At Varghese & Associates, PC, our team of experienced securities fraud lawyers is dedicated to protecting individuals and businesses facing allegations of securities fraud. With our deep understanding of federal securities laws and regulations, we provide robust defense strategies tailored to each client's unique situation.

What is Securities Fraud?

Securities fraud is a complex and serious area of white-collar crime that our federal white-collar crime lawyers at Varghese & Associates, PC, frequently handle. It encompasses various deceptive practices in the stock and commodities markets that violate federal securities laws. Understanding the various forms of securities fraud is crucial for investors, financial professionals, and corporations alike.

Here are common types of securities fraud:

Insider Trading

This occurs when individuals with non-public, material information about a company trade on that information for personal gain. It's not just corporate insiders who can be charged; anyone who trades on material, non-public information may be liable.

Ponzi Schemes

Named after Charles Ponzi, these schemes promise high returns to investors but use money from new investors to pay earlier investors. Eventually, the scheme collapses when there aren't enough new investors to sustain payments.

Accounting Fraud

This involves manipulating financial statements to mislead investors about a company's financial health. It can include overstating revenues, understating liabilities, or manipulating expense reports.

Misrepresentation in Financial Statements

Similar to accounting fraud, this involves providing false or misleading information in a company's financial reports, prospectuses, or other documents filed with the SEC.

Market Manipulation

This includes practices like "pump and dump" schemes, where individuals artificially inflate a stock's price through false statements and then sell their shares at the inflated price.

Broker Embezzlement

This occurs when financial professionals misappropriate their clients' funds for personal use.

Securities Offerings Fraud

This involves selling unregistered securities or making material misrepresentations in the sale of securities.

High-Yield Investment Fraud

Scammers promise extremely high returns with little to no risk, often targeting specific groups or communities.

Late Day Trading

This illegal practice involves making trades after market close but at the day's closing price, taking advantage of information released after markets close.

Front Running

This occurs when a broker or other financial professional trades ahead of a large order they know is coming, to benefit from the price movement.

Churning

This is the excessive buying and selling of securities in a client's account by a broker, primarily to generate commissions.

Microcap Fraud

This involves fraud related to penny stocks and small companies with limited publicly available information.

How a Securities Fraud Defense Lawyer Can Help

At Varghese & Associates, PC, our seasoned securities fraud lawyers assist clients facing complex securities fraud allegations. As a leading NYC law firm with experience g in white-collar defense, we understand the intricacies of securities law and the potentially devastating consequences of fraud charges. Here's how our federal white-collar crime attorneys can help:

• Early Intervention: We can step in at the first sign of an investigation, often before charges are filed. Our proactive approach can sometimes prevent charges altogether or limit their scope.
• Thorough Case Evaluation: Our securities fraud lawyers comprehensively review your case, analyzing all relevant documents and transactions to build a strong defense strategy.
• Regulatory Compliance Guidance: We help clients navigate the complex web of securities regulations, ensuring compliance and reducing the risk of future issues.
• Representation in Investigations: Our federal white-collar crime attorneys protect your rights throughout SEC investigations, grand jury proceedings, and interviews with federal agents.
• Negotiation with Prosecutors: We leverage our experience and reputation to negotiate with federal prosecutors, often securing favorable plea deals or reduced charges when appropriate.
• Vigorous Courtroom Defense: If your case goes to trial, our skilled litigators will provide aggressive representation, challenging the prosecution's evidence and presenting a compelling defense.
• Mitigation of Penalties: Even in cases where some wrongdoing occurred, we work tirelessly to minimize potential penalties, including fines, disgorgement, and imprisonment.
• Protection of Professional Licenses: We understand the importance of your professional credentials and fight to protect your licenses and ability to practice in your field.
• Internal Investigations: We conduct thorough internal investigations for corporate clients to identify potential issues and develop remediation strategies.
• Crisis Management: We help manage the reputational fallout of securities fraud allegations, working to minimize damage to your personal and professional standing.
• Appeals and Post-Conviction Relief: If you've already been convicted, our federal white-collar crime lawyers can explore options for appeal or relief.
• Ongoing Compliance Support: We provide continuing advice and support to help you avoid future securities law violations.

Penalties of a Securities Fraud Conviction

At Varghese & Associates, PC, we believe our clients must understand the potentially severe consequences of a securities fraud conviction. As experienced federal white-collar crime lawyers, we've seen firsthand how these penalties can devastate lives and careers. Here's an overview of the potential penalties you may face:

Criminal Penalties

Imprisonment

Securities fraud convictions can result in substantial prison terms. Depending on the nature and scope of the fraud, sentences can range from a few years to several decades. For instance:

• Up to 20 years for each count of securities fraud
• Up to 25 years for securities fraud that significantly impacts a financial institution

Fines

The financial penalties for securities fraud can be astronomical:

• Up to $5 million for individuals per violation
• Up to $25 million for organizations per violation
• In some cases, fines can be up to twice the gross gain or loss from the offense

Restitution

Courts often order defendants to pay restitution to victims, which can amount to millions of dollars.

