Third Party Misrepresentation
Securities fraud is one of the most commonly charged white collar crimes in Florida and involves an investor making a sale or purchase on the stock market based on false information and in violation of securities laws. There are actually a number of different types of securities fraud, the most common of which include insider trading, fraud by a corporation, and third party misrepresentation. While insider trading and fraud by a company involve information provided by someone within a company itself, third party misrepresentation occurs when the perpetrator is not actually involved with the affected business, but spreads misinformation about a specific company in order to sell stocks at a higher price to the unwary. Unfortunately, hundreds of people are falsely accused of third party misrepresentation, which can result in a prison sentence and hefty fines. For help combatting your own securities fraud charges, please contact an experienced white collar crime lawyer who will aggressively represent your interests.
What is Third Party Misrepresentation?
Aside from insider trading and corporate fraud, the third most common type of securities fraud is third party misrepresentation, which occurs when a third party provides false information about the stock market at large, or about a specific company or industry to another person. In most cases, this happens when an investor discovers a relatively inexpensive investment and then purchases a significant number of shares or stocks, after which, he or she spreads false or misleading information about the value of the investment. Once other investors begin purchasing the stock and driving up the price, the original purchaser sells his or her shares for a profit. This is often referred to as a pump and dump scheme.
Consequences of Conviction
Securities fraud is criminalized under a number of state and federal laws, which means that defendants who are accused of securities fraud could face a variety of different charges. For this reason, retaining an experienced white collar crime attorney is critical for those who have been charged with securities fraud, as conviction comes with severe penalties, especially for those who are facing numerous charges. For instance, even a first time offender can be charged with a third degree felony, which could mean that he or she could be sentenced to five years in prison and be required to pay a fine of $5,000. However, if the value of the shares in question exceeds $50,000 and involved five or more victims, a charge can be enhanced to a first degree felony, which is punishable by a $10,000 fine and a 30 year prison sentence.
A White Collar Crime Attorney You Can Trust
If you or a loved one have been charged with securities fraud, dedicated Miami white collar crime lawyer Jeffrey S. Weiner, P.A. is here to help. To learn more about how our legal team can assist you, please call 305-670-9919 or complete one of our brief online contact forms. We are standing by to help you schedule a free case evaluation at your earliest convenience.