Miami Federal Securities Fraud Attorney
Securities trading can mean huge financial gains, but if you become involved in the markets, you must follow federal regulations. Non-compliance can lead to serious legal repercussions, including securities fraud charges. If you are facing these accusations, you should consult with a Miami federal securities fraud lawyer.
A local Miami white collar crime lawyer can provide the legal guidance and defense strategies necessary to navigate complex federal securities fraud cases.
What Is Federal Securities Fraud?
Federal securities fraud, also called investment fraud, occurs when someone deceives investors into buying or selling securities based on false or inaccurate information. Securities include:
- Stocks
- Bonds
- Options
- Notes
- Or any transaction where a person is investing money and expects to turn a profit.
Securities fraud can come in many different forms, from Ponzi schemes, hedge fund fraud, misstatements on financial reports, insider trading, front running, security price manipulation, and theft or embezzlement.
Federal Agencies That Oversee Securities Fraud
Several agencies govern the securities industry, including:
The Securities & Exchange Commission (SEC)
The SEC oversees all stock exchanges and all organizations that sell securities. The agency also enforces laws, can file civil lawsuits, and will collaborate with the Department of Justice (DOJ) to pursue criminal charges if the case is serious enough.
The Financial Industry Regulatory Authority (FINRA)
FINRA is an independent organization that regulates the securities industry. It oversees brokers, broker-dealers, and funding portals. It also enforces rules to ensure fair markets. FINRA can limit membership bans or suspensions and impose fines, disgorgement, or restitution.
Department of Justice (DOJ)
The DOJ can investigate and prosecute criminal cases of securities fraud. The organization often works closely with the SEC in investigating these cases and can bring criminal charges, such as fines or imprisonment.
Federal Securities Fraud Law and Regulations
There are three main federal laws and regulations that govern securities fraud, including the Securities Act of 1933, the Securities Exchange Act of 1934, and the Sarbanes-Oxley Act of 2002.
The Securities Act of 1933 governs the initial sale of securities to the public and requires companies to register securities with the SEC. This provides investors with fair and full disclosure of information. The Securities Exchange Act of 1934 regulates the trade of securities on stock exchanges and over-the-counter markets. It prohibits security fraud from insider trading, market manipulation, and false or misleading statements.
The Sarbanes-Oxley Act was enacted to increase corporate accountability and strengthen penalties for securities fraud.
Florida Securities Fraud Law and Regulations
On top of federal laws and regulations, citizens of Florida are protected by the Florida Securities and Investor Protection Act (FSIPA). This Act defines securities fraud within the state and includes fines, sanctions, and criminal penalties for those convicted of securities fraud.
Violating this regulation under Chapter 517 is considered a third-degree felony. This can mean up to five years of imprisonment and fines. If the fraudulent transactions impacted more than five people, it could become a first-degree felony with up to 30 years of imprisonment and fines.
Defenses For Federal Securities Fraud Charges
If you are facing federal securities fraud charges, your lawyer can craft a tailored defense strategy for your case. Some of the more common defenses for securities fraud include:
Good Faith Belief
One defense is demonstrating that the defendant genuinely and sincerely believed the misleading statements or promises made during the fraudulent scheme to be accurate.
No Knowledge
The No Knowledge Defense can be utilized to prove the defendant was unaware of the existence of the SEC regulation. This defense is common because the Securities Exchange Act of 1934 states that “no person shall be subject to imprisonment for the violation of any securities rule or regulation if the person proves to have no knowledge of such securities rule or regulation.”
Lack of Evidence
A defense team could argue that the prosecution has failed to present sufficient evidence to prove that a crime was committed beyond a reasonable doubt.
Unlawful Search and Seizure
Law enforcement officers could overstep their authority by conducting unwarranted searches of vehicles, homes, or other property, or coercing individuals into consenting to these searches. A defense team could file a motion to suppress evidence that was unlawfully obtained, which could lead to a dismissal of charges.
FAQs About Miami,FL Federal Securities Fraud Law
A: The organizations that investigate securities fraud include the U.S. Department of Justice (DOJ), the Federal Bureau of Investigation (FBI), The Financial Industry Regulatory Authority (FINRA), and the Securities and Exchange Commission (SEC).
The DOJ has specific units that investigate securities fraud, including its Securities and Financial Fraud Unit (SFF) and the Commodity Futures Trading Commission. If any alleged crimes may have happened through the internet, the DOJ also has its Computer Crime and Intellectual Property Section.
A: The penalties a securities fraud conviction may come with include up to 25 years in prison, significant fines, restitution, and disgorgement, which is giving up any profits that were made. The penalties will depend on whether or not the defendant violated the Securities Act of 1933, the Securities Exchange Act of 1934, or the Sarbanes-Oxley Act.
A: Lawyers can help in securities fraud cases throughout the whole process. From the beginning, they can meticulously investigate what happened, gather essential evidence, review documents, and interview witnesses. They can utilize their knowledge to navigate the legal procedures, represent the defendant in court, and potentially negotiate settlements. Lawyers can also be invaluable assets for guidance and emotional support during a confusing and emotional time.
A: If you are being investigated for federal securities fraud, you should consult with a lawyer before speaking with any investigators, SEC included. This will protect you from self-incrimination and potentially providing misleading information that could become detrimental to a future court case. Your lawyer will advise you on what to say and who to talk to.
Reach Out to an Experienced Criminal Defense Attorney
At The Kirlew Law Firm, we understand the complexities and gravity of securities fraud charges. We recognize that every person’s case presents unique challenges, so we can leverage our extensive experience in criminal defense, white collar investigations, and litigation, to craft a tailored defense strategy. Contact us for a free consultation.
