Fraude federal de valores
Federal securities fraud is one of the most document-heavy and aggressively investigated white collar charges the government brings. By the time the FBI, the Securities and Exchange Commission, or a federal grand jury contacts you, investigators have often spent months or years reviewing trading records, emails, and financial statements. A securities fraud conviction under 18 U.S.C. 1348 carries up to 25 years in federal prison, and a parallel SEC enforcement action can take your money and bar you from the industry at the same time. If you are under investigation, the decisions you make now matter more than almost anything that happens later. Call (817) 203-2220 for a free, confidential consultation. We answer 24/7.
Former prosecutors. Board certified. Built for federal court. Our federal defense team includes Letty Martinez, a former Special Assistant U.S. Attorney (SAUSA) for the Northern District of Texas, and board certified criminal law specialists who have defended federal cases from the first subpoena through verdict. Securities cases turn on the details of intent and disclosure, and we have the resources to take apart the financial record the government is building against you. Learn more about our federal criminal defense practice and our work in the Northern District of Texas.
What Counts as Securities Fraud?
Securities fraud covers a wide range of conduct that shares one feature: deceiving investors or the market in connection with the purchase or sale of a security. A security includes stocks, bonds, investment contracts, and similar instruments. The theories federal prosecutors pursue most often include:
- Misrepresentation and omission. Making false statements, or hiding material facts, to get someone to buy or sell.
- Insider trading. Trading on material, nonpublic information in breach of a duty, or passing that information to someone who trades on it.
- Ponzi and pyramid schemes. Paying earlier investors with money from new investors instead of real returns.
- Pump and dump. Inflating a stock with false hype, then selling at the top.
- Accounting and disclosure fraud. Falsifying financial statements or misleading shareholders and regulators.
- Broker and investment adviser fraud. Churning accounts, unauthorized trading, or misusing client funds.
- Investment and cryptocurrency scams. Selling fraudulent investments, including digital asset offerings.
The Federal Securities Fraud Statutes
Prosecutors usually charge securities fraud under one or more of these laws:
- 18 U.S.C. 1348 (securities and commodities fraud). A broad statute created by the Sarbanes-Oxley Act in 2002 that makes it a crime to knowingly carry out a scheme to defraud in connection with a registered security. It carries up to 25 years in prison.
- 15 U.S.C. 78j(b) and SEC Rule 10b-5. The core antifraud rule of the Securities Exchange Act. It bars any manipulative or deceptive device in connection with the purchase or sale of a security and is the foundation of most insider trading and misrepresentation cases.
- Securities Act of 1933 antifraud provision (15 U.S.C. 77q). Prohibits fraud in the offer or sale of securities.
- Mail fraud and wire fraud. Almost every securities case also charges mail or wire fraud, because the scheme used phones, email, or the banking system. See our federal wire fraud and mail fraud pages.
- Conspiracy and attempt (18 U.S.C. 1349). You can be charged for agreeing to a scheme even if it never paid off.
- Money laundering. Moving the proceeds of fraud often adds separate charges. See our federal money laundering page.
Penalties for Federal Securities Fraud
The penalties are severe, and they stack on top of each other.
- Prison. Up to 25 years under 18 U.S.C. 1348. Willful violations of the Securities Exchange Act under 15 U.S.C. 78ff carry up to 20 years and a fine up to 5 million dollars for an individual, or up to 25 million dollars for a company.
- Restitution and forfeiture. Courts routinely order repayment to victims and forfeiture of money and property traceable to the fraud.
- SEC civil penalties. Separate from the criminal case, the SEC can seek disgorgement of gains, civil money penalties, and officer-and-director bars that end a career.
- Guideline exposure. Under the federal sentencing guidelines, your exposure climbs sharply with the dollar loss, the number of victims, and your role. Challenging the government loss calculation is often the most important work in the whole case. Learn what to expect at a federal sentencing hearing.
The SEC and the Justice Department Often Investigate at the Same Time
Securities fraud is unusual because two arms of the government can pursue you at once. The SEC handles civil enforcement and may issue subpoenas, take sworn testimony, and send a Wells notice signaling that it intends to sue. The Department of Justice handles criminal charges through a U.S. Attorney office and a grand jury. What you say to the SEC can be used against you in the criminal case. Coordinating a defense across both tracks, and deciding when to speak and when to stay silent, is something you should not do without an experienced federal lawyer. If you have received a federal target letter or a subpoena, talk to us before you respond.
How Long Does the Government Have to Charge You?
Most securities fraud offenses carry a six-year statute of limitations under 18 U.S.C. 3301, longer than the five-year limit that applies to many federal crimes. That extra time lets investigators build detailed, document-driven cases, which is one more reason to get ahead of an investigation early.
Defending a Federal Securities Fraud Case
Securities fraud is a specific-intent crime. The government has to prove you acted knowingly and with intent to defraud, not that you made a mistake or a bad business call. Real defenses include:
- No intent to defraud. Good faith, honest belief, and the absence of intent defeat the charge.
- No material misrepresentation. Optimistic projections and opinion are not the same as a false statement of material fact.
- Reliance on professionals. Good-faith reliance on lawyers or accountants can negate intent.
- Challenging the loss amount. Even where some liability exists, cutting the government loss figure can sharply reduce the sentence.
- Limitations and constitutional challenges. Stale charges and unlawful searches can be litigated and won.
Federal vs. Texas State Securities Charges
Most large securities cases are federal, but Texas also prosecutes securities fraud under the Texas Securities Act, now codified in the Texas Government Code. State and federal authorities sometimes investigate the same conduct, and in some situations you can face charges from both. The right strategy depends on which sovereign brings the case. We handle securities matters on both sides.
Talk to a Federal Securities Fraud Lawyer
If you are under investigation or have been charged with securities fraud, the government already has a head start, and you need to close the gap fast. Our federal criminal defense lawyers offer free, confidential consultations. Call (817) 203-2220. We answer 24/7. If your case is in the Fort Worth Division, see our Fort Worth federal criminal defense lawyer page.