Many people invest in the stock market as a way of creating a healthy retirement fund or of financing future plans. When the market is going well, the returns can be great, and the investor can get a lot of satisfaction out of knowing that he or she invested wisely. There are a variety of honest brokerage firms that offer products like mutual funds, exchange-traded funds, stocks and bonds that help money grow over the years and offer investors a real chance at financial security. However, there are also a lot of con artists who are out to promote their own agenda with little concern for the investor in mind. The SEC, or Securities and Exchange Commission, prosecutes this type of fraud and is vigilant in investigating those who are suspected of committing it. If you’ve been charged with securities fraud, it’s time to learn about how a California securities fraud defense lawyer can protect your rights.
Insider Trading and Third Party Misrepresentation
Two common types of securities fraud are insider trading and third party misrepresentation. Insider trading occurs when someone has inside knowledge of a company’s financial status even before this knowledge is disclosed to the public. This knowledge is then used to make decisions about buying or selling that company’s stock. For example, an employee of a company may notice that the company is losing money, so he decides to sell all his stock in the company without notifying any of the relevant parties. This is insider trading.
Third party misrepresentation occurs when someone gives out false information to others about the value of a company’s stock. For example, someone may buy a large amount of some cheap stock and then send out a thousand or more emails about how this stock is going to make people rich. The goal here is to get people to buy the stock and drive up the price, so that this third party can then sell all the stock at a profit. This is sometimes called “pump and dump”.
How Securities Fraud is Proven
Securities fraud isn’t always easy to prove, which is why so many people get away with it. To prove securities fraud, the client wishing to prove that he has been swindled must be able to show that someone in the securities industry deliberately or recklessly either misrepresented or omitted some material information in order to sell him some stocks. The client must be able to show somehow that the broker or third party knew that what he was saying about the stock was untrue, and as a result, the client lost money. An angry client who lost money on the purchase of a stock may make accusations that are not fully valid. That is why, if you’ve been accused of securities fraud, you need a skilled securities fraud defense lawyer on your side.
Call to Schedule a Free Consultation With a Securities Fraud Defense Lawyer Today
If you’ve been charged with securities fraud, call to schedule a free consultation with a securities fraud defense lawyer today. The legal professionals at the law offices of John D. Kirby have over forty years of experience and understand the complex world of securities law. We’ll fight hard to defend your rights and protect your reputation. We serve San Diego, La Jolla, Coronado, Carlsbad, La Mesa, Del Mar, San Marcos, Solana Beach and surrounding San Diego County communities. Call us at 619-557-0100 and let us give you reliable legal representation.
