If you own stocks and are engaged in buying them and selling them then there are laws which govern your involvement in the market. One of those laws is that the playing field must be even. If you have information about a company or stock that is not available to the public and you act on that information, then you could be guilty of insider trading.
This is true whether you are an employee of the company in question or whether you are merely someone who has been “tipped off” by someone in a position to have important information about the potential for stock prices to rise or fall.
Yes, it is legal to buy shares of stock for a company you work for or are involved with. The difference is that the buy or sale of the stock would be something that would be routine and not in response to any particular event that might be coming up in the near future.
If you know your company is about to face a major lawsuit that will create a huge public relations problem and sell your stocks before the story hits the news, then you could be accused of illegal insider trading.
To prove insider trading, prosecutors must prove:
They might bring in emails, phone logs, text messages, internal memos, or other documents to help prove their case.
Effective defenses include:
A person who is charged with insider trading is in a great deal of trouble. The defendant can go to jail for up to 20 years and be fined up to $5,000,000. The corporation whose stocks were traded on the basis of the information my also be fined up to $25,000,000.
If you have been charged with this crime or think you might have cause to be charged with this crime it is vital for you to secure first rate federal criminal legal defense representation immediately. Call to make an appointment with Koch Law today.
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