Dallas Securities Fraud Attorneys

Q: What Is Securities Fraud?

- Securities are traded financial instruments such as stocks and bonds that serve the purpose of raising capital in public and private markets. Securities fraud involves these instruments. It is commonly called “investment fraud” because, in most cases, the defendant is charged with misrepresenting facts to investors and taking steps that benefit only themselves.

Securities fraud is an umbrella term that refers to a wide range of illegal actions people can take involving securities or regulated markets to profit at others’ expense. It is often not a victimless crime. Investors frequently suffer significant, devastating losses. For this reason, investigators and prosecutors take securities fraud seriously and seek maximum punishment for defendants.

If you have been charged with securities fraud or if you believe you are under investigation for this offense, you should get help from Dallas securities fraud attorneys with more than 60 years of combined criminal defense experience in state and federal courts in Texas and many other states. At Broden & Mickelsen, LLP, we understand the sophisticated nature of these cases and how to effectively protect our clients’ rights.

We are ready to provide a free and confidential consultation about your case. Call or contact us online today to learn more.

What Is Securities Fraud?

Securities are traded financial instruments such as stocks and bonds that serve the purpose of raising capital in public and private markets. Securities fraud involves these instruments. It is commonly called “investment fraud” because, in most cases, the defendant is charged with misrepresenting facts to investors and taking steps that benefit only themselves.

The Securities and Exchange Commission (SEC) and Texas State Securities Board (TSSB) are the agencies that investigate securities fraud allegations for federal and state prosecutors. If you are asked to speak with an investigator about a securities fraud investigation, you should speak with a lawyer first. Your securities fraud lawyer in Dallas can advise you on whether doing so will protect your rights and interests.

Many other organizations regulate the financial industry, including FINRA, NFA, and NASD. While those organizations cannot bring criminal charges against you, it may still be beneficial to have a white-collar crime lawyer’s guidance and representation throughout the process of dealing with them.

Securities fraud can also include false information, pump-and-dump schemes, or trading on insider information.

Who Can Be Charged with Securities Fraud?

Securities fraud typically involves people who owe a fiduciary duty to their clients. In other words, they must put their clients’ interests before their own. Investment advisers owe a fiduciary duty to their clients, for example. They must:

Use reasonable care when handling client funds and making transactions.
Never mislead clients.
Avoid conflicts of interest.
Fully disclose facts that bear on a client’s transactions.
Avoid making sales or other transactions simply to generate fees and commissions.
Never using the clients’ funds without permission or solely for the adviser’s benefit.

However, one does not necessarily need to be an investment adviser to engage in securities fraud. For instance, anyone can act on non-public information to buy or sell stock and, in turn, face a charge of insider trading. Sometimes, a person may face civil penalties for violating certain securities rules and regulations but not be subjected to a criminal securities fraud prosecution.

Types of Securities Fraud Penalties

A securities fraud conviction can carry severe consequences under Texas law. It depends on the level of a felony. Some of the penalties include:

First-degree felony (involving $100,000 or more) – Life sentence or five to 99 years in prison, up to a $10,000 fine, or both
Second-degree felony (involving between $10,000 and $100,000) – Two to 20 years in state prison, up to a $10,000 fine, or both
Third-degree felony (involving less than $10,000) – Two to 10 years in state prison, up to a $10,000 fine, or both

At Broden & Mickelsen, LLP, we know how the ramifications of a securities fraud conviction can go beyond fines and prison. A person may also face loss of a professional license and certification, administrative penalties, and significant restitution. We thoroughly assess the consequences of a conviction when discussing strategy with our Dallas clients.

“I would highly recommend this law office and Mick Mickelsen. He was very professional and knew his business and the law. He represented me in an ICE investigation that even with his doubts stuck by me and we essentially WON this case. Overall hour charge was WORTH every penny for his professionalism and quick contact. If in need, call MICK first.”
Former Client

“Mick represented my brother recently (2015-early 2016). I can’t thank him enough how he handled my brother’s case. Mick was very knowledgeable, experienced, professional, and responsive. Whenever I called or texted him for questions or concerns regarding my brother, he was very prompt to get back to me. If you need a criminal lawyer, he is THE ONE! Don’t waste your time & money on those lawyers who are only interested in your money without professionalism. My family and I have been grateful to him for his HELP!”
J

”Being accused of a crime that I didn’t chit was one of the worst things to ever happen to me. Once accused of something you literally have to prove yourself innocent. Without a good lawyer like Mr. Mickelsen I would probably be on some type of probation. Mr. Mickelsen got my charges dismissed. I feel so vindicated. I can’t describe how happy I am with the outcome. Thank you so very much!!!”
T.S.

