Inside traders given prison sentence for three-year scheme

On Behalf of | Jul 27, 2019 | White Collar Crime

When participating in securities trading in California, confidentiality agreements are intended to prevent fraud and protect the investments of all parties involved. The importance of honesty in the investing business is upheld by the state, and in this story, it is clear that the consequences for violating the law can be severe.

The District Court recently found a man guilty of securities fraud, as well as conspiracy to commit securities fraud. According to the case and statements made, he and his conspirators illicitly gained over $3.9 million in profits over a three-year period. They had been working with a trader who was interested in public stock offerings.

The men involved had been sharing information about anticipated drops in price along with other confidential knowledge about the stock offerings. In addition, the conspirators made these offerings more appealing to investment bankers by falsely representing their trading entities. The men told potential investors that these entities were worth much more than they actually were, and the men also misrepresented the entities as financial firms with full service, when in fact they were not.

The conspiracy was uncovered with the efforts of special agents of the FBI. Several men pleaded guilty to this conspiracy. Some have been given probation, while others were sentenced to prison.

Anyone who has been charged with a conspiracy or fraud regarding high-value securities could be facing a potentially lengthy prison sentence. When faced with accusations at this level, an attorney who practices criminal law may be able to help provide sound representation.

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