Criminal Defense Lawyers

How Can I Defend Against Federal Insider Trading Charges?

Are you facing federal insider trading charges? If so, you’re likely feeling overwhelmed, anxious, and unsure of what to do next. We get it – insider trading allegations are extremely serious and can have devastating consequences for your career, finances, and personal life if not handled properly.But take a deep breath. With the right legal defense strategy, it is possible to successfully fight insider trading charges and protect your rights. At Spodek Law Group, we have decades of experience defending clients against complex white collar crimes like insider trading. We know how to navigate the federal court system and build a strong case in your defense.In this comprehensive guide, we’ll walk you through everything you need to know about defending against federal insider trading charges. We’ll cover the key elements prosecutors need to prove, potential defense strategies, and how an experienced insider trading defense attorney can help. Let’s dive in.

What Exactly Is Insider Trading?

Before we get into defense strategies, it’s important to understand what insider trading actually is from a legal perspective. Insider trading occurs when someone buys or sells securities (like stocks) based on material, non-public information about a company.The key elements are:

1. You had access to confidential information that was not available to the general public
2. That information was “material” – meaning it would likely affect the company’s stock price if made public
3. You traded securities based on that inside information

Some common examples of insider trading include:

• A company executive learning about an upcoming merger and buying stock before it’s announced
• An employee overhearing confidential financial projections and selling stock before poor results are made public
• A lawyer working on a corporate deal and tipping off friends to buy stock before the news breaks

It’s important to note that insider trading doesn’t just apply to company insiders. Anyone who obtains and trades on material non-public information can potentially be charged – including friends, family members, or business associates who receive tips.

What Do Federal Prosecutors Need to Prove?

To secure an insider trading conviction, federal prosecutors generally need to prove the following elements beyond a reasonable doubt:

1. You possessed material, non-public information about a company
2. You knew the information was confidential
3. You traded securities while in possession of that information
4. You acted with intent to profit from the inside information

The prosecution’s case will typically rely on circumstantial evidence like trading records, phone logs, emails, and witness testimony to try to prove these elements. An experienced defense attorney can often poke holes in this evidence and create reasonable doubt.

Potential Defenses Against Insider Trading Charges

Now that you understand the key elements prosecutors need to prove, let’s look at some of the most effective defense strategies we can potentially use to fight insider trading charges:

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.

Load more

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

1. Lack of Material Non-Public Information

One of the strongest defenses is arguing that you did not actually possess any material, non-public information at the time of the trades in question. We may be able to show that:

• The information was already public knowledge
• The information was not actually material or significant
• You did not have access to the alleged inside information

If we can demonstrate you didn’t have insider knowledge, the entire case falls apart.

2. Lack of Intent

Another powerful defense is arguing that you did not intentionally trade based on inside information. We may be able to show that:

• Your trades were part of a pre-existing investment strategy
• You had other legitimate reasons for the trades unrelated to inside info
• The timing of your trades was coincidental

Prosecutors need to prove you acted with intent – if we can create doubt about your motivations, it severely weakens their case.

3. Information Was Public

In some cases, we may be able to argue that the allegedly “inside” information was actually publicly available. This could involve:

• Showing the info was disclosed in public filings or announcements
• Demonstrating the info was known to analysts/investors
• Proving the news was reported by media outlets

If the information was public, it’s not insider trading.

4. Challenging the Evidence

We’ll carefully scrutinize all of the prosecution’s evidence and look for ways to challenge its credibility or admissibility. This may involve:

• Questioning the reliability of witness testimony
• Challenging the authenticity of documents/records
• Filing motions to suppress evidence obtained illegally

Poking holes in the evidence can create reasonable doubt about your guilt.

5. Entrapment

In some cases, we may be able to argue that you were entrapped by law enforcement into committing insider trading. This defense applies if:

• Government agents induced you to commit the crime
• You had no predisposition to engage in insider trading

Entrapment can be difficult to prove but may be a viable option in certain circumstances.

6. Statute of Limitations

Insider trading charges generally must be brought within 5 years of when the alleged crime occurred. If prosecutors waited too long to file charges, we may be able to get the case dismissed.These are just some of the potential defenses we can explore. The right strategy will depend on the specific facts of your case.

How an Experienced Insider Trading Defense Attorney Can Help

Facing federal insider trading charges is not something you want to handle on your own. The stakes are simply too high. Here’s how an experienced insider trading defense lawyer from Spodek Law Group can help:

Thorough Case Analysis

We’ll conduct an exhaustive review of all evidence and allegations against you to identify strengths and weaknesses in the prosecution’s case. This allows us to develop the strongest possible defense strategy.

