HOW A SEC CASE CAN BECOME A FEDERAL CRIMINAL INVESTIGATION
I. SEC Cases Generally The U.S. Securities and Exchange Commission (“SEC”) has the authority to investigate civil fraud and other related matters concerning “securities” as
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SEC Cases / State Securities Board
The U.S. Securities and Exchange Commission is a regulatory government agency that protects investors and maintains a fair and functioning securities market. It was created in response to the 1929 stock market crash that led to the Great Depression. They promote public disclosure, protect investors against fraudulent practices in the market, and monitor corporate takeovers in the United States. The SEC brings civil actions against those found in violation of SEC regulations, and assists law enforcement agencies in the procurement of evidence.
This agency may seek an injunction to have money returned and may bar individuals from holding certain positions of authority within the securities industry. Ultimately, they bring a lawsuit against anyone that violates securities laws and displays gross financial misconduct.
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Texas State Securities Board
The State Securities board was forged as a direct response to The Securities Act to protect investors. The act requires all securities and securities sellers to be registered, and requires the state board to monitor the securities industry. The sec enforces the stipulated regulations through legal action. Texas is one of the major securities markets in the United States, and the Texas State Security Board ensures that investors are protected and the securities market remains free and competitive.
SEC Investigations and Lawsuits
The State Securities board may bring forth administrative, civil, or criminal actions against individuals or firms they believe aren’t complying with SEC regulations.
The SEC conducts regular inspections to check for SEC regulation violations. The Texas State Securities Board reviews all registered securities for sale, and sellers in the state of Texas to make sure everyone is in compliance. All relevant securities information needs to be disclosed to the SEC or they will pursue you. Some common crimes the SEC investigates are insider trading, fraud, and money laundering.
Insider Trading
This practice involves trading a company’s public stock by someone who has non-public information. It is illegal to buy or sell a security based on this information. Insider Information is any intel that could affect a company’s stock value. This can include things like pending mergers, earnings reports, and new products. Insider trading is illegal because it gives certain individuals an unfair advantage on the market.
Fraud
There are several sub-categories under the category of fraud. The SEC frequently works with the FBI to investigate and indict people on alleged criminal conduct charges. White collar crimes like mail fraud, wire fraud, and bank fraud that facilitate securities fraud may be investigated by the SEC.
Money Laundering
Federal prosecutors may charge an individual with money laundering if they believe they’ve concealed and transferred criminal funds unlawfully. This crime can lead to decades in prison time. The money is generated illegally and passed off as legitimate.
Criminal Defense Attorney John R. Teakell Can Help
If you suspect the SEC is investigating you or your firm for securities fraud, contact the Law Office of John Teakell immediately. As a former state and federal prosecutor, he has the knowledge and experience you need to challenge evidence, find expert witnesses, and defend you in court.
White collar crime is common in Texas, and requires experienced legal representation. There are a range of defenses against white collar crime for individuals in the securities industry. As an experienced criminal defense attorney, John Teakell evaluates each case thoroughly to make a defense based on the facts. If you are facing white collar crime allegations from the State Securities Board, contact our office today.
