Challenging Allegations and Investigations

Allegations of insider trading may have both criminal and civil repercussions for the accused. Insider trading is when somebody receives investment information that is not available to the rest of the public, and makes a decision based off of that. A defendant may actually face parallel cases filed by both the U.S. Attorney's Office and the SEC (Securities and Exchange Commission), an issue that will present particular difficulties for any lawyer who handles your case.

“This man is a very effective Los Angeles criminal defense attorney. I was charged but I never had to go to court because the case was thrown out thanks to his efforts. I was very worried because I didn’t know anyone who could confirm my location, but he was able to prove that I was innocent.” Jason, CA

As a criminal defense attorney who has been working as an insider trading attorney since 1984, I have the experience you should look for in your legal counsel. I am confident in handling cases in both state and federal court and am ready to see how I can assist you. When you call my law offices to talk about your case, I will give you straight answers and information.

Most of the time, the first indication that you or your company are under investigation for insider trading will be when you receive a phone call or visit from an attorney who works for the SEC. The attorney will ask specific questions about trading activities with the precursor that answering these questions is voluntary. It is highly inadvisable to answer any questions over the phone. In the surprise or frustration of facing allegations of insider trading, one may make admissions or statements that can be misconstrued and actually support the SEC's case against you. The best course of action is to politely decline to answer any questions without your own attorney present. The SEC attorney will then reschedule the interview for a later date when your lawyer can be present to protect your interests.

Penalties for Insider Trading

According to the New York Times, "Sentences for insider trading have been on the rise since the Justice Department began its latest crackdown in 2009 that started with the arrest of Raj Rajaratnam. The past year had the highest sentences ever given for this type of crime, including the 11-year prison term for Mr. Rajaratnam." Typical penalties for insider trading include hefty fines and jail sentences. However, recently, the Securities and Exchange Commission (SEC) has attempted to bar former insider traders from serving as executives of any publicly traded company.

Harsh penalties also exist for individuals who help someone carry out insider trading. According to U.S. law, "The amount of the penalty which may be imposed on any person, who at the time of the violation, directly or indirectly controlled the person who committed such a violation, shall be determined by the court in light of the facts and circumstances, but shall not exceed the greater of $1,000,000, or three times the amount of the profit gained or loss avoided as a result of such controlled person's violation."

Officials have been cracking down on insider traders and imposing harsher sentences because not doing so " creates the potential for a defendant to commit multiple and brazen acts of insider trading." With insider trading receiving more attention and stricter consequences these days, you should make sure you have an experienced and aggressive criminal defense attorney fighting on your behalf. Not all insider trading is illegal, and I can help you evaluate each detail of your case and craft the best defense possible. If you entrust the details of your case to me, I can:

  • Assess the trading that your company does and what motivates your trading
  • I will assess if you knew anything non-public prior to trading
  • If something non-illegal, such as a news article or stock copy, motivated your trade decision I will help show this in court
  • If a Formal Order has been issued by the SEC, I will request a copy and examine it before you are questioned

Get Attorney Robert M. Helfend on your side!

Early intervention in an insider trading investigation is absolutely crucial if you are to ensure that the government does not take advantage of you and your willingness to cooperate. Protect your freedom, assets and future by involving a Los Angeles criminal defense lawyer who is familiar with handling cases on both a state and federal level and who has the resources to properly counteract these steps taken against you. Contact the office today to get the help you need in the face of an investigation or formal charges!

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