What Should My Next Steps Be if I Have Been Accused of Insider Trading?

Do you know what to do if you’re under investigation for a crime? Do you understand all your options and possible next steps? If you don’t know how to react, you could find yourself dealing with serious problems. Take any charge or investigation to your criminal defense lawyer immediately.

Any type of white collar crime comes with significant consequences. This is particularly true if you have a previous criminal record. You need to take the situation seriously and retain a knowledgeable criminal defense attorney immediately if you intend to protect your freedom.

The same is true if you are accused of insider trading, one of the forms of white collar crime. Insider trading carries possibly severe consequences if you are convicted of the crime.

Insider trading involves selling or buying a security by any person who has non-public or insider knowledge of that security. It can also involve passing along this insider knowledge to a person who then sells or buys this security. In order to be convicted of insider trading, you must have actually bought or sold that stock.

An insider requires a specific definition, such as an employee, officer or director of the company. The prosecution must take several steps in order to show that the actions were illegal.

For example, the prosecution must establish that the person who has been charged was given non-public information from an inside individual who knew that he or she was disclosing illegally and that the person who received the tip or information knew that this was outside the bounds of legality.

Insider trading can even extend to analysts or journalists with claims of misappropriation of information. A person, such as an analyst or a journalist might have access to sensitive details and passes this information along. An individual who receives this insider information and uses it to buy or sell a stock could be convicted of insider trading.

If you have been accused of insider trading and have already been formally charged, you need to establish a relationship with an experienced criminal defense attorney immediately.