Nashville Securities Fraud Attorney

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Defending white collar crimes is something a Nashville criminal defense attorney is often called on to do. One of the most common white collar crimes is securities fraud, which is sometimes referred to as “investment fraud.” It involves providing false information in an effort to entice people to buy or sell certain stocks, and may include offenses such as insider trading, embezzlement, or stock manipulation. Many people become involved in securities fraud without even realizing they are doing so, which is why it is important to know when this type of illegal activity may be occurring.

Types of Fraud

There are actually numerous ways in which securities fraud can be perpetrated, but some of the most common ones are:

  • Internet Fraud: This occurs whenever excitement is generated about certain stocks in Internet chat rooms, through email blasts, or via social media in order to inflate their prices. This is often referred to as a “pump and dump” scheme because once information is “pumped,” prices increase and then the fraudsters “dump” their holdings at a hefty profit.
  • Insider Trading: Insider trading refers to the act of buying or selling stock based upon “insider” knowledge that would not be available to the general public. Since this gives people a definite market advantage, it is strictly prohibited.
  • Creation of Dummy Corporations: This occurs whenever fraudsters create false companies that intentionally mimic reputable, well-established ones. Shares of stock are then offered in an effort to trick people into thinking they are buying shares in the more notable company. This could make it necessary to visit a Nashville criminal defense attorney for help in defending allegations of trademark or patent infringement in addition to fighting security fraud charges.
  • Ponzi Schemes: Named after a famous perpetrator, Charles Ponzi, this act involves an unscrupulous individual encouraging people to make a fraudulent investment and then simply disappearing with the money. The perpetrator may also make false statements about the return on the investments so that people will continue to pump money into the scheme.

Regulated by the Securities and Exchange Commission

Acts of securities fraud are investigated by the Securities and Exchange Commission, or SEC. Due to limited resources, the SEC is not able to effectively prevent securities fraud, but instead reacts to cases after they occur. As such, it is not uncommon for people to contact a Nashville criminal defense attorney before charges are even brought, simply because they have become the target of an investigation. Many times, seeking help early can prevent charges from being filed in the first place.

Don’t Delay Getting Help. Contact a Nashville Criminal Defense Attorney Today

The sooner you contact Nashville criminal defense attorney Brent Horst, the more thought out your defense will be. Call (615) 403-2971 today.