15110 North Dallas Pkwy #400
Dallas, TX 75248
Securities Fraud laws are governed at the state and federal level. These types of crimes involve engaging in any type of deceptive or fraudulent dealing with the sale of securities. This includes corporate officers, directors or individuals that make a statement that may misrepresent distort or withhold information relating to the company's stock.
A person charged with securities fraud in Texas will face felony charges and jail time depending on the severity of the offense.
Dallas Securities Fraud Defense Attorney
The Law Offices of Richard C. McConathy represent residents of north Texas that have been accused of securities fraud including the following areas; Dallas, Fort Wort, Highland Park, University Park, Carrollton, Plano, Irving, Allen, Denton and Arlington.
Richard C. McConathy of the The Law Offices of Richard C. McConathy will work hard to ensure that you have a strong defense built for your case by using his years of experience in defending clients facing these types of fraud charges.
A person that is accused of securities fraud does not have to accept their charges and face jail time for years. Contact The Law Offices of Richard C. McConathy today at (972) 233-5700 to speak with an experienced attorney that can review your case.
Securities Fraud Information Center
- Securities Fraud in Dallas
- Penalties for Securities Fraud
- Defending Those Charged with Securities Fraud in Dallas TX
There are quite a few different categories of securities fraud including:
- Corporate misconduct
- Dummy corporations
- Internet fraud
- Insider trading
- Microcap fraud
- Accountant fraud
- Boiler fraud
- Short selling abuses
- Ponzi schemes.
Corporate Misconduct –Corporate officers have the responsibility to work in the best interest of the corporation and shareholders. Intentionally wrongdoings or mismanagement within a company may constitute corporate misconduct.
Dummy Corporations –These companies are created by deceivers that create entities with similar names to bigger companies. By doing this they are able to coerce investors into thinking that they are buying shares of a legitimate company.
Internet Fraud – Fraudsters engage in online messaging boards, forums and chatrooms in order to create false information and hype about a stock company. By doing so they try to raise the price of a stock and once it reaches a certain level they profit off the stocks before the prices drop back down.
Insider Trading –Insider trading happens when employees or members of a company make stock transactions based on news which is not currently available to the public in order to benefit themselves.
Microcap Fraud –This type of fraud usually revolves around "penny stocks". Small companies with under $250 million marketing capitalization are deceptively promoted and then later sold to investors. Since these companies are so small, criminals use internet fraud to release false information to raise the price of the stock and then sell out before the price drops again.
Accountant Fraud – A related field, accountant fraud happens when the financials of a company are not represented honestly and are misleading. Thus, causing the price of a company's stock to either increase or decrease based off these false reports.
Short Selling Abuses -- Certain types of short selling or abusive short selling is considered a securities fraud. When a person shorts a stock they are betting against the stock. Due to a large amount of short selling transactions the price of a stock can be altered in a negative way to make it seem as if the stock is worth less than its true value.
Ponzi Schemes – A Ponzi scheme makes money off of the investors instead of making money for the investors. The withdrawals of the company are financed through the investors in which eventually the company can collapse causing all of the investors to lose their money.
The state of Texas takes security fraud very seriously. It is considered a felony in the state and the degree of severity of the felony will depend on the amount of money that was involved in the case.
- Less than $10,000 – Criminals face a third degree felony. Perpetrator will be charged $10,000 and/or between 2-10 years in state prison.
- $10,000-$100,000 – Criminal will be charged with a second degree felony. This crime carries a sentence of 2-20 years in a state prison and/or a fine up to $10,000.
- $100,000 or more – In this case the criminal will be charged with a first degree felony. They will be served a sentence of up to life in prison or not less than 5 years or more than 99 years in state prison and/or a fine of up to $10,000.
If the individual receives a "cease and desist" to ask them to stop performing their fraudulent activities in securities then he or she may face up to $5,000 in fines and/or a jail term of up to 2 years in state prison.
Securities fraud and other white collar criminal charges are complex. It is imperative to consult an experienced securities fraud, if faced with these charges. The attorneys at The Law Offices of Richard C. McConathy use the team approach to provide a detailed, skilled defense on your behalf. To speak with a white collar defense attorney in Dallas, contact The Law Offices of Richard C. McConathy by submitting an online form or calling (972) 233-5700 for a free consultation.
The experienced securities fraud defense attorneys at The Law Offices of Richard C. McConathy proudly represent clients throughout Texas, including Dallas, Allen, Irving, Highland Park, University Park, Plano, Southlake, Carrolton, Richardson, Mansfield, North Richland Hills, Denton, Flower Mound, and the