Securities Fraud Defense

November 20, 2014

Securities fraud typically involves a crime that affects a stock, commodity or investor. Oftentimes, securities fraud entails an organization or individuals from the organization making false claims about a company or its stock to the detriment of the public. The penalties for securities fraud can be very severe, and you will want to work with a New Jersey securities fraud lawyer if you face such a charge.

Federal Laws Addressing Securities

The area of securities is highly regulated by the federal government. Some federal laws that a New Jersey securities fraud lawyer can explain to you include:

  • The Securities Act of 1933. Companies that issue securities must follow this law that governs divulging of corporate information. Many times individuals are accused of offering fraudulent data or misrepresenting key information.
  • The Securities Exchange Act of 1934. Individuals that trade and sell securities must comply with this law that governs fraud. This is the law commonly invoked with insider trading cases.
  • Sarbanes-Oxley Act. This relatively new law addresses financial disclosures that a company must make; specifically, that companies must be accurate when disclosing accounting information about their assets, debts and other financial information.

Types of Securities Fraud

There is a wide variety of securities fraud. Two common types of securities fraud include:

  • Corporate Fraud. An official at the company may mislead investors and shareholders by providing false and inaccurate information.
  • Insider Trading. Insider trading generally refers to individuals who buy or sell stock based on nonpublic information. For example, if an insider at a company is aware that the company is about to announce bankruptcy, selling stock based on this nonpublic information would violate insider trading laws.

The penalties for securities fraud are very severe. Depending upon the amount of alleged fraud, you could face prison time, monetary fines, order of restitution and/or forfeiture of assets, community service and a host of other penalties. That is why it is very important to contact a securities fraud defense attorney.

Contact a New Jersey Securities Fraud Attorney

To learn more about a securities fraud charge, schedule a consultation with attorney Tim Anderson by calling 732-212-2812.


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