Federal prosecutors take securities fraud cases seriously, aggressively pursuing individuals accused of financial deception, insider trading, and fraudulent investment practices. Agencies like the SEC (Securities and Exchange Commission) and the DOJ (Department of Justice) work together to investigate and prosecute alleged violations, often imposing severe criminal penalties.
As a former federal prosecutor, I, John Teakell, have handled high-profile securities fraud cases and understand the government’s approach. If you are under investigation or facing charges, securing an experienced securities fraud defense attorney is critical to protecting your future.
What is Criminal Securities Fraud?
Securities fraud involves deceptive financial practices that mislead investors, manipulate stock prices, or violate federal regulations. Common forms of securities fraud include:
- Misrepresentation of financial information – Providing false earnings reports or misleading statements to inflate stock value
- Stock manipulation schemes – Artificially driving up stock prices before selling shares for a profit
- Insider trading – Buying or selling stocks based on non-public, material information
- Selling unregistered securities – Offering investments that fail to meet SEC registration requirements
- Ponzi and pyramid schemes – Fraudulent investment operations that rely on new investors’ money to pay returns
The SEC investigates these offenses, often referring cases to the DOJ for criminal prosecution.
Federal Laws Governing Securities Fraud
Several federal laws regulate securities markets and outline penalties for fraudulent activities.
1. Securities Exchange Act of 1934
This law gives the SEC authority to regulate stock exchanges and prevent market manipulation.
2. Insider Trading Prohibitions (SEC Rule 10b-5)
Prohibits the use of non-public, material information for personal stock trading advantages.
3. Sarbanes-Oxley Act (SOX)
Imposes strict corporate financial reporting rules and criminal penalties for misleading investors.
4. Dodd-Frank Act
Strengthens financial regulations and increases penalties for securities fraud violations.
Common Criminal Securities Fraud Charges
Federal prosecutors pursue a range of securities fraud offenses, including:
1. Misrepresentation of Financial Information
Knowingly providing false financial statements or earnings reports to attract investors or inflate stock prices.
2. Insider Trading
Using confidential company information to buy or sell stocks before that information becomes public.
3. Ponzi and Pyramid Schemes
Operating fraudulent investment schemes where returns are paid using funds from new investors rather than legitimate profits.
4. Selling Unregistered Securities
Marketing or selling investment products without proper SEC approval or disclosure.
5. Market Manipulation (“Pump and Dump” Schemes)
Artificially inflating stock prices through misleading statements or false trading activity to profit before the stock collapses.
For more on how I defend financial fraud cases, visit my white-collar crime defense page.
Penalties for Securities Fraud Convictions
Securities fraud carries severe legal consequences, including:
1. Federal Prison Sentences
- Convictions can result in 5 to 25 years in prison, depending on the scale of the fraud.
- Multiple charges can lead to stacked sentences and significantly longer prison time.
2. Financial Penalties & Asset Forfeiture
- Fines can reach millions of dollars, particularly in large-scale fraud cases.
- The government may seize bank accounts, real estate, and assets linked to the fraudulent scheme.
3. Civil Enforcement Actions
- The SEC can impose bans from financial markets, even if no criminal conviction occurs.
- Defendants may be forced to return investor funds (disgorgement), leading to financial ruin.
For more details on federal fraud prosecutions, visit my federal cases page.
Defenses Against Securities Fraud Charges
A strong legal defense can mean the difference between a conviction and a dismissal. Some of the most effective defenses include:
1. Lack of Intent to Defraud
To secure a conviction, the prosecution must prove you knowingly engaged in fraudulent activities. If losses resulted from market fluctuations or unintentional misstatements, I will challenge the claim of intent.
2. Insufficient Evidence
Securities fraud cases often rely on circumstantial evidence. I thoroughly analyze financial records, emails, and SEC filings to expose weaknesses in the government’s case.
3. Good-Faith Compliance with SEC Regulations
If you followed SEC disclosure rules and had no fraudulent intent, I will demonstrate that any misstatements were unintentional errors, not criminal acts.
4. Entrapment by Law Enforcement
If undercover agents or confidential informants pressured you into illegal transactions, an entrapment defense may be applicable.
If you are also facing money laundering or other financial crime allegations, visit my money laundering defense page for additional legal insights.
Why Hire John Teakell for Securities Fraud Defense?
With decades of experience handling securities fraud, insider trading, and investment fraud cases, I provide aggressive and strategic defense against federal charges.
What Sets Me Apart?
- Former Federal Prosecutor Insight – I know how the government builds securities fraud cases and how to counter them.
- Extensive White-Collar Defense Experience – Successfully handling SEC, DOJ, and financial fraud cases.
- Proven Results – Securing dismissals, acquittals, and reduced sentences for high-profile financial fraud clients.
If you are under investigation or facing charges, do not wait—contact me immediately to start building your defense.
Contact Teakell Law Today
Securities fraud charges can destroy your career and financial future. My firm provides aggressive, experienced defense to protect your freedom and reputation.
Visit my contact page to schedule a confidential consultation.