Negotiating with Prosecutors

In many cases, we can negotiate with prosecutors to potentially:

• Get charges reduced or dismissed
• Arrange a favorable plea deal
• Minimize potential penalties

Our relationships and experience with federal prosecutors are invaluable here.

Challenging Evidence

We’ll file strategic motions to suppress evidence, exclude witness testimony, or dismiss charges when appropriate. This can significantly weaken the prosecution’s case.

Trial Experience

If your case goes to trial, you want attorneys with extensive federal court experience. We know how to effectively cross-examine witnesses, present evidence, and persuade juries.

Sentencing Advocacy

If convicted, we’ll fight for the most lenient possible sentence by highlighting mitigating factors and presenting character evidence.

Appeals

If necessary, we can file appeals to challenge a conviction or unfair sentence.The bottom line is that an experienced insider trading defense lawyer gives you the best chance at a favorable outcome. Don’t try to face these serious charges alone.

Potential Penalties for Insider Trading

To understand what’s at stake, it’s important to be aware of the potential penalties for insider trading convictions:

• Up to 20 years in federal prison
• Fines up to $5 million for individuals ($25 million for companies)
• Disgorgement of any profits made from insider trading
• Being barred from serving as an officer/director of a public company

On top of the criminal penalties, you may also face civil penalties from the SEC including additional fines and being barred from the securities industry.The exact sentence will depend on factors like:

• Amount of money involved
• Sophistication of the scheme
• Your role and level of involvement
• Criminal history
• Cooperation with authorities

An experienced defense attorney can advocate for more lenient sentencing if convicted.

Common Questions About Insider Trading Charges

Here are answers to some frequently asked questions we get from clients facing insider trading allegations:Q: Can I still trade stocks while under investigation?A: It’s generally advisable to halt all securities trading while under investigation to avoid any appearance of impropriety. Consult with your attorney before making any trades.Q: What should I do if contacted by the SEC or FBI about insider trading?A: Do not speak to investigators without an attorney present. Politely decline to answer questions and contact an experienced insider trading lawyer immediately.Q: Can I be charged with insider trading for a trade my spouse made?A: Potentially, yes. Prosecutors may argue you tipped off your spouse with inside information. Having separate trading accounts doesn’t necessarily protect you.Q: Is it insider trading if I overheard information in a public place?A: It can be, if the information was material and non-public. The key is whether you knew or should have known it was confidential info.Q: What’s the difference between criminal and civil insider trading charges?A: Criminal charges are brought by the DOJ and can result in jail time. Civil charges are brought by the SEC and typically involve monetary penalties. You may face both simultaneously.

Why Choose Spodek Law Group for Your Insider Trading Defense

When you’re facing insider trading charges, you need a law firm with the experience, resources, and tenacity to take on federal prosecutors and win. Here’s why Spodek Law Group should be your first call:

• Decades of Federal Court Experience: We’ve successfully defended countless clients against complex white collar charges like insider trading. We know the federal court system inside and out.
• Former Federal Prosecutors on Staff: Our team includes former DOJ attorneys who know how the other side thinks and operates. We use those insights to build stronger defenses.
• Aggressive, Strategic Defense: We leave no stones unturned in fighting for our clients. From challenging evidence to negotiating with prosecutors, we explore every avenue to get charges reduced or dismissed.
• 24/7 Availability: Federal investigations move fast. We’re available around the clock to protect your rights and advise you at every stage.
• Proven Track Record: We have a long history of achieving favorable outcomes for clients facing serious federal charges. Just check out our case results and client testimonials.

Don’t trust your future to an inexperienced lawyer or try to handle this alone. With Spodek Law Group in your corner, you’ll have the strongest possible defense against insider trading charges.

Take Action Now to Protect Your Rights

If you’re under investigation or have been charged with insider trading, time is of the essence. The sooner you get experienced legal counsel involved, the better your chances of a favorable outcome.Don’t wait – contact Spodek Law Group today for a free, confidential case evaluation. Call us 24/7 at 212-300-5196 or complete our online contact form.We’ll review the details of your case, explain your options, and start building a strategic defense immediately. With our insider trading defense attorneys fighting for you, you can feel confident you’re in good hands.Remember, an insider trading charge doesn’t have to ruin your life. With the right legal strategy, it’s possible to beat these allegations and protect your future. Let us put our experience and resources to work for you.