Los Angeles Insider Trading Defense Lawyers
Like many fraud-related crimes, insider trading can come with hefty penalties. If you are convicted of the crime, you may spend decades behind bars and end up penniless after having to pay an exorbitant fine. On top of that, your time in prison will likely hurt your close relationships, both with family and friends, and leave a stain on your reputation.
That is why you should contact a Los Angeles insider trading defense attorney at Werksman Jackson & Quinn LLP. We have years of experience under our belt when it comes to criminal defense. When we take on a client, we fight for them tooth and nail. Call our firm at (213) 688-0460 to learn more about your rights.
Not many people realize this, but certain kinds of insider trading are actually legal. Officers, directors, or any other so-called “insider” of a corporation can trade securities, such as stocks and bonds, within their own company, so long they fully report that trade to the U.S. Securities and Exchange Commission (SEC). In order for insider trading to become illegal, you must trade securities in such a way that breaks your fiduciary duty while also possessing information that is not available to the general public.
Lower-level employees are often not considered insiders, due to the fact that they normally don’t have access to private information or securities. However, if they steal securities or information from their employer, it could still fall under insider trading laws. In order for it to qualify as insider trading, however, the employee must then use that information to make a trade in stock or securities that they would not have without the stolen material.
Multiple people can also be charged with insider trading. For example, if one employee supposedly secured information as an “insider” and provide it to someone else who then uses that information to trade securities, California courts can charge both parties with insider trading, despite the fact that the first party was one the one who actually performed the act of trading securities. If the information is not yet available to the public, then the general rule of thumb is to not use it to trade securities.
Insider trading is a serious offense and one that the federal court system takes incredibly seriously. As such, the penalties for conducting insider trading can be incredibly harsh. If you are convicted, you may have to face:
- Up to $5 million in fines; and/or
- Up to 20 years in a federal prison.
Those penalties may be added on to, however, as inside trading charges are often accompanied by charges of various other frauds. This means if you were also found guilty of bribery, then the penalties for that conviction would be added to the penalties for your insider trading charge, making fines larger and the prison sentence longer.
Insider trading can be difficult to prosecute because the prosecution must be able to prove several different factors without a reasonable doubt. These can include:
- The knowing purchase or selling of a security
- The possession of information not available to the public
- The information possessed was material, as in information that a reasonable investor would likely not know
If the prosecution does not prove these factors, then their case may be flimsy and easy to disprove. From there an attorney should be able to implement a strong defense against the accusations. Some defenses that we commonly use when representing clients accused of insider trading are:
- You participated in legal insider traded
- The information you used was not material
- You used publicly known information
- You lacked all knowledge of an illegal insider trade
An accusation of insider trading is serious and could land you in jail for the rest of your life. That is why you need an experienced Los Angeles white-collar criminal defense attorney at your side, fighting for your case. We at Werksman Jackson & Quinn LLP believe that everyone deserves the very best possible representation, including those being tried for criminal offenses. If you have are being charged with insider trading, call us at (213) 688-0460.
Recent Case Results
- Complete Dismissal of Molestation Charges
Attorney Mark Werksman’s 29 year old client was falsely accused of molesting two neighborhood children and was subsequently charged with felony child molestation, with a significant prison sentence hanging over his head should he be convicted. Instead, at the preliminary hearing Werksman was able to convince the court to grant his client a complete dismissal of any charges.
- Decision Set Aside
Client, a college student in a faulty Title IX case, was awarded $130,000 in attorney fees.
- Probation with No Jail Time for Drug Money Laundering Charge
Wilmington man accused in New York federal court of laundering drug money through the sale of laptop computers. Mark was able to get the case transferred to federal court in Los Angeles, where he convinced the United States Attorney to reduce the charges. His client was sentenced to probation with no jail time on a misdemeanor conviction.