You don’t have to be a high roller like Bernie Madoff or Martha Stewart to be charged with insider trading in Houston. Anyone that has inside information about a publicly traded company should be aware of the potential penalties for profiting from unethical stock trading.
Stock Market Securities
Wall Street investors make millions of stock, bond and security trades every day. The key to whether an investor can legally act on inside information is whether or not the stock buying public has access to the same information. Taking advantage of insider information is unfair to other investors.
Who doesn’t remember the infamous Enron debacle? The suppression of vital information and illegal insider trading practices ended up costing average investors millions of dollars. Even sharing a tip with an outside investor can result in criminal charges for both the insider and the individual that profited from the information.
Corporate directors aren’t the only insiders that can get in trouble for participating in an unethical stock trading scheme. Any one that takes advantage of inside information can be charged with violating securities trading laws. The Securities and Exchange Commission (SEC) does require corporate insiders to report their trades. Any of the following actors could be prosecuted for profiting from special information:
- Brokerage firm employees
- Friends and family members
- Directors and officers
- Corporate employees
- Law firm employees
- Government agency employees
Houston Insider Trading Penalties
Illegal trading scams are regularly investigated and prosecuted by the FBI and SEC in Texas. If you’ve become the subject of an unethical trading investigation, you should take legal precautions. Aside from substantial financial penalties, a federal prison sentence is a definite possibility. That’s what happened to the top corporate officials of Enron.
Insider Information Defense Lawyer
Many illegal trading defendants are ultimately convicted of making false statements in Texas. The laws that govern publicly traded companies are extremely difficult to interpret.
Mounting a successful defense against federal stock trading charges will require the assistance of an attorney with experience in that unique legal arena. The SEC and FBI have access to enormous legal and financial resources. Moreover, federal investigators have already amassed significant evidence by the time a suspect is notified of an ongoing investigation.