People expect that those who are involved in the finance industry will act professionally. For those who trade stocks, making sure that all transactions comply with the applicable laws is imperative. Unfortunately, not all stock-traders are ethical individuals. Then, there are instances where a trader might unknowingly violate a trading law.
There are many laws that people who work in a publicly traded company have to follow. These are meant to ensure that there isn't anything illegal going on that could harm shareholders or the general public. One of the actions that is forbidden is insider trading. This has to do with a person with intimate knowledge of a company using that information to make decisions about their own personally held shares in the company. It is also meant to prevent these individuals from passing their knowledge on to others who have shares.
Wells Fargo found itself in some legal hot water after being slapped with a class action securities fraud lawsuit that was filed by investors. The claim noted that the banking giant made omissions and misstatements in the disclosures it provided to those investors.
We recently discussed the deal that was reached in the securities fraud case involving the Theranos founder. This case was able to be resolved via a plea deal agreement, which is something that is actually very common with these cases.
Securities fraud can cost you time and money. In some cases, you might be stripped of voting rights and other duties that come with being involved in publicly traded companies. Elizabeth Holmes, founder of Theranos Inc., recently entered into a deal with the U.S. Securities and Exchange Commission (SEC) that has several implications for her future.
Securities law is a complex area that requires a comprehensive look at the circumstances of a case to determine what options are present. We understand that you might be upset and frightened about what is to come in regards to your case. We can help you work through the issues one at a time so that you know where you stand.
When you have inside knowledge of a company that is publicly traded, you need to make sure that you are handling that knowledge in an appropriate manner. Namely, you should be certain you aren't committing insider trading, which is a form of securities fraud. Being charged with securities fraud can mean that you are blacklisted in your profession and that you are looking at spending time in prison.
There are a lot of things that people find mystifying about facing securities fraud charges. One of the things that is often puzzling is some of the terms that are used in these cases. If you are facing this type of criminal charge, we want to make sure that you understand some of the terms you might come across.
As we recently discussed, you need to take precautions to make sure that you don't do anything that could be considered insider trading. In some cases, this is unavoidable simply because you don't think that a specific circumstance will lead to this accusation.
Insider trading is criminal action that the Securities and Exchange Commission sometimes takes a harsh stance against. This is something that can easily be prevented, but it can also occur in some cases when you don't even realize what is going on.