Insider trading is the buying or selling of a security by someone who has access to material, nonpublic information about the security. In the United States, it is illegal when it involves securities listed on a national exchange such as the New York Stock Exchange (NYSE) or the Nasdaq. The SEC and the Department of Justice (DOJ) investigate and prosecute cases.
It is considered to be a very serious crime because it undermines the fairness and integrity of the stock market. When insiders trade stocks based on information that is not available to the general public, they are essentially stealing from other investors who don’t have access to the same information. This can cause serious financial damage to innocent people, and it also erodes public confidence in the stock market.
There are three types: illegal, improper, and legal. Illegal is when someone uses material nonpublic information to trade stocks. Improper is when someone trades stocks while in possession of inside information, but does not use the information to make a profit. Legal is when someone trades stocks while in possession of inside information, but does not use the information to make a profit and also does not disclose the information to anyone else.
The penalties can be civil or criminal. Civil penalties can include fines, disgorgement of ill-gotten gains, and a ban from serving as an officer or director of a public company. Criminal penalties can include imprisonment and fines.
This is a serious offense that can lead to severe penalties. If you are convicted of illegal trading, you could face fines, imprisonment, and a ban from serving as an officer or director of a public company.
If convicted in Florida, a person faces a maximum punishment of five years in prison and a $5,000 fine. However, the punishment is often more severe, with some people serving time in prison and others paying significant fines. Additionally, a conviction can place a permanent stain on your integrity and opportunity for future business dealings. The Law Offices of Patrick McKamey can help you fight any charges and provide the best defense possible.
If you are facing insider trading charges, you have options. It is important to have an experienced and aggressive lawyer on your side. The Law Offices of Patrick McKamey has successfully represented many clients facing charges and won significant cases. We will thoroughly investigate the allegations against you and develop a strong defense strategy so you can be confident if and when you are to appear in court.
We understand that being charged with a crime can be a stressful and overwhelming experience. We will guide you through every step of the legal process and fight to get the best possible outcome in your case.
The Law Offices of Patrick McKamey is the best insider trading lawyer in West Palm Beach. We have experience handling these types of cases and can earn you the best possible outcome. When being charged, it is important to have a strong legal defense. This is because illegal trading is a very serious charge, and can result in significant penalties, including jail time.
A strong insider trading lawyer can help to minimize the consequences of being charged with illegal trading and may be able to get the charge dismissed altogether. Contact our West Palm Beach office today for a free consultation. Let us put our experience to work for you.