Federal Insider Trading Crimes

Federal Insider Trading: How Josh Tomsheck of Hofland & Tomsheck Can Defend You Against Federal Insider Trading Charges

Insider trading is a serious federal crime involving the buying or selling of securities based on nonpublic, material information about a company. The federal government aggressively prosecutes insider trading cases under the Securities Exchange Act of 1934 and related statutes. Convictions for insider trading can lead to significant prison sentences, hefty fines, and the forfeiture of any profits gained from the illegal trading.

If you or someone you know is facing federal insider trading charges, it is crucial to have an experienced attorney who understands the intricacies of securities law and can craft a strong defense. Josh Tomsheck, a former licensed securities broker and nationally Board-Certified criminal defense attorney with Hofland & Tomsheck, has successfully defended clients against federal insider trading charges. His knowledge of securities law and his commitment to his clients make him a trusted advocate in these complex cases.

Understanding Federal Insider Trading Laws

Federal insider trading laws are designed to prevent individuals from using nonpublic information to gain an unfair advantage in the stock market. Insider trading is prosecuted under several statutes, including:

• Securities Exchange Act of 1934 (15 U.S.C. § 78j(b)): Section 10(b) of the Securities Exchange Act of 1934 prohibits the use of any manipulative or deceptive device in connection with the purchase or sale of securities. Insider trading is considered a violation of this section when an individual uses nonpublic information to trade securities for personal gain.
• Rule 10b5: This rule, promulgated under the Securities Exchange Act, prohibits fraud or deceit in the sale of securities. Insider trading cases often rely on Rule 10b5 to prosecute individuals who use material, nonpublic information to engage in illegal securities transactions.
• Insider Trading and Securities Fraud Enforcement Act (ITSFEA) of 1988: The ITSFEA strengthened penalties for insider trading and gave the Securities and Exchange Commission (SEC) greater authority to investigate and prosecute these offenses.

Penalties for Federal Insider Trading Convictions

Federal insider trading convictions can result in severe penalties, including long prison sentences, significant fines, and the forfeiture of profits gained through illegal trading. The severity of the penalties depends on the amount of money involved, the defendant’s role in the scheme, and whether the defendant has prior securities violations.

• Imprisonment: Convictions for insider trading can result in prison sentences ranging from 5 to 20 years, depending on the scope of the illegal trading and the financial harm caused to investors or the market.
• Fines: Insider trading convictions can result in substantial fines, often in the range of hundreds of thousands to millions of dollars, depending on the profits gained from the illegal trading and the financial harm caused to others.
• Forfeiture of Profits: Defendants convicted of insider trading are typically required to forfeit any profits gained through the illegal trading, as well as any assets obtained with those profits.
• Disgorgement: In addition to forfeiture, the SEC may seek disgorgement, which requires the defendant to return any profits made from illegal trading to the SEC for distribution to harmed investors.

Common Defenses in Federal Insider Trading Cases

When defending against federal insider trading charges, Josh Tomsheck uses a variety of defense strategies tailored to the specifics of each case. Some common defenses include:

• Lack of Material, Nonpublic Information: A key element of insider trading is the use of material, nonpublic information. Josh Tomsheck can argue that the information used in the trade was either publicly available or not material to the company’s stock price, thereby challenging the prosecution’s case.
• No Intent to Defraud: Insider trading charges require proof of intent to defraud. Josh Tomsheck may argue that the defendant did not intend to deceive or manipulate the market, and that the trades were made in good faith based on publicly available information or legitimate investment strategies.
• Challenging the Evidence: Insider trading cases often rely on communications, financial records, and trading data. Josh Tomsheck will thoroughly review the evidence to determine if it was lawfully obtained and whether it supports the charges. He may file motions to suppress improperly obtained evidence or challenge the accuracy of the trading data.
• Trading Plans: In some cases, defendants may have had preexisting trading plans, such as 10b51 plans, which allow executives and insiders to sell stock at predetermined times, regardless of nonpublic information. Josh Tomsheck may argue that the trades were made pursuant to a lawful plan and were not based on insider information.
• Insufficient Proof of Insider Status: To be convicted of insider trading, the prosecution must prove that the defendant had access to material, nonpublic information as an insider. Josh Tomsheck may argue that the defendant did not have such access or was not a corporate insider with privileged information.

How Josh Tomsheck Can Help You in Federal Insider Trading Cases

Federal insider trading cases are complex and require an attorney with a deep understanding of both securities law and criminal law. Josh Tomsheck is an experienced, nationally Board-Certified criminal defense lawyer who has successfully defended clients against a wide range of federal securities violations, including insider trading.

Here’s why Josh Tomsheck is the best choice for your defense:

• Expertise in Federal Securities Law: Tomsheck’s knowledge of the Securities Exchange Act, Rule 10b5, and other federal securities laws allows him to build strong defense strategies tailored to the specific facts of each case. Josh Tomsheck is a former licensed securities broker with an undergraduate degree in finance and economics.
• Proven Track Record in Federal Court: Josh Tomsheck has extensive experience defending clients in federal court and has successfully secured reduced sentences, dismissals, and favorable outcomes in insider trading cases.
• Personalized Defense Strategy: Every case is different, and Josh Tomsheck takes the time to understand the specific facts and circumstances of each client’s case. He develops a personalized defense strategy aimed at minimizing penalties and protecting your rights.
• Aggressive Defense: Known for his dedication and tenacity, Josh Tomsheck will fight for you at every stage of the case, from pretrial motions to trial and sentencing. He is committed to securing the best possible outcome for his clients.

Contact Josh Tomsheck for a Consultation

If you or a loved one is facing federal insider trading charges, don’t wait to seek legal representation. Contact Josh Tomsheck at the Law Firm of Hofland & Tomsheck today for a consultation. With his experience, knowledge, and commitment to his clients, you can trust that your case is in capable hands.