Conduct considered to be insider trading can carry civil penalties in the form of damages, as well as criminal penalties such as a term of imprisonment. Insider trading is a federal offense usually investigated by the Securities and Exchange Commission, commonly known as the SEC. Federal courts have generally considered insider trading to be the buying or selling of securities based on information concerning those securities not known to the public. This information is often obtained through a relationship of confidence the person has within a company known as a fiduciary duty.

Many people regularly face imprisonment for insider trading, and if you are under investigation or face charges, you should contact Anand Law Group, P.C., for help from an insider trading lawyer in Los Angeles.

Insider Trading Charges and Penalties

There are times when insider trading isn’t considered a crime. This is typically seen when employees, shareholders, and other company personnel trade stock within their own companies, without using private confidential information. However, these transactions are required to be filed with the SEC.

To be convicted of insider trading, the prosecutor must show beyond a reasonable doubt that these four elements exist:

1. The defendant bought or sold securities;
2. The defendant’s actions were based on some private information;
3. The information was not known to the public; and
4. The information was material.

Information will be considered material where it can be shown that a reasonable investor would consider such information when deciding whether to trade securities.

A conviction of insider trading can lead to up to 20 years in federal prison, as well as millions of dollars in fines for individuals or corporations.

Seek Help from a Federal Insider Trading Lawyer in Los Angeles

If you’ve been charged with the crime of insider trading by the United States Department of Justice, our Los Angeles insider trading attorney at Anand Law Group, P.C., can help you by passionately advocating to protect your rights. Attorney Harv Anand understands what the prosecution must prove and the best strategies to defend yourself. Contact us for your free consultation today.