As a securities investment expert, you should only use truthful information to guide potential investors. However, you might find yourself on the offensive if an investment goes wrong and investors sue you for fraud.
If you find yourself in the murky waters of a securities fraud case, you'll need a competent defense attorney.
Read on to understand securities fraud and how a lawyer can help you.
What Is Securities Fraud?
Securities fraud happens when an investor or financial advisor uses incorrect information to encourage a person to make investment decisions. Investors can sue you for securities fraud if you convince them to invest in a project and they lose their money because you misrepresent information about the investment. For instance, if you convince an investor to buy shares from a company knowing it is about to collapse, they can sue you for securities fraud.
The law inflicts heavy fines and prison terms for people charged with securities fraud. The punishment is even worse if the individuals use people's investments to fund criminal organizations. In such cases, the plaintiff can sue with Racketeer Influenced and Corrupt Organization (RICO) charges.
However, convincing a jury of your innocence without legal assistance can be difficult.
Therefore, you should hire an experienced securities law attorney to handle your case. The attorney can use different defense strategies to help you win the case or land a more lenient fine or prison term. If they do their job well, the lawyer can convince the jury to let you off on probation.
What Strategies Can a Securities Law Attorney Use To Defend You?
The law offers guidance on what amounts to securities fraud under the SEC. When you hire a qualified securities law attorney, they can navigate the technicalities of the law and use any of the following defense strategies in your case.
Prove That Statements Used Weren't Fraudulent
The plaintiff in a securities fraud case must provide documents to show the nature of fraud in your dealings with the investors. Your lawyer should analyze the documents to prove their legality and sustainability. The attorney can find loopholes in the statements and use them to win your case.
Your lawyer can argue that the prosecuting agency coerced you into creating an environment to commit fraud. In this case, you performed the fraudulent dealings under pressure or fear.
Absence of Intent
This defense strategy is one of the best ways a lawyer can defend you and free you of securities fraud charges. They can argue that you didn't intentionally mislead people into losing their money. For instance, if you guide people to donate to a charity organization, and the organization closes down unexpectedly, the investors can't sue you for fraud.
The prosecution should have conclusive evidence, such as a paper trail, to present in court and convince the jury of your guilt. However, your lawyer can raise a reasonable doubt about the evidence presented in court and use it to defend you.
To learn more, contact a corporate securities law firm in your area such as Carter West Law.