There are numerous types of white collar crimes. Whether it is fraud, embezzlement, or identity theft if a financial transaction or a computer is involved than it will likely be considered a white collar crime. These offenses are often aggressively prosecuted, especially since those who allege to have lost money may speak very loudly on the matter. One type of white collar crime, insider trading, is no exception.
Insider trading occurs when an individual breaches a fiduciary duty by buying or selling a security based on nonpublic and material information. While corporate officers and employees can certainly be accused of insider trading if they buy or sell securities based on little known business developments, anyone they tip off to such nonpublic information may also be charged with a crime. Therefore, insider trading is wide-ranging and may affect many individuals.
Crimes involving financial matters are aggressively prosecuted and may, if a conviction is obtained, result in significant penalties. An individual may wind up spending years in prison, pay fines, and be ordered to pay restitution. Such allegations may ruin an individual’s career in the financial industry and may cause personal acquaintances to distance themselves.
With a lot to lose, those accused of insider trading should put forth an equally aggressive criminal defense. By doing so, a defendant gives himself or herself the best possible chance of success. Hopefully, with an experienced, knowledgeable, and diligent California attorney by his or her side, an accused individual can avoid penalties and return to his or her normal life with reputation intact.
Source: FindLaw, “Insider Trading: Information on Bounties,” accessed on Nov. 22, 2014