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INSIDER TRADING

Attorney Representation in New York, NY for over 40 years

Having brought almost no prosecutions arising from the 2008 Wall Street debacle, the U. S. Department of Justice has in the last several years brought many insider trading cases against fund managers and individuals even though insider trading was not a factor in the misconduct that brought the economy down. This is purely a face saving strategy.

In New York, our lawyer can review your actions for criminally liability

Insider trading, a White Collar Crime, arises when an individual trades in securities on the basis of material non-public information.  While the most notorious of these cases have been brought against fund managers, many other people who are not involved in the securities industry have been charged and convicted in insider trading cases by the U. S. Attorney’s Offices for the Southern District of New York and the District of New Jersey.   A typical case will involve an employee (Defendant 1) of a public company (Company A) who receives material information concerning Company A or another public company (Company B) that Company A intends to acquire.  If Defendant 1 passes the information onto Defendant 2, and Defendant 2 acts on that information, both defendants are criminally liable. 

An experienced criminal defense attorney is needed to negotiate complex legal cases

In recent years, DOJ has been obtaining wiretap orders in some celebrated insider trading investigations.  Even without such direct evidence, many defendants have been convicted on the basis of circumstantial evidence, often consisting of telephone toll records, press releases, and trading records.  In insider trading cases, the battle is usually over the issues of loss, restitution, whether or not a custodial sentence is appropriate and, if so,  the length of such a sentence.  It is over these issues that the criminal defense lawyer proves his mettle.  The sentencing guidelines are driven by the amount of the loss. The method of calculating the loss is quite technical and subject to negotiation.

The SEC can be expected in to bring a civil action against every criminal defendant seeking a consent order barring the defendant from being an officer or director of a public company and employment in the securities industry.  The SEC will also seek civil penalties.

Read more on Insider Trading here.

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