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Insider Trading Lawyers

If you or someone you know has been accused of insider trading, it is in your best interest to retain the services of an insider trading lawyer in order to avoid unfavorable judgments.

It’s not uncommon for insider trading headlines to splash across national news every now and then. But company owners, executives, or professional advisors being accused of insider trading outside the public eye is more common than many think. The first step is to understand what the law allows and doesn’t allow, as well as understand the insider trading violations and defenses important to your case.

What Is Insider Trading?

Although one specific definition of insider trading does not exist, four main areas of insider trading are widely recognized.

  1. It is a breach of fiduciary duty or violating the trust of someone in connection with a purchase or sale.
  2. It is the use of material or nonpublic information used for purchase or sale.
  3. It is knowing or reckless use of material that is public information when trading.
  4. It is a personal benefit from an unlawful trade, either as a direct profit or in tipping off someone who has benefitted.

Essentially, insider trading occurs when someone receives investment information that is unavailable to the public and buys or sells based on said information.

Retain the Services of an Insider Trading Lawyer

Unfortunately, someone facing insider trading accusations may face parallel lawsuits from both the SEC, or Securities Exchange Commission, and the U.S. Attorney’s office. This could pose a challenge for both you and your insider trading lawyer, but an expert insider trader lawyer will be more familiar with the process for handling your legal situation. Our team of lawyers is confident in handling both state and federal level cases and will answer any questions you may have as straightforward and honestly as possible. The first clue that you or your company may be under investigation for insider trading is initial contact in the form of a phone call or a visit from an attorney representing the SEC. Initially, this attorney will ask questions about trading activities. Answering these questions is voluntary at this point, and it is highly advisable not to answer any questions without your lawyer present. Any questions you may answer could be misconstrued and used against you in a court of law. The best course of action is to decline to answer any questions and immediately contact an experienced insider trading lawyer to reschedule the interview when you have proper representation working in your best interest.

Penalties for Insider Trading

In recent years, the sentences handed out for insider trading have significantly increased since a new wave of crackdowns has occurred. Penalties for insider trading commonly include jail time and/or hefty fines. But with this sudden surge of harsher sentencing, prosecution attorneys for insider trading have also tried to get those convicted barred from serving as executives of any publicly traded company. Harsher penalties may also extend down to those who passed along insider trading information for the use of another's personal gains as well. With harsher penalties being doled out for insider trading convictions, you will want to ensure you have a highly qualified insider trading lawyer on your side to fight on your behalf. An insider trading lawyer with extensive experience and knowledge of the law will be able to guide you and evaluate your case to craft the best possible defense. For instance, an insider trading lawyer can and will assess what your trading company does and what motivates them, assess any knowledge of nonpublic trading information known prior to trading, analyze trade motivation decisions such as the use of non-illegal newspaper or articles or stock copies, and request a copy of a Formal Order, if one has been issued by the SEC, to review and prepare before you are questioned.

Insider Trading Defenses

It’s quite clear that the definition of insider trader is very broad. Therefore, defenses for insider trading will vary on a case-by-case basis. There are a number of potential defenses available that include a lack of knowledge that material was confidential, corporate disclosure prior to use of the material in question, lack of possession of material or its nonpublic knowledge, a mosaic defense that relies on multiple pieces of immaterial information instead of a single piece of material, or reliance on the advice of counsel. Because an insider trading case can be so individualized, it’s best to retain the services of an insider trading lawyer that can help create a defense to receive the most positive outcome possible. Our insider trading lawyers have years of experience and knowledge of the legal system that will allow them to work on your behalf for the best verdict in your case.

An Insider Trading Lawyer Is On Your Side

The most important step you could take when contacted by the SEC or the Attorney General’s office is to retain the services of an insider trading lawyer to work on your behalf. Early intervention is critical to ensure the government doesn’t take advantage of your willingness to cooperate. An insider trading lawyer will also help to protect your freedom first and foremost, as well as your assets and your future. At Lowther Walker, LLC, we are experts in insider trading laws and have a great deal of experience handling cases like yours. We can and will fight for you on both a state and federal level and act on your behalf to counteract any measures taken against you and work toward a positive outcome. When the government comes after you for insider trading, you will need someone in your corner. Contact our office today to speak with one of our insider trading lawyers who will answer any questions you may have or get the help you need in the wake of an insider trading investigation or formal charges.

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