When Do You Need A Stock Fraud Attorney

When you think stock fraud you probably think Martha Stewart who became more famous for her stint in prison on stock fraud charges than her home making skills that launched her into fame and fortune in the first place. Martha brought stock fraud into our homes and made all of us aware of this crime that up until recently was buried in back pages of the business section- not on the front pages of the news.

Stock fraud also known as securities fraud or investment fraud is considered a white collar crime and as such the “victim” of the crime may not be so easy to identify as a victim of a criminal offense such as murder or rape. Even investigating stock fraud is a complex issue and generally falls to the skills and training of specialist in the FBI and the SEC to investigate claims of stock fraud.
Stock fraud is classifies as the act of luring investors to buy stock or invest in a company based on fraudulent claims about the company or the stock. Security fraud is generally the type of fraud committed by a broker or dealer by giving their client false information about a stock. There are four types of security fraud in this classification including churning, unsuitability, and misrepresentation and over concentration.

Because each of these by definition relies on a dealer purposefully giving a client false and misleading information the burden falls on the prosecution to prove that the dealer did in fact know they were not acting in the best interest of their client and were giving false information.

If you are being charged with stock fraud you probably already know it’s complicated. And because it is complicated you need a stock fraud attorney who can help you untangle the mess.

A stock fraud attorney can work in your defense to help show that you thought you were acting on the best interest of your client and that you thought you were giving good financial advice. If your attorney can prove these claims, the charges won’t stand against you.

The time to call on your attorney is when you realize you are under investigation by the FBI or SEC. Because any investigation into stock fraud is going to be complex and lengthy you should be well aware that you are under investigation well in advance of an arrest. If you suspect you are being investigated you should consult with a stock fraud attorney who can help you protect your rights and begin to work on your defense long before you face criminal charges.