An allegation of insider trading can threaten your career, reputation, and financial future. These cases often involve complicated financial transactions, communications, and questions about whether someone improperly used material, nonpublic information.
Understanding the investigation and potential consequences is an important first step.
What is insider trading?
Insider trading generally involves securities transactions made in violation of duties of trust or confidence while using material, nonpublic information.
Not every trade made by someone with access to confidential information is unlawful. Investigators must examine the facts, relationships, information involved, and applicable securities laws.
What penalties could someone face?
Insider trading allegations may result in criminal investigations, civil enforcement actions, or both.
Depending on the charges and circumstances, consequences can include substantial fines, financial penalties, restrictions on professional activities, and imprisonment.
The Securities and Exchange Commission may also pursue civil remedies, including financial penalties and other court-ordered relief.
Why does the defense strategy matter?
Insider trading investigations can involve extensive financial records, electronic communications, trading histories, and questions about when information became available.
An effective defense requires careful attention to the evidence and the legal standards involved. Early representation can also help individuals understand how to respond to investigators and protect their rights.
Facing a federal financial crime investigation?
Gerber, Green & Principe represents clients in complex federal criminal matters, including white-collar crime and fraud allegations.
Explore our federal criminal defense services, or contact our firm to discuss your circumstances.
