Insider Trading

When someone works for a corporation and is obligated to keep non-public information secret but discloses that information to others, he or she may be arrested for insider trading. Those who potentially have access to private information regarding stock options, bonds, or other securities and who trade that information may face criminal charges. At The Justice Firm, our primary objective is to protect those who are under investigation or who have been arrested or charged from the loss of their freedom and harsh criminal penalties.

Under 17 CFR 240.10b-5, those who potentially come in contact with bonds, stocks, or other securities are prohibited from selling those securities without the owner giving explicit authority. Engaging in any fraudulent activity, omitting information, or making statements in regards to the sale or purchase of non-public information or securities is illegal in the state of California.

If accused of insider trading, an individual may face both civil and criminal repercussions. Depending on the facts of your case, charges may be filed against you by both the Securities and Exchange Commission (SEC), and the U.S. Attorney's Office. Because of the complexity of situations such as this, it is vital to have a capable and aggressive Los Angeles criminal defense lawyer on your side.

You may have no idea that your company or yourself is being investigated for insider trading until the point in time comes that you are visited or get a call from an SEC attorney. While it is likely you will be questioned specifically regarding trading activities and informed by the lawyer that you only have to answer on a voluntary basis, it is highly advised against answering questions posed by these lawyers over the phone. Suddenly learning that you are under investigation and that you may be facing charges can result in giving answers or making statements which could land you in legal hot water. To ensure the best possible outcome, request to have your attorney present when answering any questions, and politely decline the SEC attorney's request.

The criminal penalties for insider trading include substantial fines and potential jail/prison time. In recent years, the Justice Department has cracked down even harder on those accused; in addition, the SEC has continued efforts to have those previously convicted of insider trading barred from serving in executive positions at any company which is publicly traded.

Even individuals who assist someone else in an attempt to carry out insider trading may face harsh penalties. U.S. law dictates that an individual who indirectly or directly controls another person who commits insider trading shall face penalties which are determined by the court based on the circumstances and fact of the case; these penalties may not exceed either three times the amount of profit gained or loss avoided as a result of such controlled person's violation, or $1,000,000, whichever is greater.

It is important to realize how serious a criminal offense insider trading actually is. Not only may you face criminal penalties if convicted, your career may be in jeopardy, and even future employment opportunities. Do not hesitate before consulting with a highly skilled and capable Los Angeles insider trading lawyer who will work vigorously to protect your legal rights, reputation, and career.

As seasoned LA criminal defense attorneys, we realize that accusations of criminal behavior can ultimately ruin lives. We provide aggressive, effective defense for individuals accused of all types of crimes, including insider training. Contact us today at 866-695-6714, and let us put our experience and skill to work on your behalf.