Federal Securities Fraud Attorney

Types of Federal Securities Fraud We Defend

Insider Trading (15 U.S.C. § 78j(b))

Insider trading involves buying or selling securities based on material, non-public information. This includes traditional insider trading, tipping others with inside information, and trading on misappropriated information. Criminal Penalties: Up to 20 years in prison and $5 million fine Civil Penalties: Disgorgement plus penalties up to three times ill-gotten gains

Investment Adviser Fraud

Investment adviser fraud encompasses various schemes by registered and unregistered investment advisers, including misrepresentation of investment strategies, unauthorized trading, excessive fees, and misuse of client funds. Criminal Penalties: Up to 5 years in prison per count and substantial fines Civil Consequences: SEC enforcement actions, industry bars, and client restitution

Ponzi Schemes and Pyramid Schemes

Ponzi schemes use new investor money to pay earlier investors, creating the illusion of legitimate returns. These schemes inevitably collapse and result in massive investor losses and severe criminal penalties. Criminal Penalties: Up to 20 years in prison per count and complete asset forfeiture Restitution: Full investor losses, often in the millions or billions

Securities Offering Fraud

Securities offering fraud involves misrepresentations in connection with the sale of securities, including unregistered securities offerings, fraudulent private placements, and pump-and-dump schemes. Criminal Penalties: Up to 25 years in prison and $5 million fine Civil Penalties: Injunctive relief, disgorgement, and industry bars

Accounting Fraud and Financial Statement Manipulation

Corporate accounting fraud involves manipulation of financial statements to deceive investors, including revenue recognition fraud, expense manipulation, and off-balance-sheet transactions. Criminal Penalties: Up to 25 years in prison under Sarbanes-Oxley Act Corporate Consequences: Massive fines, debarment, and dissolution

Market Manipulation

Market manipulation includes spoofing, layering, wash trades, and other schemes designed to artificially influence securities prices or create false market activity. Criminal Penalties: Up to 25 years in prison and $5 million fine CFTC Penalties: Additional civil monetary penalties and trading bans

Broker-Dealer Fraud

Broker-dealer fraud encompasses churning, unauthorized trading, selling away, failure to supervise, and other violations of fiduciary duties to customers. Criminal Penalties: Up to 20 years in prison and substantial fines FINRA Consequences: Industry bars and customer restitution orders

Federal Securities Fraud Penalties and Consequences

ENHANCED PENALTIES UNDER FEDERAL SENTENCING GUIDELINES Securities fraud sentences are significantly enhanced based on loss amount, number of victims, leadership role, sophisticated means, and abuse of trust. Sentences can exceed 20 years even for first-time offenders.

PARALLEL PROCEEDINGS WARNING Securities fraud cases often involve simultaneous criminal prosecution, SEC civil enforcement, FINRA disciplinary proceedings, and private civil litigation, each requiring specialized defense strategies.

SEC Investigation Defense Process

1. Initial SEC Contact and Wells Process

When the SEC begins investigating, we immediately assess the scope of the inquiry, advise on document preservation, and prepare for potential Wells notice proceedings. Early intervention can sometimes prevent formal charges.

2. Document Production and Testimony Preparation

SEC investigations involve extensive document requests and witness testimony. We work to limit the scope of production, assert applicable privileges, and prepare clients for SEC depositions and testimony.

3. Wells Notice Response and Settlement Negotiations

If the SEC staff recommends enforcement action, we prepare comprehensive Wells submissions presenting legal and factual defenses, and negotiate potential settlement terms to minimize penalties and consequences.

4. Parallel Criminal Defense Coordination

When DOJ becomes involved, we coordinate defense strategies across both civil and criminal proceedings, managing privilege issues and ensuring consistent positions while protecting Fifth Amendment rights.

5. Federal Court Litigation and Trial

If charges are filed, we aggressively litigate all aspects of the case, from challenging search warrants and evidence to presenting complex defenses at trial involving financial markets and securities regulations.

6. Sentencing and Asset Recovery

In the event of conviction, we present comprehensive mitigation evidence and challenge loss calculations to minimize sentences, while working to protect assets from forfeiture and preserve family financial security.

