Insider trading occurs when a company employee, shareholder, or any other kind of company insider buys or sells securities based on material, non-public information, in breach of the legal duties they owe to the firm’s other shareholders. As such, insider trading is a serious charge. If you’ve been investigated for criminal insider trading, taking swift action to avoid conviction may become a necessity.
Read on to find out more about the possible punishments for insider trading.
Insider trading offenders risk exposing themselves to both civil and criminal penalties for their actions in breach of their fiduciary duty. Although the U.S. Securities and Exchange Commission may levy civil penalties to offenders, the U.S. Department of Justice is the agency in charge of investigating and prosecuting claims of insider trading in the U.S.
In terms of civil consequences, federal law allows the SEC to impose penalties known as treble damages, which could see you forfeit up to three times the amount earned in damages. The criminal punishments are arguably even more serious: if convicted of insider trading, you could be sentenced to a maximum of twenty years in prison, and be assessed a fine of up to $5 million. You may also be barred from working in the financial sector for life.
Being convicted of insider trading charges may have drastic consequences for your professional and personal life. If you’re facing criminal prosecution, the legal team at Chris Lewis & Associates P.C. will work diligently to provide you with the best defense possible as you attempt to clear your name.
Fill out the form below with some brief details to discuss your case with a trusted Dallas insider trading lawyer today, or call us at 214-984-3113 to set up an appointment.