Fort Lauderdale Securities Fraud Lawyers
Protecting Your Rights in Federal Securities Fraud Cases
Securities fraud is a serious federal crime involving deceptive or manipulative conduct tied to buying or selling investments. These acts can include misrepresenting information to investors, engaging in insider trading, or running illegal operations like Ponzi or pyramid schemes. Whether the actions are intentional or misunderstood, allegations of securities fraud can quickly trigger an in-depth investigation by federal agencies such as the SEC (Securities and Exchange Commission) or DOJ (Department of Justice).
Once federal authorities get involved, the stakes become significantly higher. These cases are typically complex, time-consuming, and backed by extensive investigative resources. If you're facing charges or even under investigation, it’s essential to understand that federal prosecutors aggressively pursue these cases. Convictions can result in lengthy prison sentences, substantial fines, asset forfeiture, and permanent damage to your professional and personal life.
At Hager & Schwartz, P.A., we recognize the weight of what you're facing. Our team provides knowledgeable and strategic securities fraud defense for Fort Lauderdale clients. We thoroughly understand federal procedures and commit to helping our clients protect their rights and futures.
Seek legal guidance immediately if you're being investigated for or have been charged with securities fraud. Contact us for a free, confidential consultation.
What Is Securities Fraud?
Securities fraud is a federal offense involving deceptive practices related to stocks, bonds, or other investment instruments. At its core, securities fraud occurs when someone misrepresents or withholds key information to manipulate the market or convince others to invest based on false or incomplete data. These cases fall under white collar crime and are typically prosecuted under 18 U.S.C. § 1348, a federal statute that criminalizes fraud involving securities and commodities.
Federal prosecutors must establish several elements in a securities fraud case.
First, a material fact must be misrepresented or omitted—important enough to influence an investor’s decision.
Second, there must be intent, meaning the person accused knowingly acted to deceive, manipulate, or defraud others.
Finally, prosecutors often need to show that the investor relied on that false information and suffered a financial loss.
Securities fraud can take many forms; not all are easy to identify. Common examples include:
- Insider trading – Buying or selling securities based on non-public, material information.
- Ponzi schemes – Using new investor money to pay earlier investors while falsely promising returns.
- Pyramid schemes – Recruiting participants to invest in a non-sustainable model that relies on constant enrollment.
- Misleading investors – Making false claims or leaving out critical details about investment opportunities.
- Market manipulation – Intentionally distorting market conditions to influence stock prices or trading volumes.
These acts can carry serious consequences, including criminal charges, civil penalties, and significant financial liability. If you're being investigated for or charged with securities fraud, it’s essential to have a defense team that understands the law and the nuances of how these accusations unfold.
Types of Securities Fraud Cases We Handle
We provide aggressive and informed defense for individuals facing various securities fraud allegations. These cases often involve complex financial transactions and federal oversight, making the legal process especially overwhelming. Below are the most common types of securities fraud cases our firm defends.
Insider Trading
Insider trading involves buying or selling securities based on material, non-public information. This offense typically occurs when someone with access to confidential business details, such as an executive, employee, or associate, uses that information to gain an unfair advantage in the stock market. For example, an employee who knows a company is about to be acquired and purchases stock before the news goes public may face insider trading charges.
Insider trading is often prosecuted as a Class C felony, carrying serious consequences such as federal prison time, steep fines, and civil penalties. Because these cases are built on detailed financial records and intent, it is crucial to work with a defense attorney for insider trading who understands the legal standards and the technical aspects of financial regulation.
Investment Fraud
Investment fraud involves any scheme that deceives investors with false promises of returns or misleading information. This broad category includes Ponzi schemes, where money from new investors is used to pay earlier participants, and pyramid schemes, which depend on recruiting others into the scheme rather than legitimate investment activity.
In both cases, the fraud centers on intentional misrepresentation. The accused may be charged with knowingly concealing the true nature of the investment, overstating earnings, or hiding risks—all of which can lead to significant investor losses and federal prosecution.
Other Financial Crimes
Securities fraud can also involve less-publicized but equally serious forms of misconduct. This behavior includes the misuse of corporate information, such as selectively sharing confidential data with preferred investors, or broker misconduct, like unauthorized trades, falsified records, or failing to disclose conflicts of interest.
RICO Charges and Securities Fraud
Securities fraud cases can become more serious when they involve allegations under the Racketeer Influenced and Corrupt Organizations Act (RICO). Created to combat organized crime, RICO has since been applied to a range of white-collar offenses, including complex financial fraud. In securities fraud prosecutions, RICO is used when the government believes the fraud was not a one-time act but part of a broader pattern of criminal behavior involving a business or organization.
