Federal Securities Fraud

Federal Securities Fraud Defense with Attorney Josh Tomsheck and Hofland & Tomsheck

Securities fraud is a complex financial crime that can carry severe penalties. It involves deceptive practices in the securities markets, where individuals or entities manipulate or mislead investors to achieve financial gain. Being charged with securities fraud can result in long prison sentences, steep fines, and irreparable harm to your professional and personal life.

At Hofland & Tomsheck, Josh Tomsheck, a nationally board-certified criminal defense attorney, offers top-tier legal representation to individuals facing securities fraud charges. With deep experience in federal financial crime defense, Josh develops personalized strategies to defend your rights and your future.

Related or Similar Offenses

Securities fraud is often prosecuted alongside other serious federal charges. These crimes frequently overlap due to the nature of fraudulent financial schemes. Here are some of the most common related offenses, each carrying its own set of penalties:

• Wire Fraud (18 U.S.C. § 1343): Wire fraud occurs when electronic communications such as phone calls, emails, or the internet are used to facilitate a fraudulent scheme. Wire fraud is commonly charged alongside securities fraud when digital platforms or communication methods are used to mislead investors or manipulate stock prices.
• Mail Fraud (18 U.S.C. § 1341): Similar to wire fraud, mail fraud involves the use of postal services or commercial carriers (such as UPS or FedEx) to execute a fraudulent plan. If a company sends out misleading statements, financial documents, or other fraudulent information by mail, this statute may apply.
• Money Laundering (18 U.S.C. § 1956 and 1957): Money laundering charges are often brought when individuals attempt to hide or “clean” the proceeds of securities fraud through a series of complex financial transactions. This offense can add substantial prison time and fines if combined with securities fraud.
• Bank Fraud (18 U.S.C. § 1344): In cases where fraudulent securities activities involve banks, such as manipulating loans or mortgages based on false investment documents, bank fraud charges may apply.
• Conspiracy to Commit Fraud (18 U.S.C. § 371): When two or more individuals collaborate in a fraudulent securities scheme, conspiracy charges may be added to the case. Prosecutors can pursue conspiracy charges even if the fraudulent acts themselves were incomplete or unsuccessful.

These related offenses often result in compounded penalties, with each charge carrying its own maximum sentence and fine. If you’re facing multiple charges, it is crucial to have a skilled defense team to manage the complexities of your case.

What is Securities Fraud?

Securities fraud involves intentionally misleading investors or manipulating the market to achieve financial benefits at the expense of others. It is prosecuted under federal laws like the Securities Exchange Act of 1934 and 18 U.S.C. § 1348. These laws govern the transparency and legality of transactions related to stocks, bonds, and other investment vehicles.

A key component of securities fraud is the intent to deceive. Fraudulent actions could include providing false information, omitting critical facts, or engaging in insider trading—any act designed to manipulate market prices or mislead investors. While securities fraud can be committed by individuals, companies, or brokers, the central goal is always the same: financial gain through deceptive practices.

Essential Elements of Securities Fraud

To secure a conviction for securities fraud, federal prosecutors must prove several elements beyond a reasonable doubt:

1. Fraudulent Conduct: This involves actions such as providing false information, omitting material facts, or manipulating stock prices.
2. Material Misrepresentation or Omission: The fraudulent conduct must involve significant information that would influence an investor’s decision.
3. Intent to Defraud: Prosecutors must show that the defendant knowingly and intentionally misled or deceived investors.
4. Reliance and Financial Loss: The fraudulent conduct must lead to investors relying on the misleading information, resulting in financial losses.

Securities fraud cases are often intricate and require extensive documentation, making it vital to have experienced legal counsel who can carefully dissect the prosecution’s claims.

