What is Federal Securities Fraud?
Federal securities fraud is a specific type of criminal fraud offense that, like many other federal fraud offenses, can be charged under the United States Code. Unlike many other types of federal fraud, however, the agency that is typically responsible for investigating federal securities fraud cases is the Securities and Exchange Commission (SEC). With federal fraud cases, investigations can take quite a long time before a person or multiple individuals are ultimately charged. Accordingly, if you have any indication that you are under investigation by the SEC for securities fraud, it is crucial to seek legal advice. The sooner you can begin working on a defense strategy, the better. Anyone who has already been charged should also seek immediate assistance from a federal securities fraud defense attorney.
Our Tampa federal fraud defense lawyers can provide you with more information about the federal offense of securities and commodities fraud, and we can begin working with you on your defense if you are the subject of an investigation or you are currently facing charges under federal law.
Federal Law Against Securities and Commodities Fraud
The federal law against securities and commodities fraud is cited under 18 USC 1348. This criminal offense can be charged in relation to intentional, deceptive conduct involving the actual or attempted purchase of securities or sale of securities. Charges often brought under this statute include those for Ponzi schemes, insider trading, pyramid schemes, “pump and dump” scams, and false or misleading investor disclosures, and fraudulent corporate filings.
A conviction for this federal offense can result in a significant monetary fine and prison sentence of up to 25 years — to be clear, it is an offense that is taken extremely seriously, as the sentencing reflects.
Elements of a Federal Securities Fraud Case
To be convicted of securities and commodities fraud under 18 USC 1348, the prosecution must prove the following elements of the offense:
- Existence of a scheme to defraud;
- Intent to defraud;
- Material misrepresentation (false or fraudulent pretenses, representation, or promises);
- Misrepresentation made in connection with the purchase or sale of any commodity or securities transaction; and
- Involvement of interstate commerce.
While state laws also have statutes that prohibit securities and commodities fraud, the primary distinction with a federal case is that the federal charge involves interstate commerce. Both types of fraud charges — federal and state — require intent.
Contact Our Tampa Criminal Defense Lawyers for Assistance with the Securities Fraud Charges You Are Facing Under State or Federal Law
While some people mistakenly assume that securities fraud is not a serious offense because it is a form of white-collar crime, it is crucial to know that a conviction for securities fraud or related fraud under federal or state law will result in severe penalties that are likely to include prison and a substantial monetary fine. Accordingly, if you are facing charges, it is essential to have an experienced criminal defense lawyer on your side. One of the experienced Tampa fraud defense attorneys at the Law Offices of Daniel J. Fernandez, P.A. can begin working with you today. Contact our firm to learn more about the white-collar criminal defense services we provide in Florida.
Source:
law.cornell.edu/uscode/text/18/1348
