What is Securities Fraud Under State Law in Florida?

When most people think about a potential investigation or prosecution of securities and commodities fraud, they are often thinking about the federal investigations conducted by the US Securities and Exchange Commission (SEC), and the severe penalties associated with a federal conviction for offenses such as Ponzi schemes or insider trading. Yet securities fraud can also be charged as a state criminal offense under the Florida Statutes. How does Florida law define securities fraud, and what types of penalties are associated with a conviction? Our Tampa fraud defense attorneys can tell you more.

Fraudulent Securities Transactions Under Florida Law

Chapter 517 of the Florida Statutes concerns securities transactions, known as the Florida Securities and Investor Protection Act. Under Section 517.301, a person can face charges for fraudulent securities transactions. According to Section 517.301, state securities fraud can take multiple forms.

First, it is unlawful to render investment advice associated with the offer, sale, or purchase of a security when one of the following is true of an attempt or plan:

• To employ a device, scheme, or artifice to defraud;
• To obtain money or property with a misrepresentation of a material fact; or
• To engage in any type of business or transaction that would operate as fraud.

Second, it is unlawful to publish or give publicity to or circulate nearly any type of writing — from an advertisement to a letter to an investment service to a broadcast to another type of communication — that “although not purporting to offer a security for sale, describes such security for a consideration received or to be received directly or indirectly from an issuer, underwriter, or dealer, or from an agent or employee of an issuer, underwriter, or dealer, without fully disclosing the receipt, whether past or prospective, of such consideration and the amount of the consideration.”

And third, it is unlawful to knowingly and willfully falsify or otherwise material misrepresent information concerning securities to “any matter within the jurisdiction of the office” concerning the regulation of trade, commerce, investments, and solicitations.

Sentencing for Securities Fraud Under Florida Law

Many violations of the Florida Securities and Investor Protection Act will result in third degree felony charges, which can result in a prison sentence of up to five years and a fine of up to $5,000. When there are enhancing circumstances, including when the fraud involves $50,000 of value or more, the offense is often charged as a first degree felony that can result in a prison sentence of up to 30 years and a fine of up to $10,000.

In short, you will face felony charges for violating Florida’s laws on securities fraud, and you will need a defense attorney on your side.

Contact a Tampa Criminal Defense Attorney for Help with the Securities Fraud Charges You Are Currently Facing Under Florida State Law 

While securities and commodities fraud charges are often associated with a federal investigation by the SEC and federal charges, it is essential to know that you can also face securities fraud charges under the Florida Statutes, as we discussed above. If you are currently facing securities fraud charges or any other type of fraud charges under state or federal law, you should begin working with a criminal defense attorney as soon as possible. The consequences of a conviction are often severe. An experienced Tampa fraud defense lawyer at the Law Offices of Daniel J. Fernandez, P.A. can speak with you today to learn more about your case and to begin working with you on a defense strategy. Contact us for assistance.

Source:

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0500-0599/0517/Sections/0517.301.html