Why Choose Adams Defense Law for Securities Fraud Defense

Securities fraud defense requires attorneys who understand complex financial markets, federal securities regulations, SEC enforcement procedures, and federal criminal law. Our comprehensive approach includes:

• Securities Law Expertise: Deep understanding of federal securities laws, regulations, and industry practices
• SEC Experience: Extensive experience with SEC investigations, Wells proceedings, and enforcement actions
• Federal Court Experience: Proven track record in federal securities fraud trials and appeals
• Financial Markets Knowledge: Understanding of trading systems, market microstructure, and investment strategies
• Expert Witness Network: Access to securities experts, forensic accountants, and financial market specialists
• Parallel Proceedings Management: Coordination of criminal, civil, and regulatory defense strategies
• Asset Protection: Strategies to protect client assets from forfeiture and civil judgments
• 24/7 Availability: Immediate response for SEC investigations and federal arrests

Common Securities Fraud Defense Strategies

Lack of Intent to Defraud

Securities fraud requires proof of specific intent to deceive or defraud investors. We challenge the government’s ability to prove intent through expert testimony and evidence of good faith business decisions.

Reliance on Professional Advice

Defendants who reasonably relied on advice from qualified professionals may have valid defenses. We present evidence of reliance on attorneys, accountants, and other professionals.

Challenging Loss Calculations

Federal sentences depend heavily on loss amounts. We challenge the government’s loss calculations through expert testimony and alternative theories of causation and market factors.

Statute of Limitations Defenses

Securities fraud charges must generally be brought within five years of the violation. We carefully analyze timing issues and assert applicable limitations defenses.

Constitutional Challenges

We challenge unconstitutional searches, violations of Miranda rights, and other constitutional violations that may require suppression of critical evidence.

Cooperation and Plea Negotiations

When appropriate, we negotiate cooperation agreements and plea deals that minimize exposure while protecting our clients’ long-term interests.

Our Offices: Defending Securities Fraud Cases Nationwide

Chicago Securities Fraud Defense

Our Chicago office defends securities fraud cases in the Northern District of Illinois, including cases prosecuted by the Chicago U.S. Attorney’s Office and investigated by the SEC’s Chicago Regional Office. We handle cases involving Chicago-based investment advisers, broker-dealers, and corporate executives.

New York Securities Fraud Defense

New York is the center of securities fraud prosecutions, with cases handled by the Southern and Eastern Districts of New York. Our NYC practice focuses on Wall Street prosecutions, including insider trading, market manipulation, and investment adviser fraud cases investigated by the SEC’s New York Regional Office.

Kansas City Securities Fraud Defense

Our Kansas City office provides securities fraud defense throughout the Midwest, handling cases in the Western District of Missouri and surrounding federal districts. We defend regional investment advisers, broker-dealers, and corporate clients facing SEC investigations and criminal charges.

IMMEDIATE RESPONSE REQUIRED SEC investigations and criminal securities fraud cases develop rapidly. The sooner we begin your defense, the better we can protect your rights, assets, and freedom.

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Understanding SEC Enforcement Actions

The SEC has broad enforcement powers including:

• Cease and Desist Orders: Requiring cessation of violative conduct
• Civil Money Penalties: Substantial financial penalties based on violation severity
• Disgorgement: Recovery of ill-gotten gains from securities violations
• Industry Bars: Permanent or temporary bars from securities industry
• Injunctive Relief: Court orders preventing future violations
• Asset Freezes: Emergency relief to preserve assets for investor recovery

Federal Securities Fraud Statutes and Regulations

Securities Act of 1933

Regulates initial offerings of securities and prohibits fraud in connection with securities sales.

Securities Exchange Act of 1934

Governs trading of securities and includes the primary anti-fraud provisions for secondary market transactions.

Investment Advisers Act of 1940

Regulates investment advisers and establishes fiduciary duties to clients.

Investment Company Act of 1940

Regulates mutual funds and other investment companies.

Sarbanes-Oxley Act of 2002

Enhanced penalties for corporate fraud and established new corporate governance requirements.

Dodd-Frank Act

Expanded SEC enforcement authority and established whistleblower programs.

Call (312) 566-9173 for immediate securities fraud defense consultation. Available 24/7 for SEC investigations and federal arrests.