“We have our life back! Our son was accused of a crime he did not commit. Through the dedication and hard work of Mr. Mickelsen, our son was found Not Guilty. Mr. Mickelsen will forever be in our hearts with tremendous gratitude. If you are accused of something, you will be best represented and served by Broden & Mickelsen, LLP.”
Brad Holt

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Types of Securities Fraud Charges Our Attorneys Defend Against

Due to our deep background as Dallas criminal defense lawyers, we can work with clients in a broad range of securities fraud cases, including:

1.Stockbroker fraud

Examples include when a stockbroker puts the broker’s interests ahead of the client’s by taking steps such as making unauthorized trades, overconcentrating funds, misrepresenting facts, or making investments solely to generate fees and commissions.

2.Broker embezzlement

This happens when a broker abuses their position of trust by taking a client’s investment funds and using them for their own purposes. Unfortunately, sloppy accounting can lead to this charge.

3.Unauthorized trading

Unless a broker has been granted discretionary authority or given express permission to make a trade, the broker has a duty to refrain from making any trades on the client’s behalf.

4.Misrepresentation or omission

Certain financial advisers owe their clients a duty to fully inform them of all facts that bear on their decisions.

5.Churning

This occurs when an investment adviser or broker makes repeated transactions that generate fees and commissions while doing nothing to benefit the client.

6.Misappropriation

This happens when a person takes funds from another with the intent to permanently deprive them of those funds. For instance, if an adviser is given money to invest in stocks but, instead, uses the funds to pay for a family vacation.

7.Ponzi scheme fraud

A Ponzi scheme happens when a person claims to invest funds but instead pays off old investors with money from new investors. The scheme typically falls apart when older investors cash out, and the funds dry up to pay newer investors.

8.Hedge fund fraud

If a hedge fund manager fails to provide investors with sufficient information, it could lead to accusations of fraud if the fund fails to perform as well as expected.

9.Junk bond fraud

This type of fraud typically involves getting clients to invest in stocks without fully disclosing the high risks they pose.

10.Pump and dump schemes

These schemes involve the use of misinformation to artificially inflate the value of a stock the person bought at a lower price.

11.Unregistered securities sales

This occurs when stocks or bonds are sold to the public without having first been properly registered with the SEC.

12.Oil and energy investment fraud

Texas is full of investment opportunities in the oil and energy industry. When investments fail to pay off, investors may make accusations of fraud.

13.Preferred shares of stock fraud

Some people are accused of fraud when they lure investors by promising they will have higher shares of a company or a higher class of stock than regular investors.

14.Private placement fraud

Fraud accusations often arise when securities are sold to a select group of investors and not the general public.

15.Variable annuity investment fraud

Because they typically generate high commissions, many advisers push these investments. However, they can face criminal liability if they fail to fully advise clients of their risks.

16.Elder financial fraud

When an elderly person must turn over the power to make financial decisions to another person, that person risks being accused of fraud if any missteps occur or unaccounted decisions are made.

Common Defenses in Securities Fraud Cases

At Broden & Mickelsen, LLP, we will explore all defenses available to you in your securities fraud case. Those defenses may include:

Unlawful search and seizure – If the government violated your rights to obtain the evidence it plans to use against you, that evidence can be suppressed, and the charges likely dismissed or never even indicted.
Insufficient evidence – If the government cannot present evidence that is sufficient to go before a jury, the securities fraud charge against you can and should be dismissed.
Consent – If a securities fraud charge alleges that a person took unauthorized actions, evidence of consent may defeat the allegations.
Entrapment – The government crosses a line when it encourages or induces someone to participate in securities fraud.
Duty – If a person did not owe a particular duty to investors, it would mean that the person cannot be charged with a crime in some cases.

How Can a Securities Fraud Defense Attorney Help You?

As attorneys who are board certified in criminal law and criminal appellate law by the Texas Board of Legal Specialization, we never hesitate to take on tough cases at Broden & Mickelsen, LLP. We have experience representing clients who have faced securities fraud and related white-collar crimes in Dallas and throughout Texas.

If you are facing a securities fraud charge, we can help you by:

Providing a thorough review of your case – We can assess the evidence, what further investigations could reveal, and your possible defenses. We can also discuss your needs and goals. Our goal will be to tailor a defense strategy that fits you.
Conducting a comprehensive investigation – A solid investigation serves as the foundation for an effective defense. We often consult with experts in areas such as investment strategy and securities transactions.
Protecting your rights and interests – In our pleadings, negotiations with prosecutors, trial preparation, and execution of our strategy at trial, your rights and interests will always be our top priority.
Communicating with you – We understand how important your case is to you. We will never leave you in the dark. You can count on Broden & Mickelsen, LLP to update you at every stage and be available to answer your questions.

Get Help from an Experienced Dallas Securities Fraud Attorney Today

At Broden & Mickelsen, LLP, we know the stakes are high when you are accused of securities fraud. We are ready to go to work right away to protect your rights and fight for you. To learn more, call or reach us online today and receive a free consultation.

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