To bring RICO charges, federal prosecutors must show that the defendant participated in a criminal enterprise and committed at least two qualifying offenses—predicate acts—within 10 years. These acts include securities, wire, mail, and extortion fraud. If the government successfully proves this pattern, RICO allows for much harsher consequences than a standard securities fraud charge.
The penalties under RICO are severe. Each violation can result in up to 20 years in federal prison, on top of the sentences for any underlying offenses. Defendants may also face asset forfeiture, meaning they could be forced to give up money, property, or other assets tied to the alleged scheme. In civil cases, victims may sue for triple the damages they suffered, plus legal fees—dramatically increasing the financial consequences of a conviction.
We take RICO-related allegations seriously. These cases require a defense strategy that addresses the underlying securities fraud and the broader narrative the prosecution is trying to build. Our attorneys analyze every element of the government's case, challenge the classification of predicate acts, and work to dismantle claims of a criminal enterprise. If you are facing RICO charges related to securities fraud, we’re prepared to protect your rights and develop a robust defense tailored to your situation.
Federal Penalties for Securities Fraud
Securities fraud is prosecuted as a felony under federal law, and the penalties reflect the seriousness of the offense. Individuals found guilty can face significant prison time, heavy fines, and financial restitution to victims. In many cases, securities fraud is classified as a Class C felony, punishable by a prison term ranging from 10 to 25 years. These penalties apply regardless of whether the individual personally profited as long as the government can prove intent and harm to investors.
In addition to incarceration, individuals convicted of securities fraud may be ordered to pay substantial fines, often in the hundreds of thousands or even millions of dollars, depending on the scope of the alleged fraud. Restitution is also common and requires the defendant to repay the financial losses suffered by investors or other victims.
Beyond the immediate legal consequences, a conviction can lead to asset forfeiture, where the government seizes property or funds believed to be connected to the crime. The long-term impact can be just as damaging, including loss of professional licenses, disqualification from working in the financial industry, and severe reputational harm that affects future career opportunities.
We understand how overwhelming it can be to face this level of exposure. Our firm is committed to building a strong, strategic defense considering the legal and personal consequences of a federal securities fraud charge. We work to protect your rights at every stage of the case and help you navigate the challenges ahead with clarity and confidence.
Defending Against Insider Trading Allegations
Insider trading investigations are often complex and aggressive, typically led by federal agencies such as the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). These agencies work together to uncover whether a person bought or sold securities based on material, non-public information—information that, if made public, could influence an investor’s decision. If you're being investigated, you may not be formally charged yet, but the consequences of a misstep during this phase can be long-lasting.
Investigators rely heavily on electronic records, including email threads, text messages, call logs, and trading data. While some cases involve direct evidence, many rest on circumstantial evidence—patterns of communication, timing of trades, or sudden stock activity that suggests the use of confidential information. These patterns are often used to build a narrative supporting prosecution, even when no clear “smoking gun” exists.
An experienced insider trading defense attorney can make a critical difference in these cases. A skilled legal team can carefully examine the government’s evidence and challenge the assumptions it’s based on.
Defenses may include:
- Demonstrating the information was public
- Showing that the trade was planned before receiving any sensitive details
- Identifying flaws in how the investigation was conducted
Fraud crime defense lawyers may also negotiate to limit exposure or resolve the case without formal charges.
We understand the stress of being under investigation for insider trading. Our team works quickly and strategically to protect your rights, reputation, and future. If federal agents have contacted you or suspect you're under scrutiny, contact us immediately for a confidential consultation.
Speak with One of Our Florida Securities Attorneys
If you are under investigation or have been charged with securities fraud, insider trading, or another financial crime, the time to act is now. Federal cases move quickly, and early intervention from a knowledgeable defense team can make a critical difference in the outcome. Whether you’ve received a subpoena, been contacted by the SEC or DOJ, or simply suspect you’re being watched, you don’t have to face the uncertainty alone. You can have a financial crimes defense lawyer assist with your case.
At Hager & Schwartz, P.A., we represent clients in Fort Lauderdale and throughout Florida, offering trusted guidance in some of the most complex areas of federal law. Our team has extensive experience defending individuals accused of securities fraud, investment fraud, and financial crimes prosecuted under RICO statutes. We understand the stress, disruption, and reputational harm these cases can cause—and we’re here to help you respond strategically and protect your future.
We offer free, confidential consultations to assess your situation and discuss how we can support you moving forward. Every case we handle is treated with the discretion and focus it deserves. If you’re facing federal allegations, contact us today to speak with a skilled securities fraud defense attorney.
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