Corporate/Securities Fraud

Have you been charged with Corporate or Securities Fraud? Choose an Experienced Criminal Defense Lawyer. Choose O'Brien Law Boston.

Corporate and securities fraud involve illegal acts (or omissions) by an entity that is related to the activities of the entity.

Securities fraud involves fraudulent acts relating to the sale, offer or purchase of securities. Securities fraud is regulated by the Securities Exchange Commission (SEC), as well as by state commissioners and state laws. Common examples of securities fraud include insider trading (buying or selling securities based on material information that isn’t public) and misrepresentation (misleading investors in order to influence the financial market). The broader categories of securities fraud include the following:

  1. Internet Fraud: The most common form of this is a “pump-and-dump” scheme. In these, criminals distribute false information in online chat rooms, boards and using spam emails. The purpose of this is to cause a dramatic stock price increase for ones that are thinly traded or belong to shell companies. Then, when prices are high enough, the criminals involved “dump” their shares, making a large profit before the prices fall again.
  2. Insider Trading: This is defined as the trading of a corporation’s stock or securities by “insiders”, which are defined as officers, key employees, members of the board of directors or anyone else who holds over 10% of the shares. In these cases, the “insider” trades based on information they know that is not public, and that they learned during due to their role within the company.
  3. Accountant Fraud: This occurs when an accounting firm is negligent, and doesn’t identify and prevent falsified financial reports from being published.
  4. Mutual Fund Fraud: Many major brokerages and mutual fund firms have been accused of this. It consists of various acts that deceive their disadvantaged customers, such as late trading and market timing.

Corporate fraud can take many different forms but it is typically committed by large, publicly traded corporations and their executives. Corporate fraud is very complex and many different government agencies are involved in these types of investigations. The following are among the most common types of corporate fraud.

  • Corporate Misconduct: This is committed by high –level officials in a corporation, and received a lot of attention in the early 2000s in the aftermath of Enron.
  • Dummy Corporations: These are created in an effort to create the illusion of being an already existing corporation with a very similar name. Those responsible then sell securities in their new dummy corporation. To do this, they mislead their investors into believing they are buying shares in the real corporation.

Speak with a Boston Criminal Lawyer 617-512-0939

Fraud and illegal acts like these are usually detected and reported by auditors. Often times, auditors uncover fraud by going over documents like financial statements. If you have been charged or think you are being investigated for corporate or securities fraud, call Francis T. O’Brien Jr. of O'Brien Law Boston at 617-512-0939. There will be no fee to discuss your case, and all information will be kept confidential.