What Happens If I’m Found Guilty of Securities Fraud?

Keyboard and a small handcuffThe term securities fraud refers to activities that violate state and federal laws on trading, selling, and purchasing securities. Among the most common activities covered under securities fraud include churning, misrepresentation, insider trading, and accounting fraud. Being convicted of securities fraud could result in harsh penalties so make sure you hire a reputable white collar law firm in Houston, TX to help you with this charge. In general, you stand to face the following penalties for a securities fraud conviction:

Fines – The amount you’d need to pay would vary depending on the particular circumstances of your crime. Minor fraud charges could result in fines of $5,000 to $10,000. Violations like insider trading could get you fined up to $5,000,000.

Restitution – Since securities fraud usually involves clients, employees, investors, and others that suffered financial loss due to fraud, you would have to compensate them for their losses. You have to pay restitution along with associated fines as the court sees fit.

Imprisonment – Since securities fraud is prosecuted at the state and federal levels, you could face up to five years or more of prison time per offense. However, if you get a felony conviction, you could be going away to prison for 20 years or more. 

Probation – This is possible if you only committed one instance of securities fraud or if your crime did not result in monetary loss. This could last five years or more. You would need to follow all the conditions the court imposed, including paying restitution and fines, submitting to regular drug tests, and avoiding any criminal activity.

As you could see from the potential penalties listed above, federal and state laws consider securities fraud a severe offense, hence, the strict consequences. Once you learn that you’re being charged, suspected of, or investigated for securities fraud, seek help from an experienced criminal defense lawyer immediately to know what your best course of action is.