies, and the defense strategies that may be used to challenge these serious accusations. Our lawyer works with financial analysts and other professionals to analyze the transactions involved in these cases and develop defense strategies that will help clients resolve these cases successfully.

Understanding Securities Fraud

Charges of securities fraud may involve a variety of deceptive practices that are related to the purchase or sale of stocks, bonds, mutual funds, and other investment instruments. A person who is accused of providing false information to investors, manipulating markets, or engaging in other deceptive conduct that affects securities transactions could face criminal charges at the federal or state level.

Misrepresentations in these cases may include false statements or omissions about facts that would influence an investor's decision to buy, sell, or hold securities. These misrepresentations may include lies about a company's financial condition, false projections of future earnings, concealment of risks, or misrepresentations about how investor funds will be used.

Market manipulation may involve artificial inflation or deflation of security prices through deceptive trading practices, false information, or other schemes. These practices can undermine the integrity of securities markets, and they can harm investors who rely on market prices to make investment decisions.

People may be charged with insider trading if they are accused of trading securities based on information that is not publicly available and has been obtained through a position in a company or relationships with corporate insiders. This practice can give certain traders unfair advantages while undermining market fairness.

Common Securities Fraud Schemes

Ponzi schemes are one of the most notorious forms of securities fraud. These operations may promise high returns to investors, but they may actually pay returns to early investors using money received from later investors rather than from legitimate profits. Ponzi schemes will inevitably collapse when the operator can no longer attract enough new investors to pay promised returns. Victims may lose most or all of their investments.

A person may be accused of engaging in schemes that target specific communities or groups where they have credibility. These may include religious communities, professional associations, and ethnic groups where a person had built up trust with other members of the community and was able to recruit investors.

Pyramid schemes involve the recruitment of participants who pay money to join and receive compensation primarily for recruiting additional participants rather than from selling products or services. These schemes may collapse when growth cannot be sustained. Multi-level marketing businesses may be accused of being pyramid schemes based on claims that they emphasize recruitment rather than product sales or that participants cannot realistically earn money through retail sales.

A person may be accused of engaging in "Pump and dump" schemes in which they took steps to inflate the price of stocks or other investments through misleading statements, then sold the inflated shares at a profit. A person may be accused of accumulating shares at low prices, spreading false information to drive prices higher, and selling their holdings before the truth emerges and prices collapse.

Advance fee fraud may involve promising lucrative investment opportunities in exchange for upfront fees or deposits. Victims may pay fees believing they will receive large returns, but the promised investments either do not exist or never materialize. A person may be accused of collecting fees from numerous people with no intention of providing a return on their investments.

Securities Fraud Penalties Under Federal and State Laws

Securities and commodities fraud is addressed in 18 U.S.C. § 1348. Under this statute, a person who is convicted of securities fraud could be sentenced to up to 25 years in prison. Fines for an individual who is convicted may be as high as $250,000, while an organization could be fined up to $500,000.

Florida addresses securities fraud through Florida Statutes § 517.301, which prohibits fraudulent practices in connection with securities transactions. It is unlawful to obtain money or property by means of false statements or omissions or to engage in transactions or practices that are fraudulent. Violations can result in third-degree felony charges with penalties of up to five years in prison and fines of up to $5,000. However, when a person is accused of obtaining a total of more than $50,000 from at least five alleged victims, they could be charged with a first-degree penalty. If convicted, they may be sentenced to up to 30 years in prison and fined up to $10,000.

Defense Strategies in Securities Fraud Cases

Our attorney can help determine what steps to take to defend against charges of securities fraud. He may challenge the claims that a person intended to defraud investors by presenting evidence that they believed their representations were accurate, that they relied on information from accountants or other professionals, or that they disclosed risks and information correctly.

It may be possible to demonstrate that statements a person made to investors did not concern facts that would influence reasonable investment decisions. Forward-looking statements, opinions, and projections accompanied by appropriate disclosures of risk may not be considered fraud, even if the predictions did not materialize.

Our lawyer may take steps to establish that investments were legitimate and that losses resulted from market conditions rather than fraud. Failed investments may simply involve business risks that did not work out favorably. Presenting evidence showing that a person operated a real business that pursued legitimate strategies may serve as a valid defense against claims of securities fraud.

Steps may be taken to prove that a person did not know about false statements made by others or did not have access to information showing that claims were false. In cases involving multiple participants, our attorney can demonstrate that our client was not aware of fraudulent conduct by others.

Contact Our Miami Securities Fraud Attorney

Cases involving allegations of securities fraud can be complex, and they will require assistance from an attorney who understands the applicable laws and the strategies that are most likely to be successful. Stroleny Law: Criminal Defense Attorney can provide the representation needed to prevail against securities fraud charges. Contact our Miami, FL securities fraud defense lawyer at 305-615-1285 to schedule a free consultation. We will review the allegations against you and explain how we can help protect your rights, your career, and your future.