Criminal Defense Lawyers

FINRA Defense for Municipal Securities Violations

FINRA Defense for Municipal Securities Violations: A Comprehensive Guide

You’re here because you or your firm is facing potential violations related to municipal securities. Take a deep breath – this is a serious situation, but you’ve come to the right place. We’re going to walk through everything you need to know, step-by-step.First, let‘s get on the same page about what exactly municipal securities are. These are debt securities issued by states, cities, counties and other government entities to fund public projects or operations. The municipal securities market is massive – over $3.7 trillion in the U.S. alone.Now, what could possibly go wrong in such a tightly regulated market? Quite a bit, actually. The Securities and Exchange Commission (SEC) has been cracking down hard on violations through its Public Finance Abuse Unit. Some of the biggest areas they look at include:

• Offering and disclosure fraud
• Tax and arbitrage-driven fraud
• Pay-to-play and public corruption
• Public pension accounting issues
• Valuation and pricing manipulation

So, what do you do if you get hit with one of these things? Here‘s where we dive in.

Understanding the Charges

The first step is getting crystal clear on exactly what violations you‘re being accused of. The SEC doesn‘t mess around – they’ll come at you with dense legalese and complex securities regulations. Don‘t try to go it alone.Bring in an experienced securities defense attorney immediately. They’ll be able to decipher the charges, explain them in plain English, and start mapping out a defense strategy. Things like:

• Materiality of any alleged misstatements or omissions
• Evidence of intent or “scienter” behind the violations
• Statutes of limitations on the claims
• Potential sanctions like fines, trading prohibitions, etc.

Your lawyer is your lifeline here. Listen to their advice and provide full transparency about your situation and role. It‘s the only way they can properly defend you.

Building Your Defense

Once you understand the lay of the land, it’s time to start building a comprehensive defense. This is where things can get complicated, fast. You’ll likely need to:Gather Evidence and DocumentationFrom emails and memos to trading records and financial statements – every shred of paperwork related to the dealings in question will be critical. Don‘t count on your firm having everything neatly organized either. You may need to do some serious digging and document collection.Interview Witnesses and Parties InvolvedYour attorney will want to talk to anyone with potential knowledge about what went down. Coworkers, supervisors, clients – leave no stones unturned. The goal is to understand every angle and uncover any contradicting narratives.Retain Expert WitnessesComplicated securities cases often require expert analysis and testimony. This could include forensic accountants, economists, regulatory experts and more. Their credibility and evidence will be crucial.Analyze Regulatory Guidance and Legal PrecedentSecurities law is a complex, ever-evolving beast. You’ll need to pour through reams of regulatory releases, staff guidance, legal decisions and more. Identifying contradictions, ambiguities or mitigating factors could be key.Negotiate With RegulatorsIn many cases, you’ll want to pursue settlement negotiations with FINRA or the SEC in parallel to building a defense. An experienced attorney will know how to leverage evidence and legal arguments to push for the best possible terms.It’s a lot, but you need to be prepared to go all-in on your defense. Half-measures could leave you exposed to devastating penalties and sanctions.

Understanding Potential Penalties

Which brings us to the stakes. What exactly are you facing if found guilty of municipal securities violations? It depends on the severity, but it could include:

• Temporary or permanent ban from the securities industry
• Revocation of securities licenses and registrations
• Substantial monetary fines and penalties
• Potential criminal liability in extreme cases
• Irreparable reputational damage

Those are the cold, hard facts. The sanctions can completely derail careers and shutter businesses. It’s why mounting an aggressive defense from day one is absolutely critical.

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

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Google rating score: 4.9 of 5, based on 736 reviews

Protecting Your Rights

As you navigate this situation, it’s also crucial to understand and protect your rights at every turn. This includes:The Right to Remain SilentAnything you say can and will be used against you. Don’t make any statements – even seemingly innocuous ones – without your lawyer present. FINRA and the SEC are looking to build cases, not help you.The Right to Demand Due ProcessYou have the right to proper notification of charges, timely hearings, evidence sharing and more. Don’t let regulators violate these or any other constitutional protections.The Right to Vigorous RepresentationYou’re entitled to legal counsel at all stages of any investigation or enforcement action. Make sure you have a relentless advocate in your corner, not just a warm body going through the motions.The Right to Appeal Adverse DecisionsIf things don’t go your way, you have the right to exhaust all appeals processes and challenges. Having an experienced appellate lawyer involved from the start is wise.Your rights may seem obvious, but they’re easily violated if you don’t understand them fully. Let your legal team guide you on properly invoking and protecting them.

Choosing the Right Legal Team

Speaking of legal teams, who you have representing you matters immensely. When your career and livelihood are at stake, you need absolute best-in-class counsel. Some key criteria:Proven Securities Law ExperienceYou want attorneys who have been in the trenches of high-stakes securities cases for years, if not decades. This is not the time for on-the-job training.Deep Regulatory KnowledgeYour legal team should have an intimate understanding of how regulators like FINRA and the SEC operate. Former employees or prosecutors can be invaluable assets.A Tough, Aggressive MindsetYou need pitbull litigators who will fight tooth and nail to protect your rights. This isn’t a game. You want a team that matches the regulator’s intensity.Comprehensive SupportSecurities cases are complex, wide-ranging affairs. You’ll want a full-service firm with teams of lawyers, investigators, experts and staff to handle every aspect.Excellent CommunicationThis is a stressful, high-stakes scenario. You need attorneys who will keep you constantly informed in language you understand – no legalese allowed.Reasonable Fee StructuresTop-tier representation shouldn’t send you into bankruptcy. Look for firms that offer alternative fee arrangements and payment plans.Choosing a legal team is arguably the biggest decision you’ll make. Take your time, ask the right questions, and make sure they’re truly the best fit for your specific situation.

Navigating Parallel Proceedings

Unfortunately, securities violations can open you up to multiple fronts of legal jeopardy. It‘s critical your defense team has experience managing parallel:Civil and Criminal CasesWhile FINRA and the SEC bring civil charges, the Department of Justice can also initiate criminal prosecutions for securities fraud and other offenses. You’ll need a coordinated strategy.Federal and State CasesDepending on the violations, you could face actions from both federal regulators like the SEC and state-level authorities like the New York Attorney General’s office.Administrative and Court ProceedingsSecurities cases often involve administrative hearings before regulatory bodies as well as federal and state court actions. Each requires tailored approaches.Keeping all these moving parts on track and ensuring consistent defense theories is a monumental task. Make sure your lawyers have direct experience in this area.

Protecting Your Reputation

Even if you successfully fend off charges, the stain of a securities investigation or enforcement action can linger. Proactive reputation management is essential, including:Strategic Media RelationsYour legal team should work hand-in-hand with experienced PR professionals to control the narrative through the media and other channels.Online Reputation MonitoringIn today‘s digital world, a few negative articles or posts can decimate your online presence. You’ll need comprehensive monitoring and suppression tactics.