When there are allegations of misconduct by those involved in the financial industry or the business world, it may take months, if not years, for prosecutors to move on the information they have, as building a case takes a lot of time. As a result, it is often beneficial for those who are concerned about the ways in which their actions may be perceived by law enforcement to seek legal guidance proactively – even if an investigation hasn’t been announced – to better safeguard their rights in case they become targets of suspicion.
In a recent announcement about pending charges, federal prosecutors drew attention to a case of securities fraud that they allege cost investors millions and lead to profits of over $150 million for the two men accused.
What are the details of the pending case?
According to the information provided by the United States Attorney’s Office in Massachusetts, two men face charges related to securities fraud that allegedly netted them over $150 million in profit. The charges they face include conspiracy to commit securities fraud, securities fraud and attempting to cause the production of an identification document without lawful authority.
That last charge is the result of one of the two defendants allegedly attempting to obtain a fraudulent Ukrainian passport when they realized their legal situation. The securities fraud itself involves a pump-and-dump scheme that transferred debts and resources through multiple companies. The alleged actions led to investors losing millions. If convicted, the men charged could face up to 20 years in prison just for the securities fraud allegations.
Securities fraud cases often involve very complicated evidence that can be difficult for the average person to analyze and comprehend. Those who are accused of significant financial crimes often face both financial penalties and incarceration if they don’t fight back. Tracking what kinds of situations could lead to securities fraud charges or allegations of other financial crimes can help entrepreneurs and executives avoid mistakes that could lead to criminal liability.
Those who have questions about civil or criminal exposure in financial matters are welcome to contact the attorneys at Ford O’Brien Landy LLP for more information.
Source: Justice.gov, “Two California Men Indicted for $150 Million Securities Fraud,” March 28, 2023