Litigation and enforcement surrounding securities fraud in Miami have seen an uptick in recent years, increasing the odds that a company may face a lawsuit. Lawsuits may arise from acquisition opposition or supposed infringements of securities. Or a corporation may face an inquiry from the government or the Financial Industry Regulatory Authority (FINRA), an NGO that controls member brokerage firms and exchange markets.
Investments such as stock, bonds, preferred shares, mutual funds, or agricultural futures are all forms of securities.
As an investor, knowing where funds are going and how changes in policy will impact your returns is important. Investors tend to trust stockbrokers and analysts to steer their assets into maximized or assessed returns. Of course, no investing plan is foolproof, but in some cases, the "analysts" may take advantage of clients so that they can use funds from consumers to pursue self-interests.
It can be frightening and perplexing to presume securities fraud. What will become of the investment and the capital? And what does the future hold for the business? If you suspect securities fraud, all these are valid questions to pose.
Many business owners and investors have an understanding that shares are controlled by the federal government and that the agency responsible for the supervision and oversight is the United States Securities Exchange Commission, commonly known by its SEC acronym.
However, what many may not recognize is that individual states still have their own securities legislation and rules that are commonly referred to as "blue sky laws".
The term "Blue Sky laws" is a federal rule intended to safeguard prospective investors from stock manipulation. If there is some form of exception, they force sellers of new issues to report the deals, along with presenting applicable financial records. When it comes to investment, this provides investors greater peace of mind when they can focus their decisions on trustworthy results.
Although most anti-security fraud laws are imposed by the SEC and numerous state regulatory bodies, under each state statute, individual states are free to bring action against those in violation. Both the offer and selling of shares and all licensing and reporting provisions for dealers and individual stockbrokers who do business in the state are governed by the individual state Blue Sky rule. This refers to brokers doing business in the state directly and indirectly, along with prospective financial advisers looking to deliver investment advisory services.
Congress kept the Blue Sky rules untouched after federal laws were passed to regulate securities laws. As long as they do not violate or interfere with established federal law, this indicates that they are legitimate and states are free to create their own rules.
In 2009, in an attempt to become one of the leading states to enforce and monitor securities fraud, the state of Florida implemented the Investor Protection Act (FSIPA). It is a robust law intended to shield the consumer against misleading and illegal securities sales activities in the state of Florida.
Essentially, whether someone or individual directly or indirectly participates in any method, act, procedure, or misrepresentation that acts as deception in relation to the selling or acquisition of security, FSIPA is violated.
Any FSIPA breach can result in cease and desist orders, civil and regulatory fines, and potential felony charges and penalties.
Securities fraud offenses are typically prosecuted in the federal system and the laws pertaining to Securities Fraud can be found at 15 U.S.C. § 77 & 78. Some of the typical offenses for which we represent clients in this arena include lying or misrepresenting things to the Securities and Exchange Commission (SEC); insider trading; selling or buying unregistered securities and selling securities by committing fraud.
At the Law Offices of Mark Eiglarsh, we zealously defend clients accused of securities fraud offenses. If you or someone you know has been charged with securities fraud, it's imperative that you hire an experienced criminal defense lawyer to assist.
The general information provided above about securities fraud in Fort Lauderdale is meant for educational purposes only and is not a substitute for speaking directly with an attorney about the facts and circumstances of your case. Please call 954.500.0003 in Broward or 305.674.0003 in Miami to schedule a consultation with the Law Offices of Mark Eiglarsh.