A Proven Defender Of Those Charged With Securities Fraud

Securities fraud is the act of lying or sharing insider information about a company or its stock value to influence other people’s investment decisions. While this may seem straightforward, the actual practice of prosecuting or defending a person who is charged with securities fraud is complex. Those who are dealing with securities fraud charges need a criminal defense attorney like Ann Fitz who understands securities regulation and is familiar with the nuances of federal law.

The Law Office of Ann Fitz assists federal white collar criminal defense clients in the Southern District of Florida. Ann Fitz is a proven defense attorney who can handle the complexities of your securities fraud case. Call her now at 561-932-1690 to schedule your consultation at the firm’s West Palm Beach office.

What Counts As Securities Fraud?

Securities fraud charges cover a wide range of acts that a person can commit. Below are a few common examples of securities fraud.

Market Manipulation

One type of securities fraud occurs when an officer or director of a corporation does not accurately report the business’s financial information to its shareholders. This inaccurate report can artificially raise the value of the company’s stock and may urge investors to buy shares of an ailing company. If the company then goes bankrupt, the people who bought shares based on false information lose their entire investment.

“Pump And Dump” Schemes

Another type of securities fraud occurs when a third-party gives out false information about the stock market, a company or an industry. “Pump and dump” schemes are a prevalent type of third-party misrepresentation. In a “pump and dump” scheme, a person will find an unknown company with affordable stock and buy many shares. That person will then send out false information about the company to encourage others to buy the stock, which then drives up the price. Once the price of the stock is high enough, the person sells, or dumps, their shares for a profit, devaluing the stock.

Insider Trading

Insider trading is a type of securities fraud that involves the trading of a corporation’s securities (stocks, bonds or stock options) by corporate insiders such as officers, key employees, directors or holders of more than 10 percent of the firm’s shares. Insider trading is illegal when an insider buys or sells a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security.

Examples of insider trading include:

  • Corporate officers, directors and employees who trade the corporation’s securities after learning of significant, confidential corporate developments
  • Friends, business associates and family members of corporate insiders who trade securities after receiving information
  • Employees of law, banking and brokerage firms who have secret insider information about a corporation, who then trade securities after receiving confidential information
  • Government employees who learn insider information because of their job

Do Not Wait To Talk To A Lawyer

The criminal penalties for all forms of securities fraud are severe. If you are charged with insider trading, you need a criminal defense attorney who can protect your rights

You can call the Law Office of Ann Fitz at 561-932-1690 to schedule your consultation. You can also email the firm by using the contact form.