With the continued crackdown on financial fraud offenses, accusations of insider trading can potentially result in severe consequences.
What is Insider Trading?
Insider trading is when a person uses knowledge that is not available to the public in order to gain advantage in trading stocks. This knowledge may be legitimately obtained; for example, an employee or contractor may, in the course of his or her duties, become privy to certain knowledge in advance of the general public.
In other cases, the knowledge is obtained through illegitimate means, such accessing a computer system without authorization, or bribing an employee or other insider to divulge knowledge. In either case, when the knowledge is used to obtain a trading advantage, accusations of insider trading may follow and result in criminal charges.
Who are the most commong targets?
The most common targets of insider trading are financial sector professionals such as portfolio managers, analysts, and brokers.
In some cases, it is alleged that not merely did the defendants engage in insider trading, but that they actually participated in a systematic scheme of insider trading; this can be the case when there was an entire system set up where professionals such as analysts conspired with employees of public companies to receive insider information form them in order to gain an advantage in trading. All participants in such schemes can be charged in connection with insider trading.
What are the charges of Insider Trading?
Persons accused of insider trading can expect to get charged with securities fraud, as well as conspiracy to commit securities fraud if there were other participants in the insider trading scheme. A conviction can result in several years of imprisonment, as well as fines numbering in the millions of dollars.
If you are being investigated or prosecuted based on allegations of insider trading, you should consult an experienced defense attorney with extensive expertise both in criminal defense and in finance issues.
Call our experienced New York criminal defense lawyers at (212) 577-6677 to schedule an immediate consultation.
