White collar crime charges are serious, and a conviction has the potential to bring life-altering penalties. If you are facing allegations of this type of criminal behavior, you would be wise to learn how you can move to protect your own interests.
One type of white collar crime is securities fraud, which happens when a person makes a statement regarding the value of a company’s stock, causing others to make financial decisions based on that false information. Securities fraud is actually quite simple, but securities regulations are complex, so if you find yourself facing this type of federal charge, you would be wise to secure guidance and counsel.
Types of securities fraud
As with any type of federal charge, a conviction for securities fraud could result in prison time, fines, loss of career, loss of reputation and much more. There are various types of securities fraud, and some of the most common include:
- Insider trading: Insider trading is the sharing of confidential information about a company with a person who then makes financial decisions based on what he or she heard. It is essentially an attempt to influence the purchase or sale of stock.
- Security fraud by the company: This happens when a company fails to accurately report their financial situation to shareholders. This can result in the artificial increase in value of the company’s stock.
- Third-party misrepresentation: This type of securities fraud occurs when a third party provides false information about a company, industry or stock market. This can influence others to buy stock in a company, which would drive the value up.
Florida residents who either intentionally commit securities fraud or do so because they do not have a full understanding of securities regulations face a myriad of serious penalties. If charged, it is prudent to being working on a defense strategy as soon as possible.
Your future after white collar crime charges
Despite the seemingly benign nature of some types of securities fraud, it is easy to overlook the grave nature of an investigation or charges. These are still federal charges, and you would be wise to approach your current legal situation with an appropriate amount of concern.
Even if you are not currently facing charges of securities fraud, but you believe that you might be, or an investigation is already underway, you have no time to lose. It is possible to protect yourself and defend against these types of charges, but your prompt action is paramount.