Houston Securities Fraud Lawyer

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Houston Securities Fraud Attorney

Within the fast-paced world of finance, allegations of securities fraud can have serious implications for businesses and individuals. They can be life-altering. Financial standings and professional reputations can be ruined, and the defendant can suffer legal consequences. Securities fraud cases can be extremely complex. Anyone facing these accusations should contact a Houston securities fraud lawyer as soon as possible.

The Law Offices of Richard Kuniansky can give you the help you need with your case. I have over 45 years of legal experience with federal fraud cases and have worked on both sides of the courtroom. I have the knowledge and skills needed to effectively represent those accused of securities fraud.

I can anticipate the prosecution’s next move and create a strong defense plan. When you’re in need of a strategic fraud defense, contact me as soon as possible. Whether you’re accused of participating in a Ponzi scheme, insider trading, or accounting fraud, I can assist you.

Houston Securities Fraud Lawyer

Understanding Securities Fraud Laws in Houston, Texas

Securities fraud, also called investment fraud or stock fraud, is a white collar crime that encompasses a wide variety of practices that violate state and federal laws related to investments, stocks, and bonds. These are known as securities. The securities industry is regulated by the U.S. Securities and Exchange Commission (SEC), which keeps investors informed about investment scams and frauds. Securities laws are also enforced by the SEC.

Since the early 1930s, the federal government has been aggressively pursuing accusations of investment fraud. Not only did they establish the SEC with the Securities Exchange Act of 1934, but in the year before, they enacted the Securities Act of 1933. This act created a requirement for investors to receive all significant information relating to the public sale of securities and forbade any form of fraud in the process.

The state of Texas took legal precautions as well with the Texas Securities Act, which regulates securities transactions in the state. Under this act, there are registration requirements for any security that is sold or offered in Texas, as well as individuals and firms that sell securities or give investment advice. There are also provisions in place that prohibit securities fraud. The Texas State Securities Board can investigate accusations and take action against offenders.

Types of Securities Fraud and Penalties

There are many different types of securities fraud, including the following:

  • Ponzi Schemes: Ponzi schemes promise investors that there is no big risk in what they are doing, but there will be a big reward. They are investment scams that work by taking money from new investors to pay earlier investors, giving them the illusion that they are making a sizable profit.
  • Pyramid Schemes: A pyramid scheme is similar to a Ponzi scheme but works a bit differently. Each investor who is recruited in a pyramid scheme must also recruit other investors to make a profit. The recruits typically pay a fee or pay to sell a specific product. In the end, the first schemer at the top of the pyramid makes the biggest profit, while the investors at the bottom may not make anything.
  • Insider Trading: Insider trading refers to the buying or selling of security based on information that has not been made public. Insider trading also involves tipping another person off, as well as transactions made by the person who was given the tip. However, legal and illegal insider trading exists. For insider trading to be legal, company insiders have to file certain forms with the SEC after each transaction and within a specific timeframe.
  • Advance Fee Scam: Advance fee scams typically occur when an individual promises investors that they will give them money, services, goods, or stocks if they pay an upfront fee. In the end, the investors never see the scammer again, and they never receive any kind of return on their investment.
  • High-Yield Investment Fraud: This is also known as a high-yield investment program or prime bank fraud. This is a scheme where the scammer claims that there will be a large return on an investment, and there is little to no risk involved.
  • Accounting Fraud: Accounting fraud occurs when an individual falsifies financial statements to make it seem as though a company or organization is in good financial standing. This can be done by creating fake transactions or hiding real ones in order to hide losses or profits from the public, shareholders, and investors.

The Process of an SEC Investigation

When the SEC’s Enforcement Division begins an investigation, it can be due to a variety of reasons. They could have been tipped off anonymously or received an alert from a competitor, whistleblower, someone bringing a case against you, or Suspicious Activity Reports. Any of this could be an indication that there is a possibility of a securities law violation, leading the SEC to launch an informal investigation.

The SEC conducts their investigations privately. You will not know you are under investigation, but you will likely be sent an informal request to provide specific documents or give testimony, possibly both. An informal investigation often precedes a formal investigation, so it is important to take it seriously and respond to the SEC as soon as possible. They will interview witnesses who offer volunteer information and evidence and examine all relevant documents, like trading data.

It is essential that you contact a lawyer and begin developing your defense strategy as soon as you become aware of an SEC investigation. As your defense lawyer, I can take the proper steps to intervene in the investigation, assess the charges against you, and potentially challenge any of the SEC’s investigative tactics that go beyond the authority they have.

Once the SEC has gathered the necessary evidence, they will decide if they should move forward with a formal investigation, terminate the process, or settle with the target. Having a strong defense could make a difference in their decision. If they decide to continue with a formal investigation, however, you will have to prepare for that next stage. The procedures of a formal SEC investigation are different from that of an informal one.

The SEC can issue a subpoena requesting any documentation or data they feel is relevant to the case, and they don’t need approval from a judge to do so. In the event that they decide to bring charges against you, you may receive a Wells Notice informing you of the charges and what was found by the Enforcements Division in their investigation. They may also begin negotiating a settlement.

Together, you and I can decide how you would like to proceed based on the charges brought against you. You can choose to pay a settlement or fight the allegations through litigation. Based on all evidence of the investigation, the SEC will make a decision regarding whether they should pursue administrative or civil enforcement or pass the case to the U.S. Department of Justice for criminal prosecution.


Q. Who Can Sue for Securities Fraud?

A. Anyone can sue for securities fraud in Houston, Texas. If a person was negatively affected in any way by securities fraud, they may have the right to take legal action against the offender to recover what they lost. Often, if a large number of investors are victims of securities fraud, they may all come together for a class action suit.

Q. What Is a Securities Fraud Defense Lawyer?

A. A securities fraud defense lawyer serves as representation for those who have been accused of securities fraud or some other violation of securities laws and regulations. These legal professionals develop a strong defense strategy for their clients when allegations of fraud are brought against them by investors in a civil case, government agencies like the SEC, or almost anyone else.

Q. Is Securities Fraud Hard to Prove?

A. Securities fraud may be hard to prove in some cases. The most important thing a claimant will have to prove in a securities fraud case is intent or recklessness. It has to be shown that the accused intentionally or recklessly omitted or misinterpreted financial information and that the claimant suffered damages because of it.

Q. Is There a Statute of Limitation for Securities Fraud in Texas?

A. Yes, there is a statute of limitations for securities fraud in Texas. Generally, any legal action for securities fraud must be initiated within a certain time period after the date the fraud was committed or should have reasonably been discovered. In the case that legal action is not taken within that time frame, the claim will be barred. Statutes of limitation can sometimes be used as a defense in the event of a trial.

Trust The Law Offices of Richard Kuniansky to Defend You

If you are under investigation by the SEC or being sued for securities fraud in the Houston, Texas area, contact The Law Offices of Richard Kuniansky as soon as possible. I can make sure your rights are protected and begin building you a strong defense. I understand the gravity of such allegations and can work diligently to obtain an outcome in your favor.



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