New York residents may recall the insider trading scandals that took place in the 1980s and 1990s. Trading securities based on material and nonpublic information can lead to criminal charges and possible jail time. This is what one New Jersey man is facing for years of alleged improper transactions.
The man worked as an attorney for Apple. He had access to revenue and profits reports before they were released to the public. The attorney warned others about the fact that trading based on this information was prohibited. At the same time, he is alleged to have engaged in years of securities trading based on this information. Prosecutors allege that he made nearly a quarter of a million dollars off this trading pattern.
The attorney is defending himself by claiming that the laws under which he was charged are unconstitutional. He argues that insider trading laws do not specifically prohibit his conduct. In other words, he doesn’t deny that he’s guilty of what he is being accused of but argues that he should have never been implicated.
The stakes for the attorney are high as he has been charged with wire fraud and securities fraud. He faces a maximum of 20 years in prison and may be fined as much as $5 million if he is convicted on all counts. He is currently out of prison on bail while awaiting trial.
Prosecutors will generally contact people for more information when there is an investigation. Anyone who has heard from the government about their securities trading needs the services of a white-collar crimes attorney. A lawyer may help his or her client respond to requests for information. Prosecutors also like to speak with potential defendants before they are charged, and a white-collar crime lawyer could help guide their client through the process in the hopes of heading off an indictment or negotiating a plea agreement.