Securities fraud is a serious offense that falls within the broad category of white collar crime. Also referred to as stock or investment fraud, securities fraud involves deceptive practices dealing with stock and commodity markets.
Investment banks, corporations, brokerage firms, stockbrokers and securities dealers are subject to a complex web of both Federal and state regulations designed to protect investors and markets. When an individual or entity licensed to deal with securities misrepresents information investors use to make decisions, provides false information on corporate financial statements or securities filings, engages in insider trading or commit a host of other securities’ violations, the U. S. Securities and Exchange Commission (SEC) or State Securities’ Boards investigate allegations of securities fraud.
Illegal Acts Leading to Securities Investigations & Criminal Charges
State and federal securities investigations, examinations and criminal charges arise from a broad range of misrepresentation and schemes to defraud investors, such as:
- Providing false information
- Withholding key information
- Offering bad advice
- Offering or acting on inside information
- Ponzi schemes
- Pyramid schemes
- Prime bank note schemes
- Pump and dump schemes
- Advance fee schemes
- Stock manipulation schemes
- Front running
- Sale of unregistered securities
- Sale of securities by an unlicensed broker/dealer
- Stockbroker issues
Under the Texas Securities Act, the Texas Securities Board has the power to investigate and civilly prosecute anyone it suspects of selling unregistered sales of securities by unregistered dealers, and any alleged fraud in connection with the sale of securities in Texas. The Board has the power to stop someone from selling, revoke their securities license, levy fines and deregister the securities it alleges were sold fraudulently. And, if the Board suspects someone of criminal conduct, it refers the case to the Attorney General’s office for criminal prosecution.
The U. S. Securities and Exchange Commission (SEC) is charged with enforcing U.S. securities laws for investment products sold across state lines, which covers almost everything we normally think of when we hear the word “securities.” The SEC has the power to investigate and civilly prosecute anyone it suspects of a variety of violations including:
- Selling unregistered securities
- Making false statements or material omissions in connection with the sale of securities
- Insider trading
- Breach of fiduciary duty of brokers
- Failure to include material information in regular filings
- Failure to maintain accurate books and records
Texas State and Federal regulators have the power to destroy one’s business and reputation. If you are facing actual or potential prosecution by state or Federal securities regulators, you will need an experienced lawyer who knows the government regulatory bodies from the inside.
State and federal regulatory agencies such as the U.S. Securities and Exchange Commission and the state securities board can and will refer their findings to criminal prosecutions authorities, which can result in a criminal investigation and Indictment.
Contact an Experienced Criminal Defense Attorney
With more than 15 years as a state assistant attorney general, as a prosecutor for the SEC and the U.S. Attorney’s Office, attorney John Teakell has an insider’s perspective. He uses his knowledge of the system to give his clients every possible advantage and has a track record of positive results. He has helped his clients clear up their good names and has helped others get their charges and penalties dismissed or reduced.
Competent counsel is an absolute necessity for individuals or businesses that are the target of a Securities and Exchange Commission (“SEC”) or state investigation. Such an investigation or prosecution literally puts the target’s livelihood and reputation on the line.
If you are under investigation or have been charged with Federal or Texas State securities violations, contact the Law Office of John Teakell at (214) 523-9076 to arrange a confidential consultation to discuss your situation and explore available legal options.