Bilked and Bullied by Wall Street
The U.S. Securities and Exchange Commission (SEC) investigates violations of federal securities laws. Many of these SEC investigations involve allegations of insider trading, which occurs when someone decides to buy or sell a stock after learning insider information. If you have been accused of insider training, it is in your best interest to hire experienced SEC attorney Lisa Bragança to defend your rights.
It is important to understand the difference between legal and illegal insider trading. It is perfectly legal for an insider such as an employee to buy or sell shares of the company for which they work. This happens all the time and is not an illegal form of insider trading even though the individual is technically an insider within the company.
Illegal insider trading occurs when someone decides to buy or sell shares after learning non-public information about the company. For example, a CEO may decide to sell shares of his firm’s stock after learning that the company did not perform well in the last quarter. If the company’s quarterly performance has not been made public yet, this is considered illegal insider trading.
Many people believe that senior executives and company employees are the only ones who can be accused of insider trading, but that’s not the case. An insider is anyone who knows information about a company that has not been released to the public yet. This can include executives and employees, in addition to their friends, relatives, and acquaintances. It doesn’t matter what relationship you have with the company—all that matters is that you made a trading decision based on non-public information.
It’s important to note that if an insider shares non-public information with someone else, the insider is responsible for making sure that this person complies with federal securities laws. This means if you share non-public information with your family member, you are responsible for making sure your family member does not make trading decisions based on this non-public information.
Insider trading is illegal because it gives insiders an unfair advantage over other investors. Non-insiders can only make trading decisions based on information that has been released to the public. If someone makes a trading decision based on non-public information, it’s unfair to the investors who don’t have access to this information. To protect investors, the SEC prioritizes insider trading investigations.
The SEC often receives insider trading tips via anonymous calls and online sources. Investigators may also receive information regarding alleged insider trading from financial professionals. But in many cases, the SEC is able to identify potential wrongdoing simply by monitoring the market.
For example, major announcements such as product launches, mergers, acquisitions, and quarterly earnings can affect the value of a company’s stock. For this reason, it is normal for the trade volume of a company’s stock to increase drastically after an announcement of this nature is made. But, if the SEC notices that thee trade volume increased right before the announcement was made, this could indicate that someone was trading based on information that was not yet public.
To investigate insider trading allegations, the SEC may analyze trading records, interview potential witnesses, and review phone records and emails. This helps the SEC figure out whether non-public information was disclosed, who disclosed it, who had access to this information, and whether or not the information was used to make an illegal trading decision.
Insider trading can lead to serious criminal and civil penalties. If you are convicted of insider trading, you could face up to 20 years in prison and $5 million in criminal fines. Businesses that engage in insider trading can face up to $25 million in criminal fines for their involvement in this illegal activity. Both businesses and individuals who engage in insider trading can face civil fines in addition to these criminal fines.
The SEC also has the power to impose administrative penalties that include the suspension or revocation of your financial industry registrations. This means if you are a financial professional, engaging in insider trading could temporarily or permanently end your career.
You must aggressively fight accusations of insider trading in order to avoid these serious criminal and civil penalties. Don’t try to fight these allegations alone—turn to trusted insider trading attorney Lisa Bragança for legal representation right away.
Lisa Bragança is a former SEC Enforcement Branch Chief, so she has extensive experience with SEC investigations. She knows that the evidence gathered in insider trading cases is largely circumstantial, which means it is possible to fight the accusations.
It may be appropriate to argue that you did not use material information to make your trading decision. In an insider trading case, material information is information that could influence a reasonable investor’s trading decision. If the information you received was not material, you cannot be prosecuted for insider trading.
There are a number of different defense strategies that can be used in insider trading cases. Lisa will review the allegations against you to determine the most effective defense strategy for your case. Then, she will work tirelessly to weaken the SEC’s case against you and defend your rights. There’s no time to waste—contact Lisa Bragança at once to start protecting your future.
If you are under investigation for insider trading, it’s important to seek legal representation from SEC defense attorney Lisa Bragança as soon as possible. Lisa is a former SEC Enforcement Branch Chief with decades of experience handling SEC investigations. With her help, you can protect your rights and clear your name. To schedule your free consultation, call Bragança Law at (847) 906-3460 or submit your information using the form on this website.
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