Oakland County Insider Trading Attorney

Providing Clients With a Quality Legal Defense When They Need it Most

If you are the target of a white-collar crime investigation or have been arrested and are facing charges, you must hire an experienced criminal defense attorney immediately. Insider trading is considered a white-collar crime prosecuted by federal authorities. Convictions for insider trading typically include stiff penalties, such as a jail or prison sentence and steep fines. Additionally, any white-collar crime conviction can result in a long-lasting negative impact on your personal and professional life.

Unfortunately, not all criminal defense lawyers have the knowledge and experience to defend white-collar crimes. Federal prosecutors have a high success rate, and defendants need an attorney unafraid to defend their rights.

Dallo Law understands that being charged with insider trading can be overwhelming, and you may be unsure where to turn for help. Our criminal defense law firm has extensive knowledge of the federal laws governing insider trading and knows what it takes to get results.

Contact Dallo Law at our Oakland County law offices today to learn how to schedule your initial consultation with our experienced attorney, who will professionally evaluate your case.

What is Considered Insider Trading?

Insider trading occurs when an individual has access to non-public information about a company’s securities, such as stocks and bonds, and illegally uses that knowledge to make a profit. Insider trading may involve buying or selling securities or recommending others do the same.

The main legal issue with insider trading is that it gives others an unfair advantage and can ultimately affect the value of stocks or bonds.

A typical example of insider trading includes company executives who have access to early earnings reports and then buy stocks at a lower price, knowing they will be worth more once the report becomes public knowledge. Conversely, the same situation may occur in reverse, where an executive learns that a report will reflect poorly on the company and drive stock prices down. If the executive sells their shares of stock before the report can be made public to avoid a loss, they could be charged with insider trading.

However, the Securities and Exchange Commission is overzealous in trying to prevent or prosecute white-collar crimes. You must obtain qualified legal representation who understands the legal intricacies of insider trading if you are being investigated or charged with a white-collar crime.

Who Prosecutes Insider Trading Crimes?

The federal government does not take financially motivated white-collar crimes lightly, especially insider trading. The Securities and Exchange Commission (SEC) and the FBI investigate and prosecute securities fraud or illegal activities in the securities industry. After the SEC and FBI agents have completed their investigation, the SEC and the Department of Justice (DOJ) work closely to prosecute white-collar crimes in federal court.

Some common securities fraud schemes that are pursued by the SEC and FBI include:

Market manipulation: The illegal process of making a stock or bond seem worth more than its value. Examples of market manipulation include pump and dump, where stocks are sold at inflated prices through false information or front-running, where a stockbroker or trader uses non-public information to make deals for their benefit.
Non-traditional pyramid schemes: Individuals with non-public information pass it to others who also pass it on, thus creating a chain or “pyramid” of individuals who profit from the illegal insider trading.
Commodities fraud: Using non-public information to buy or sell a commodity such as oil, metals, or agriculture to gain an unfair advantage over others to make a profit.
Prime investment fraud: Illegal trading programs that offer secret private investments to unknowing investors that offer a higher than average rate of return with minimal risk.
Ponzi schemes: A fraudulent investment scheme in which old investors are paid dividends from money obtained from new investors and not from legitimate securities.
Broker embezzlement: When stockbrokers or other financial professionals illegally use their client’s funds for their personal gain.

The above-listed white-collar crimes are only a few investigated and prosecuted by the federal government. Even if you suspect you may be under federal investigation by the SEC or FBI for securities fraud, do not hesitate to obtain qualified legal representation. The sooner you consult with our well-trained white-collar crime attorney, the sooner we can build a strong defense to fight the charges.

What is the Burden of Proof Needed to Convict Someone of Insider Trading?

Although white-collar crimes such as insider trading can result in severe penalties, the federal government must meet the burden of proof beyond a reasonable doubt in three critical legal components to obtain a conviction. The three legal components that must be met to prove insider trading include:

Confidential, non-public information was shared
The non-public information was “material.” Material means information that a typical investor would regard as important enough to change their investment decisions
The sharing of non-public material information resulted in the buying or selling of securities

Federal prosecutors must prove that all three legal components meet the burden of proof to demonstrate that a defendant intended to benefit from the confidential information. That being the case, attorneys can use several legal defense strategies to fight the charges.

Some of the most common defense strategies used to fight insider trading charges include:

Mosaic theory defense: A defense strategy that argues the defendant’s trading resulted from public knowledge and not insider information.
Challenging the admissibility of evidence: A skilled defense attorney with experience in white-collar crime cases can thoroughly assess the government’s case and argue that specific evidence should be excluded.
Negotiate a plea deal: Sometimes, a white-collar crime attorney can negotiate with the prosecutor to try and reach a plea deal. In a plea deal arrangement, a defendant agrees to plead guilty to lesser charges in exchange for a reduced sentence.

It is important to remember that not all white-collar cases are the same; therefore, any defense strategies that may be used will also vary based on the facts of the case. Hiring an attorney with significant experience is in your best interest if you have been accused of insider trading. J Dallo and his legal team will work diligently to create an innovative defense strategy to give you the best possible results.

What are the Legal Penalties for a White Collar Criminal Conviction?

The general public has a misconception that white-collar crimes are not that serious and that defendants are only ordered to pay fines. However, that could not be further from the truth. Depending on the circumstances, a defendant found guilty of a white-collar crime can be ordered to pay large fines or serve a lengthy prison sentence.

Some of the most common white-collar crime penalties that can result from a conviction include:

Prison: If the DOJ successfully proves its case, a defendant convicted of insider trading could be sentenced to up to 20 years for each count against them. However, the length of the prison sentence will depend on several factors, including the severity of the crime and gains from the insider trading violations.
Probation: A federal court could sentence a defendant to probation. However, there are several factors that the court will consider, such as the magnitude of the crime, input from victims if applicable, and any prior history of offenses. Just as with state probation, the defendant will have to follow strict guidelines to complete their sentence or risk being sent to prison for violations.
Fines: Defendants convicted of insider trading can be ordered to pay steep fines and up to five million for offenses. Corporations may be fined up to $25 million per violation.
Restitution: Federal courts often order defendants to pay restitution to victims, but each case will vary depending on the circumstances.

The judge can also order that a defendant’s professional license be suspended or revoked or not be permitted to serve in an executive position in a publicly traded company. Finally, aside from the vast legal implications, a white-collar crime conviction can severely damage your personal life and family relationships.

What are the Legal Advantages of Hiring an Insider Trading Attorney?

If you have been charged with insider trading, you need an attorney with significant experience handling cases in federal court. Not all criminal defense attorneys have the skill and experience in federal court that you need to win your case.

Dallo Law has extensive experience defending white-collar crime cases in federal court and will fight to win. J Dallo understands the legal intricacies involved with securities regulation and uses his knowledge to determine the strengths and weaknesses of the government’s case.

When you come to us for help, we have the legal and financial resources to conduct an independent investigation using forensic accounting to analyze and review trading logs and gather supporting documentation and sources of non-public information. Additionally, just as with every other criminal defense case, our legal team can interview witnesses and challenge the admissibility of the evidence to try and weaken the DOJ’s case.

Hiring a well-trained insider trading defense lawyer is one of the most essential steps to protect your rights, freedom, and personal reputation. Contact Dallo Law at our Oakland County law office by calling 248-290-9962 to learn how to schedule your initial consultation. Office visits are by appointment only; consultations are also available over the phone or via video conference.