"Greed is Good"

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Securities Fraud can take form in a variety of ways such as insider trading, stock manipulations, failure to disclose material information in investment schemes, corporate fraud, Internet fraud, "boiler room" operations, "micro-cap" fraud, accountant fraud, mutual fund fraud, Ponzi schemes and "pump and dumps."

 

Often, these types of cases involve lengthy investigations by the SEC and Government prosecutors. Therefore, it's important to have competent legal counsel representing your interests at the onset of any investigation and in connection with any subpoenas issued by the Feds for business records or testimony.

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You will need a lawyer who can differentiate between a lie to prospective investors and a "forward looking statement."

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Ponzi Scheme

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A "Ponzi scheme" is a description of an investment operation where unusually high profits are paid to investors out of the money paid into the investment plan by new investors — as opposed to legitimate profits generated by business activity.

 

In a Ponzi scheme, investors are usually offered high returns on their investment in order to persuade new investors to join into the investment scheme.  These high investor profits demand that the flow of money from newly acquired investors increase in order to keep scheme going.

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Rather, the "investment plan" starts falling apart due to bad investments or declining market conditions and investors begin to voice their dissatisfaction.  Once complaints are made to local law enforcement, FBI, SEC, FTC, or CFTC, the investigatory period begins. 

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And, once that happens, it makes good sense to contact a good criminal defense lawyer. 

 

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Defenses

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It's critically important to hire an experienced Federal criminal defense attorney to develop an effective defense strategy and hold the Government to their burden of proving the crime of securities fraud beyond and to the exclusion of any reasonable doubt.  ​Simply put, you’ll need a lawyer who can differentiate between a lie to prospective investors and a "forward looking statement."