Civil Penalties

• SEC Fines: The Securities and Exchange Commission can impose additional civil monetary penalties, which can be substantial.
• Disgorgement: You may be required to forfeit all profits gained from the fraudulent activities.
• Officer and Director Bars: The SEC can bar individuals from serving as officers or directors of public companies, either temporarily or permanently.

Professional Consequences

• Loss of Professional Licenses: A conviction often results in the loss of professional licenses, including those for attorneys, accountants, and financial advisors.
• Industry Bans: FINRA and other regulatory bodies may impose lifetime bans from working in the securities industry.
• Reputational Damage: The stigma of a securities fraud conviction can have long-lasting effects on your personal and professional reputation.

Additional Consequences

• Asset Forfeiture: The government may seize assets believed to be connected to the fraud.
• Civil Lawsuits: Beyond criminal and regulatory actions, you may face civil lawsuits from investors who suffered losses.
• Supervised Release: After serving a prison sentence, you may be subject to years of supervised release, restricting your freedom and opportunities.
• Collateral Consequences: These can include difficulties in obtaining loans, housing, or employment, and potential loss of voting rights.

At Varghese & Associates, PC, we understand how daunting these potential penalties can be. That's why our federal white-collar crime attorneys fight tirelessly to protect our clients from the full brunt of these consequences. Our strategies may include:

• Challenging the prosecution's evidence
• Negotiating plea deals to minimize charges and penalties
• Arguing for alternative sentences or reduced prison terms
• Presenting mitigating factors to reduce fines and other penalties
• Appealing convictions or sentences when appropriate

Remember, an accusation is not a conviction. With the right legal strategy, avoiding or significantly reducing these penalties is often possible. If you're facing securities fraud charges, don't wait to seek legal help. The stakes are too high to face alone.

Signs You're Under Investigation for Securities Fraud

At Varghese & Associates, PC, our federal white-collar crime lawyers have extensive experience in recognizing the early indicators of securities fraud investigations. As a leading NYC law firm with experience in white-collar defense, we believe that early awareness and action can significantly impact the outcome of your case. Here are key signs that you may be under investigation for securities fraud:

• Subpoenas: Receiving a subpoena from the SEC, FINRA, or a federal grand jury clearly indicates an ongoing investigation. These may demand documents, testimony, or both.
• Unexpected Regulatory Audits: Sudden, intensive audits by regulatory bodies like the SEC or FINRA, especially if they seem to focus on specific transactions or periods, may signal an investigation.
• Wells Notice: This formal notification from the SEC indicates that the agency is considering bringing an enforcement action against you or your company.
• Unusual Inquiries from Business Associates: If colleagues, business partners, or clients mention being contacted by federal agents or regulators about your activities, it could indicate an ongoing investigation.
• Whistleblower Activity: If you become aware of a current or former employee providing information to regulators, it may be a sign of an investigation.
• Increased Internal Scrutiny: Sudden, intense interest from your company's legal department or board of directors in specific transactions or practices could indicate awareness of an external investigation.
• Media Inquiries Journalists: asking pointed questions about your business practices might suggest a leak from an ongoing investigation.
• Target Letters: Receiving a "target letter" from the Department of Justice explicitly states that you're the subject of a federal investigation.
• Search Warrants: If federal agents execute a search warrant at your home or office, it's a strong indicator of an advanced stage investigation.
• Asset Freezes: Unexpected inability to access certain financial accounts may suggest they've been frozen as part of an investigation.
• Informal Requests: for Information Even seemingly casual requests from regulators for information or clarification on certain matters could be part of a broader investigation.
• Unusual Trading Activity Alerts: If you're in the securities industry, receiving an unusually high number of alerts about trading activity could indicate scrutiny from regulators.

What To Do If You Are Charged with Securities Fraud

At Varghese & Associates, PC, we understand that being charged with securities fraud can be overwhelming and frightening. As experienced federal white collar crime lawyers, we've guided numerous clients through this challenging process. If you find yourself facing securities fraud charges, here are the critical steps you should take:

Remain Silent

Exercise your right to remain silent. Do not discuss your case with anyone except your attorney. Anything you say can be used against you, even if you believe you're innocent. Politely decline to answer questions from law enforcement, prosecutors, or regulatory agencies without your lawyer present.

Contact a Federal White Collar Crime Attorney Immediately

Time is of the essence. Contact an experienced securities fraud defense lawyer as soon as possible. At Varghese & Associates, PC, we're available 24/7 to start protecting your rights from the moment charges are filed.

Preserve All Documents

Do not destroy, alter, or hide any documents or digital files, even if you think they might be incriminating. Destroying evidence can lead to additional charges. Secure all potentially relevant materials and provide them to your attorney.

Avoid Public Statements

Refrain from making any public statements about your case, including on social media. Any statements you make could be used against you in court.