Types of Securities Fraud

Securities fraud covers a broad spectrum of illegal activities within financial markets. Some of the most common types of securities fraud include:

• Insider Trading: This occurs when individuals with access to non-public information about a company use that information to trade stocks or securities, gaining an unfair advantage. Insider trading is illegal because it undermines market fairness and transparency.
• Market Manipulation: Also known as “pump and dump” schemes, this involves artificially inflating the price of a stock through false or misleading statements, then selling shares at the inflated price. Once the price crashes, unsuspecting investors are left with significant losses.
• Ponzi Schemes: These are fraudulent investment operations where returns to earlier investors are paid using the capital of newer investors, rather than legitimate profits. Ponzi schemes eventually collapse when there are not enough new investors to support payouts.
• Misrepresentation in Financial Statements: Corporate executives or brokers may falsify financial reports, making the company appear more profitable or stable than it actually is. This misleads investors into making decisions based on false information.
• Broker Misconduct: Brokers and financial advisors are bound by a duty of care to their clients. When they make unauthorized trades, recommend unsuitable investments, or act in their own interest at the expense of the client, they can be charged with securities fraud.

Penalties for Securities Fraud

A conviction for securities fraud carries severe penalties, especially in cases involving widespread harm to investors or significant financial losses. The penalties for securities fraud may include:

• Imprisonment: Convictions for securities fraud can lead to a prison sentence of up to 25 years. Sentences can be extended when additional offenses, such as money laundering or conspiracy, are involved.
• Fines: The fines for securities fraud can be substantial. Individuals convicted may face fines of millions of dollars, while companies involved in fraudulent schemes may face even higher penalties.
• Restitution: Courts often order defendants to pay restitution, reimbursing victims for financial losses caused by the fraud.
• Asset Forfeiture: Defendants may be forced to forfeit assets gained from fraudulent activities, such as real estate, vehicles, or investments.
• Industry Bans: Convicted individuals can be permanently barred from serving in positions of trust within publicly traded companies or in the securities industry.

Defending Against Securities Fraud Charges

While securities fraud charges are serious, a conviction is not inevitable. Josh Tomsheck has extensive experience developing strategic defenses for clients facing securities fraud charges. Some of the defenses we may pursue include:

1. Lack of Intent: Securities fraud requires proof that the defendant intentionally misled or defrauded others. If your actions were based on a misunderstanding or honest mistake, this may negate the intent required for a conviction.
2. No Deceptive Conduct: If there is no evidence of deliberate fraud, your attorney may argue that no fraudulent conduct took place.
3. Good Faith Defense: If you believed your actions were legal and proper, this defense may be used to show that you acted in good faith, even if the outcome was unfavorable.
4. Insufficient Evidence: Securities fraud cases often involve complex financial transactions. If the prosecution’s evidence is weak, incomplete, or circumstantial, your defense can challenge the validity of the charges.
5. Coercion or Duress: If you were pressured or forced to participate in fraudulent activities, this could serve as a defense, mitigating your responsibility.

Each securities fraud case is unique, and a tailored defense is crucial to achieving the best possible outcome. Josh Tomsheck will thoroughly investigate the facts of your case and develop a strategy that fits your specific situation.

Why Choose Josh Tomsheck and Hofland & Tomsheck?

Facing federal securities fraud charges can be overwhelming, but you don’t have to face it alone. Josh Tomsheck is a nationally board-certified criminal defense attorney with a proven track record of defending clients against complex financial crimes. His deep knowledge of securities regulations, trial experience, and commitment to individualized representation make him a formidable advocate.

At Hofland & Tomsheck, we believe in client-centered legal representation. We understand the personal and professional consequences of facing federal charges, and we work tirelessly to ensure that our clients receive the best possible defense. Whether through negotiation or trial, our goal is to secure the most favorable outcome for you.

Contact Us for a Free Consultation

If you are under investigation for or charged with securities fraud, the time to act is now. The sooner you retain experienced legal representation, the better your chances of building a strong defense. Contact Josh Tomsheck and the team at Hofland & Tomsheck today to discuss your case.

Call us at (702) 895-6760 or complete our online contact form to schedule a free consultation. We will review the details of your case, explore your legal options, and develop a strategy tailored to your needs.