Stock fraud accusations arise when investors are said to have bought securities on the basis of false information. Securities fraud allegations have been known to surface from innocent misstatements on a public company’s financial reports, and intrusive Government Investigations can occur at the company level or be directed at a single employee. Accounting Fraud, Front-running, Insider Trading and Short-selling abuses are all included under the umbrella of stock fraud allegations.
SEC regulations regarding stockbrokers are very specific, and if violated, the penalties can be harsh (and are becoming increasingly punitive).
A stockbroker may not:
Intentionally mislead an investor through misrepresentation or omission of key information
Pressure a client to purchase risky (or "unsuitable") securities
Concentrate all an investor's assets in a single stock
"Churn"; essentially, sell a large number of stocks with small gains in order to create additional broker's fees and show a profit
WorldCom's Bernie Ebbers and Enron's Jeff Skilling were sent to prison for 25 and 24 years, respectively, longer than our government incarcerates most murderers. Prosecution for stock fraud is always aggressive, which is why having an able legal defense team of stock fraud lawyers at your side is very important.
If you find yourself facing a federal investigation, Contact one of the Blanch Law Firm's experienced stock fraud lawyers by calling 646-797-4771 . The initial consultation is both free and confidential.