Fort Lauderdale Insider Trading Lawyers: Your Best Defense Against Serious Charges
What Constitutes Illegal Insider Trading?
The legal definition of insider trading is when someone trades a public company’s stock based on material, non-public information in violation of a fiduciary duty or other relationship of trust and confidence. This includes company insiders like executives, as well as outsiders who obtain confidential data about upcoming events that could impact a stock price.
Some examples of illegal insider trading would be:
- A CEO or other senior executive trading their company’s stock based on confidential earnings data before it is publicly released.
- An attorney or accountant trading stock based on private information about an upcoming merger or acquisition.
- A spouse trading stock based on non-public details they overheard about their partner’s company.
- A hacker stealing confidential data and trading on it.
- An industry analyst obtaining private corporate information from sources and profiting from it through stock trades.
The key in determining if insider trading has occurred is whether the material non-public information was obtained in breach of a duty and provided an unfair advantage in trading the securities.
Steep Penalties for Insider Trading Violations
The consequences for insider trading can be severe. At the federal level, the Security Exchange Commission (SEC) pursues civil penalties such as:
- Disgorgement of all profits gained or losses avoided from illegal trading
- Civil fines up to three times the profit made or loss avoided
- Permanent ban from working in the securities industry
On the criminal side, the Department of Justice (DOJ) can file charges for insider trading violations carrying the following penalties:
- Up to 20 years in prison
- Fines up to $5 million
- Probation and home confinement
- Forfeiture of all profits from illegal trades
Defendants in insider trading cases also often face private civil lawsuits seeking sizable monetary damages. The government takes these violations very seriously, so building an airtight defense is critical.
How an Experienced Lawyer Can Defend You
Facing an insider trading investigation or charges can be overwhelming. But an experienced federal defense lawyer thoroughly understands complex securities regulations and how to build the strongest defense. A knowledgeable lawyer will immediately get to work on:
- Analyzing the Strengths and Weaknesses of the Government’s Case – Your lawyer will conduct an in-depth review of all evidence and witness statements to pinpoint any holes, inconsistencies or other vulnerabilities in the prosecution’s case. This allows them to focus the defense strategy on those weaknesses.
- Challenging How the Government Obtained Evidence – If there were any irregularities or protocols not followed in how evidence was gathered, your lawyer can file motions to have that evidence suppressed or excluded from trial. This could seriously undermine the prosecution’s ability to prove their case.
- Investigating the Source of the Information – A top defense lawyer will conduct their own investigation into how you obtained the information and whether it was truly material and non-public. If the data could be obtained through proper research or other lawful means, it weakens the government’s charges.
- Developing Alternate Explanations for the Trading Activity – Your lawyer may be able to show the trades in question were based on research, analysis or other lawful factors besides any insider information. This can create reasonable doubt as to your guilt.
- Negotiating with Prosecutors for Lesser Charges or Penalties – An experienced federal defense lawyer has a strong understanding of the sentencing guidelines, and can negotiate aggressively with prosecutors to reduce charges or penalties. This can limit the damage even if a plea deal becomes necessary.
- Taking the Case to Trial – If plea negotiations fail and the case goes to trial, a knowledgeable insider trading lawyer has the courtroom skills to attack the prosecution’s case, present exculpatory evidence, and sow reasonable doubt in the minds of jurors.
Having an elite white collar defense lawyer in your corner can mean the difference between a lengthy prison term and preserving your freedom. Do not delay in contacting a top Fort Lauderdale insider trading attorney for a free case review and consultation.