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Addressing allegations of securities fraud

On Behalf of | Apr 29, 2024 | Comprehensive Business Law

Accusations of any type of criminal activity can significantly impact your reputation as a New York business professional. When accused of a business-related crime, like securities fraud, it’s important that you take action immediately to protect yourself.  Securities fraud, a type of white-collar crime, is sometimes also referred to as stock or investment fraud. Being knowledgeable of this crime and the potential consequences of a conviction can help you prepare to defend yourself against these serious allegations.

Securities fraud

When accused of securities fraud, you’re essentially being accused of misrepresenting financial information to persuade investors to act in your favor. This could involve purposely overvaluing or undervaluing an investment to get investors to buy or sell. There are some common terms often associated with securities fraud that you may be familiar with. These include Ponzi schemes, pyramid schemes, and insider trading.

As the use of technology for financial purposes continues to gain in popularity, more people may face allegations of securities fraud related to online trading. This could involve a pump-and-dump scheme where fraudulent information is passed through online chat or in financial forums. The intent behind this scheme is to get the price of a stock to go up, and then quickly sell off the stock once the price reaches a certain threshold.

Who can be accused of securities fraud?

Anyone who works in an investment-related position may be accused of securities fraud. If you work as a stockbroker, speculator, or any role where you have responsiblities related to investing for your company, you may be more likely to face these accusations. If you work for an organization like an investment bank, brokerage firm, or corporation, you could be charged with securities fraud if your organization is believed to be involved in investment schemes.

Securities fraud can be related to investments in commodities, real estate, securities, and other types of investments. Insider trading is another illegal activity that could lead to an individual being accused of fraud. No matter your position, you must take these allegations seriously.

What to do when accused

If you’re facing accusations of securities fraud, you must take steps to protect yourself. Being convicted of this type of crime could lead to hefty fines, prison time, and the loss of your career. It’s essential that you seek legal advice from someone with experience in dealing with fraud cases in New York. By promptly taking steps to get your legal matters in order, you can work with your legal team to decide how best to react to the charges against you.


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