An innocent trade could result in federal charges of insider trading. The concept behind the laws on insider trading is that corporate insiders are restricted from profiting from the knowledge they have gained through non-public access to information about a company. The laws regarding insider trading are outlined in the “Exchange Act.” Buying or selling a security based on confidential information not available to other buyers is illegal.
Insider Trading: How it Happens.
Insider trading charges may be filed after an SEC investigation into the actions of an individual in buying or selling stock. The accusations are often related to the belief that he or she engaged in insider trading through one of the following actions:
- A corporate officer, director, or employee becomes aware of a confidential development that could either increase or decrease stock value and buy or sell based on this knowledge.
- Insider corporate information is shared with friends, associates, family members, or others who act to buy or sell based upon this confidential knowledge.
- Employees in the fields law, banking, brokerages, or even printing firms become aware of confidential information when providing services to a corporation, and act upon that information to buy or sell stock.
- Government employees gain confidential information about a stock through their duties and act upon that knowledge to gain profit by buying or selling.
Insider Trading Investigations
SEC investigators may notice a specific investor made an uncharacteristically large trade that appears to have no other basis than the person having access to insider information about the stock. Those who have never made a large trade and suddenly do so, then make a massive profit, are likely to be flagged and investigated by the SEC for insider trading.
An investor who through luck, may have profited frequently in stock trades, may be believed to have access to insider information. If you are under investigation for insider trading, you are at risk. It is imperative that you retain experienced legal representation at once.
Fighting Insider Trading Charges
To defend against charges of insider trading requires far more experience than the average insider trading lawyer can provide. These cases are highly complex, with charges based upon a thorough SEC investigation. The consequences of a conviction are severe, including incarceration in federal prison. Your defense must be initiated early – at the investigation stage when possible. The steps to take include:
- Never respond personally to an SEC investigator’s questions, or agree to an in-person interview, even if you are completely innocent. Speak only with your attorney, as your conversations are privileged. Something you say that is incorrectly interpreted by an SEC investigator could damage your case.
- Do not attempt to alter or destroy any records, as the SEC will be watching your actions. Their advanced investigatory techniques could reveal any of these actions, making matters worse, as the destruction deletion of emails or other information makes you appear guilty.
Contact James Alston for Help.
Contact Attorney James Alston to manage your case. His experience in this complex area of law make him one of the most qualified lawyers to protect your rights in a tough, uncomfortable, and unpleasant situation. His background includes:
- Former federal prosecutor for white collar crimes at the US Attorney’s Office
- Board-certified in criminal law and skilled federal trial lawyer
- Undertakes extensive investigations to reveal facts to counter the case against you
Call today for help from one of the best insider trading attorneys Houston has to offer. Our early intervention could help you avoid charges or reduce the damage.