Contact Stephanie Schuman,
Principal Counsel & Attorney-at-Law
212-933-9420

Securities Fraud

WHAT IS SECURITIES FRAUD?

Securities fraud involves making material false statements or omissions to induce investors in the securities and commodities markets to make financial investment decisions based upon those statements or omissions, often resulting in economic loss. Securities fraud is governed by 18 U.S.C. § 1348.

ELEMENTS OF SECURITIES FRAUD 

In every case of securities fraud, the prosecution must prove beyond a reasonable doubt that:

  1. Defendant misrepresented or omitted financial information to a buyer or seller of securities, and the misrepresentation or omission was material (that a reasonable buyer or seller would deem the information important); 
  2. Defendant knew their statements were false or deceptive; 
  3. Defendant's misrepresentation or omission caused the purchase or sale of securities; 
  4. The buyer or seller relied on Defendant's statements or omissions; 
  5. The buyer or seller suffered economic loss; and
  6. Defendant's misrepresentation or omission was a direct cause of that economic loss. 

PENALTIES FOR SECURITIES FRAUD 

Penalties for an individual convicted of securities fraud include fines and/or imprisonment of up to 25 years. 

POTENTIAL DEFENSES FOR SECURITIES FRAUD CHARGES 

GOOD FAITH. 

Defendant had a good faith belief that their statements were true. 

STATEMENTS WERE NOT FALSE OR DECEPTIVE.

The statements made by the Defendant were not false or deceptive. 

ABSENCE OF INTENT. 

Defendant did not have the intent to defraud. 

ENTRAPMENT. 

The criminal design originated with authorities and Defendant was not predisposed to engage in the criminal conduct. 

UNLAWFUL SEARCH AND SEIZURE. 

The court will suppress evidence obtained in violation of the Fourth Amendment of the United States Constitution. 

REASONABLE DOUBT. 

The attorneys at Leaf Legal, P.C. will challenge the sufficiency of the prosecution's evidence or create reasonable doubt as it pertains to any element of the securities fraud charge.

CONTACT LEAF LEGAL, P.C. 

If you or your company is facing federal securities fraud charges in the SDNY, EDNY, or anywhere else in the United States, you can contact us online or call us at 212-933-9420 to request a consultation. 

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