Florida Securities Fraud Lawyer
There are multiple types of fraud that are considered federal crimes. Often, these offenses are fairly self-explanatory. It is fairly clear that mail fraud is a crime that involves the United States Postal Service, while most people know that wire fraud involves the use of electronics, such as a phone or the Internet, to commit the crime. Securities fraud though, is something many people are not familiar with. Below, our Florida securities fraud lawyer explains this type of offense, and the penalties you may face if you are convicted.
What is Securities Fraud?
Securities fraud is any type of theft that involves a type of security. Some of the most common types of securities are bank notes, corporate stocks, municipal bonds, and investment contracts. As such, any time a person steals, cheats, lies, or deceits another person for financial gain involving a security, it is considered fraud.
Like many other types of fraud, securities fraud is a white collar crime. The main two federal laws that are involved in securities fraud cases are the Securities Exchange Act of 1934 and the Securities Act of 1993.
Types of Securities Fraud
Securities fraud can happen in many different ways. There are, however, certain schemes that are more common than others. These are as follows:
- Misrepresentations: The industry of stocks, bonds, and other investments depends on a person’s ability to predict the future value of a security. When a person misrepresents, or lies, about how a security will perform, it is considered security fraud. For example, if a stock broker told a client a stock was going to perform very well in the future, when they knew it would not but wanted to increase the sale of that stock, it is securities fraud.
- Insider trading: Companies that are involved in a type of security are not allowed to leak information to any other person if it is not yet public knowledge. When they do, it is considered insider trading. For example, the CEO of a publicly traded company may leak information that their product just passed a government test, increasing the future value of that stock. If that information was not yet made public and the CEO told someone to entice them to purchase more stock, it is insider trading.
- Churning: Churning is a very simple concept and it is also one of the most common types of securities fraud. Churning occurs when one person, usually a stock broker, pressures someone into investing an excessive amount of money into a security so the broker can make more profit in fees and commissions.
Call Our Securities Fraud Lawyer in Florida Today
Securities fraud is very serious and if convicted, you may face up to five years in federal prison and extremely heavy fines. If you have been charged, call our Florida securities fraud lawyer at O’Mara Law Group today. Our skilled attorney knows how to create the solid defense you need so you have the best chance of retaining your freedom. Call us today at 407-634-6604 or contact us online to schedule a consultation and to learn more about how we can help.