Miami Federal Insider Trading Lawyer

Miami Federal Insider Trading Attorney

Most people associate insider trading with huge Wall Street and corporate investors, but any person can be charged with insider trading. If you are facing allegations of insider trading, you need a Miami federal insider trading lawyer who can provide aggressive and experienced representation. A skilled Miami white collar crime lawyer can help navigate the complexities of federal charges and build a strong defense on your behalf.

What Is Insider Trading, And Who Can Be Charged?

The Securities and Exchange Commission (SEC) defines insider trading as unfairly trading stocks or other investments (securities) by using secret information that is not available to the public. It is illegal when you betray the public’s trust and use the information to make a profit or avoid a loss.

Insider trading charges can be brought against anyone, not just high-ranking corporate officials. They could be filed against:

• Government electives and employees
• Corporate employees, including management and leadership
• Acquaintances, friends, or family of those who have the confidential information
• Lawyers, accountants, consultants, and bankers who receive confidential information while working with a company

The Penalties for Insider Trading Charges

Insider trading allegations can come with legal, personal, and career repercussions. A conviction is a federal crime, and penalties include:

• Up to 20 years in prison
• Fines up to $5 million as an individual, but fines increase if corporations are involved
• May be ordered to pay restitution
• Disgorgement of any gains
• Injunctions to prohibit individuals from serving as officers or directors of public companies

On top of criminal penalties, personal and career consequences include:

• Damage to your reputation
• Difficulties finding employment
• Forfeiting professional licenses

In addition to insider trading charges, you could face prosecution for bank fraud, tax fraud, wire and mail fraud, money laundering, obstruction of justice, racketeering, and more.

The Securities and Exchange Commission (SEC) dedicates significant resources to investigating and prosecuting insider trading. Finding out that you are involved in an SEC investigation can be daunting, and every misstep can mean significant repercussions. A skilled attorney serves as your advocate, safeguarding your rights, and providing guidance throughout the investigative process so you can avoid actions that could jeopardize your defense.

Potential Defenses for Insider Trading Charges

Our Miami attorneys have extensive experience in insider trading cases and are prepared to investigate all potential defenses to secure the most positive outcome possible. Our approach includes analyzing the specifics of the alleged inside information, the circumstances surrounding the trading activity, and your understanding and intent.

Defense strategies that are often employed include:

Lack of Knowledge or Intent

One of the most solid defenses against securities fraud allegations is arguing that the defendant was unaware the information used was not publicly available or that the transaction didn’t utilize any insider knowledge.

Lack of or Insufficient Evidence

The prosecution bears the burden of proving that insider trading happened beyond a reasonable doubt. Skilled attorneys can find weaknesses in the prosecution’s evidence, such as the evidence is purely circumstantial, witness testimony is weak, or the investigation was conducted improperly.

No Access to Insider Information

If the defendant did not have access to the nonpublic information (NPI), then they cannot be found guilty of the crime. A defense attorney will provide evidence to show that the accused did not have access to the information, usually through witness testimony, emails, and phone records.

Misinterpreted Market Activity as Insider Trading

Market activity can easily be misinterpreted as insider trading. Fluctuations and trading patterns can often have innocent explanations, like established investment strategies or routine portfolio adjustments. An attorney can use these explanations to challenge accusations and poke holes in the prosecution’s case.

FAQs About Federal Insider Trading Law in Miami