Securities Fraud Charges
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How Can You Defend Against Securities Fraud Charges Stemming from Insider Trading?

Defending against securities fraud charges of insider trading isn’t easy. The deck is stacked against you, and you need a careful and strategic approach to avoid the serious legal and financial consequences that come with a conviction. A securities fraud defense lawyer should be your first call.

How Can You Defend Against Securities Fraud Charges Stemming from Insider Trading?

Contact a Securities Fraud Defense Lawyer

Engage an experienced attorney who specializes in financial fraud defense and securities law. You should take this step even before any formal charges are filed, if possible. If you even know that you are under investigation, or if someone else at the company you work for is under investigation, it’s worth making that phone call to ensure you are protected as soon as possible. Visit this page to connect with a qualified and experienced Texas lawyer. They will help you explore possible defenses, such as the following.

Lack of Material, Non-Public Information

If you can demonstrate that the information in question was not material or that it was already public at the time of the trades, this can undermine the prosecution’s case. Material information is anything that a reasonable investor in your position would’ve considered important when making an investment decision. If some of the information the prosecution is using really has no bearing, your lawyer may be able to appeal via the input of other experts to show that it is not material. Likewise, if the information that you are supposed to have used was already public, this is a very strong defense.

Independent Trades

Coincidences happen. If you were able to show that the trades the prosecution is worried about were actually part of a preplanned trading plan, or a part of a regular pattern and fit that pattern, you may be able to show that the trades were made independent of any insider information. If you can establish that you have a routine strategy, this can be very helpful to your case.

Lack of Intent

If you can demonstrate that there was no intent to deceive or defraud investors, or at least show that no evidence exists showing such intent, this will weaken the prosecution’s case, though it may not, by itself, be a sufficient defense. This can be done by showing that information was obtained in inadvertently, the trades were made for legitimate business reasons, etc.

Misidentification of the Source

If the prosecution cannot definitively prove that the information came from an insider source, this can cast doubt on their charges. Your lawyer may be able to pursue this avenue of defense by questioning the credibility of witnesses or showing that the prosecution cannot actually trace the chain of communication through which you supposedly obtained the information. In other cases, this might be shown by proving that the information was obtained from another, lawful source.

Defending yourself against a charge of securities fraud is serious, but with the help of an experienced lawyer, your chances of a good outcome will be much greater.

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