Houston Federal Insider Trading Lawyer

Houston Federal Insider Trading Attorney

Insider trading occurs when someone who buys or sells securities, stocks, or bonds receives nonpublic information about a company’s operations that provides them with a leg up on the competition. Receiving this information and using it for financial gain is illegal and can result in civil penalties and possible criminal proceedings. If you are ever accused of insider trading, it is vital that you retain the services of a Houston federal insider trading lawyer who can help you.

Penalties of an Insider Trading Conviction

In the financial world, an accusation of insider trading can be enough to permanently affect your reputation among financial firms and other corporate leaders. You might be considered a liability even if the allegations prove unfounded. Some could view doing business with you as a risk and, therefore, may choose not to. It is vital to your career and reputation that you take the proper steps to protect yourself if you are accused of insider trading.

Federally, the Insider Trading Prohibition Act makes it illegal to deal with nonpublic information when trading securities. Engaging in such behaviors could result in significant penalties. If found guilty of insider trading, the Security and Exchange Commission (SEC) can fine you up to $1 million in civil penalties. A criminal conviction could land you a maximum penalty of 20 years in prison and a fine of $5 million or $25 million for corporate entities.

Possible Defenses Against Insider Trading

If you are charged with insider trading, retain the services of an insider trading lawyer who can help you identify a defense strategy that could help in your case. Fighting the charges could help you save your reputation and avoid a criminal conviction. Here are some potential defenses you can take against an insider trading charge:

• Lack of relevant knowledge. This defense argues you did not have access to any nonpublic material that could have influenced your decision to invest the way that you did. By not possessing this material in any way, you had no clear unfair advantage. If you did possess any relevant material, it was not nonpublic at all. If you can prove you never had any material, it could be enough to lessen or even drop the charges.
• Independent research. If the information you had was found out by you through independent research into the company in question, you could use that as your defense. Your trading decisions were influenced by your own research alone, without the need for nonpublic, illegally obtained information.
• Advanced trading. If any trading you did was planned well in advance and well before the nonpublic information at hand became relevant to the company’s stock price, you may be able to use that as a valid defense option. If you can prove that your investment occurred before the material information became relevant, it can be a viable defense against insider trading charges.
• Mosaic theory. This defense claims that you obtained all of the information that you had gradually and through completely legal means. You did not receive the full picture of the material information at once. You simply figured out the information through a steady diet of seemingly unconnected information. Mosaic theory argues that you obtained pieces of information and never had the full scope of the information.

These are just a few of the defense strategies that could be applied to your case. Our team will evaluate the circumstances of your case and determine a course of action that seeks to protect you from civil and criminal penalties that you are not liable for. Our knowledge and experience can help build a defense that works for you.

FAQs

Is There a Federal Law Against Insider Trading?

There is a federal law against insider trading known as the Insider Trading Prohibition Act, which is enforced by the Security and Exchange Commission. This makes it unlawful to trade in nonpublic stock information for financial gain, with the potential for severe penalties if you are caught doing so. Insider trading is considered illegal because it provides an unfair advantage to those who uncover the information through underhanded means.

What Federal Agency Investigates Insider Trading?

Accusations of insider trading are investigated by the Security and Exchange Commission, also known as the SEC. The SEC oversees stock exchanges and financial investments to ensure that the financial world is operating fairly and without nefarious intent. They investigate cases of insider trading, among other financially motivated crimes, to prevent anyone from violating federal law by trading securities through unlawful means.

Is Insider Trading a Civil or Criminal Case?

Insider trading accusations could be litigated in both civil and criminal courts. The circumstances of the infraction will determine where the case will be argued first. The SEC oversees the investigative process and could bring civil claims against individuals or entities that are found in violation of federal laws. Reviewing the circumstances of your case with your attorney can help you prepare for where your case may end up.

Do I Need a Lawyer for an Insider Trading Charge?

While you do not need to hire a lawyer to help fight your insider trading charges in Houston, your case would greatly benefit from the legal experience and knowledge gained from hiring one. These white-collar cases can be enormously complex, and it is recommended that you retain the services of an experienced lawyer who knows how these cases work. Having a lawyer who can help unravel the legal implications of your case can only help in the long run.

Contact Our Houston Federal Insider Trading Lawyer

Whether it is how you earn your livelihood or engage in financial investing for personal gain, keeping the market fair allows everyone the opportunity to profit without the fear of monopolization. Accusations of insider trading can hurt both professionally and personally. An experienced lawyer can help you figure out your next steps and help you develop a viable strategy to fight the charges.

At The Law Offices of Richard Kuniansky, we can help you build a strong defense strategy and provide you with the counsel you need to navigate the difficult road ahead. We know that every case is unique, and we spend time investigating the circumstances of your charges, reviewing police reports, interviewing witnesses, and much more to build a defense that is right for you. Contact us to schedule a consultation.