Prepare for Asset Freezes

In securities fraud cases, the government may freeze your assets. Discuss this possibility with your attorney to prepare financially and legally.

Cooperate with Your Attorney

Provide your lawyer with all relevant information and documents. Be honest and thorough – your attorney needs a complete picture to build the strongest possible defense.

Consider Internal Corporate Response

If the charges involve your business activities, work with your attorney to develop an appropriate corporate response. This may include internal investigations or changes in company policies.

Prepare for Potential Civil Actions

Securities fraud charges often trigger parallel civil lawsuits. Discuss with your attorney how to handle potential civil liabilities alongside your criminal defense.

Maintain Your Professional Relationships

While you shouldn't discuss your case, try to maintain professional relationships where possible. Your attorney can advise on appropriate communications with employers, business partners, and clients.

Take Care of Your Mental Health

Being charged with securities fraud is incredibly stressful. Consider seeking support from a mental health professional who can help you cope with the emotional toll.

Understand the Charges and Potential Penalties

Work with your attorney to fully understand the specific charges against you and the potential consequences. This knowledge is crucial for making informed decisions about your defense strategy.

Explore All Defense Options

Your attorney will examine all possible defenses, which may include challenging the evidence, questioning the intent element of the crime, or exploring regulatory compliance issues.

Consider Negotiation Possibilities

In some cases, it may be advantageous to negotiate with prosecutors. Your attorney can explore options for plea agreements or other resolutions to minimize potential penalties.

Prepare for a Potential Trial

While many cases are resolved before trial, it's important to be prepared if your case goes to court. Work closely with your attorney to understand the trial process and prepare your testimony if you choose to testify.

At Varghese & Associates, PC, we're committed to providing aggressive, strategic defense for our clients facing securities fraud charges. Our team of federal white-collar crime lawyers has the experience to navigate the complexities of securities law and federal prosecutions.

Remember, being charged doesn't mean you'll be convicted. With the right legal strategy, it's often possible to achieve favorable outcomes, whether through case dismissal, acquittal at trial, or a favorable plea agreement.

Protect Your Future: Act Now

Securities fraud charges can change your life in an instant. Don't leave your freedom, reputation, and career to chance. At Varghese & Associates, PC, our experienced federal white-collar crime lawyers are ready to fight for you. Contact us today for immediate legal defense.

Securities Fraud Defense Lawyer FAQs

At Varghese & Associates, PC, we understand that facing securities fraud charges can be overwhelming. Here are answers to some frequently asked questions about securities fraud defense:

What exactly is securities fraud?

Securities fraud involves deceptive practices in the stock and commodities markets that violate federal securities laws. This can include insider trading, Ponzi schemes, accounting fraud, and misrepresentation in financial statements.

Why do I need a securities fraud lawyer?

Securities fraud cases are highly complex, involving intricate financial transactions and nuanced legal issues. A securities fraud attorney has the experience to navigate these complexities and build a strong defense.

What should I do if I'm under investigation for securities fraud?

Contact a securities fraud defense lawyer immediately. Don't speak to investigators without legal representation, and don't destroy or alter any documents.

Can securities fraud charges be resolved without going to trial?

Yes, many cases are resolved through plea agreements or pre-trial diversion programs. Our federal white collar crime attorneys are skilled negotiators and can often secure favorable outcomes without trial.

What defenses are typically used in securities fraud cases?

Common defenses include lack of intent to defraud, good faith belief in the truthfulness of statements, and challenging the government's evidence. The specific defense strategy depends on the details of each case.

How long do securities fraud investigations and trials typically last?

Investigations can last months or even years. If charges are filed, the pre-trial process often takes several months to a year or more. Trials can last anywhere from a few days to several weeks.

Will I go to prison if convicted of securities fraud?

While prison sentences are common in securities fraud cases, they're not inevitable. Sentencing depends on various factors, including the amount of loss involved and the defendant's criminal history.

Can I keep my professional license if convicted of securities fraud?

Professional licenses are often at risk in securities fraud cases. However, with effective legal representation, it may be possible to negotiate outcomes that allow you to retain your license or have a path to reinstatement.

How much does it cost to hire a securities fraud defense lawyer?

Legal fees vary depending on the complexity of the case and the attorney's experience. At Varghese & Associates, PC, we provide transparent fee structures and work to deliver value for our clients.

Can you help if I'm being investigated but haven't been charged yet?

Absolutely. Early intervention is crucial in securities fraud cases. We can guide you through the investigation process, protect your rights, and potentially prevent charges from being filed.

What if I've already been convicted? Can you still help?

Yes, we handle appeals and post-conviction matters. If you believe errors were made in your trial or if new evidence has come to light, contact us to discuss your options.

Remember, every case is unique, and the best course of action depends on your circumstances. If you're facing securities fraud charges or are under investigation, don't hesitate to reach out to Varghese & Associates, PC, for a confidential consultation. Our experienced federal white-collar crime lawyers are here to protect your rights and fight for the best possible outcome in your case.