Understanding Securities Fraud and Your Legal Options
Securities fraud occurs when someone uses false or misleading information to influence investment decisions. This can involve publicly traded companies, private offerings, or even investment advisors who provide deceptive guidance. Both individuals and corporate entities may be subject to investigations under Florida and federal law.
Common examples of securities fraud include:
- Insider trading
- Misrepresenting or omitting key financial information
- Market manipulation
- Unauthorized trading or excessive commissions
- Ponzi schemes or investment scams
In Florida, the Florida Office of Financial Regulation works alongside federal agencies such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to investigate suspected violations. Whistleblowers, investor complaints, or audits often trigger these investigations. Civil penalties may include fines, disgorgement of profits, and injunctions, while criminal charges can lead to imprisonment.
If you are under investigation or have received notice of an enforcement action, it is crucial to act quickly. Delays in securing legal representation can limit your options and increase your risk of severe penalties. A qualified securities fraud lawyer can respond on your behalf, manage all communications with regulators, and begin developing a comprehensive defense.
How We Defend Clients Accused of Securities Fraud
We take a multi-layered approach to defending clients accused of securities fraud. Our team examines every aspect of the case, including the timeline of events, financial records, and intent behind the actions. In many cases, what regulators allege as fraud may stem from poor communication, market losses, or technical violations rather than intentional wrongdoing.
Our legal strategies may include:
- Challenging the sufficiency or legality of the evidence
- Identifying procedural violations by investigators
- Demonstrating a lack of intent or knowledge
- Negotiating settlements to avoid formal charges
- Litigating aggressively in court if necessary
We also understand that many clients facing securities allegations are professionals with much at stake. We work discreetly to minimize reputational harm and protect your business relationships. When possible, we pursue resolutions that preserve licenses, limit financial loss, and prevent criminal prosecution.
Federal vs. State Enforcement
Securities fraud cases may be prosecuted at the state or federal level, or in some situations, both. The appropriate venue depends on the scope and nature of the alleged misconduct. Federal charges typically involve larger financial sums, cross-border transactions, or violations of national regulations enforced by agencies such as the SEC and DOJ. State prosecutors in Florida may pursue criminal charges under the Florida Securities and Investor Protection Act, particularly in cases involving local investors or intrastate activity.
Federal investigations often include grand juries, subpoenas, and the involvement of multiple agencies working in coordination. These proceedings can lead to both criminal indictments and civil enforcement actions. State cases may move forward more quickly but carry equally serious consequences, including fines, restitution, and incarceration.
We are experienced in managing defense efforts across jurisdictions, which helps clients avoid inconsistent outcomes, duplicate penalties, or conflicting legal strategies. Our firm also represents clients in administrative proceedings before FINRA and the SEC, where professional licenses and registration status may be at risk.
Serving Professionals and Business Clients Across Florida and Texas
We represent a diverse range of clients in securities-related matters, each with distinct legal and regulatory concerns. Whether you are a licensed financial advisor, an investor in a private offering, or a corporate officer overseeing compliance, fraud allegations can threaten your livelihood. These cases often intersect with business litigation or white collar defense. Our firm is prepared to address overlapping legal issues while protecting your reputation and financial future.
We represent clients including:
- Financial advisors and brokers
- Accountants and investment consultants
- Publicly traded corporations
- Private investment firms
- Entrepreneurs and individual investors
Our dual licensing in Florida and Texas allows us to defend clients across multiple jurisdictions. If you are involved in multi-state business transactions or facing parallel investigations, our legal team is equipped to handle the complexity.
For additional information about our work in business litigation, visit our business litigation services page.
Frequently Asked Questions
What should I do if I’m contacted by the SEC?
Do not speak with investigators without an attorney present. You have the right to legal representation and should avoid answering questions or providing documents until your lawyer has reviewed the request.
Can I go to jail for securities fraud?
Yes. Securities fraud can result in both civil and criminal penalties. If charged criminally, you may face prison time depending on the severity of the violation and the amount of financial harm caused.
Is a mistake in financial reporting considered fraud?
Not necessarily. For conduct to be classified as fraud, it must involve intent to deceive or manipulate. Honest errors or technical violations may not meet the threshold for criminal charges but can still result in regulatory action.
How long do securities fraud investigations last?
Investigations can last several months or even years, depending on the complexity of the case. During this time, it is essential to have legal counsel manage all interactions and prepare for potential outcomes.
Can I be held personally liable for actions taken by my company?
Yes. In some instances, company officers, directors, or advisors may be held individually responsible if they are found to have knowingly participated in fraudulent activities. We help protect clients from personal liability whenever possible.
Take Control of the Situation Today
Facing a securities fraud investigation or charge is stressful and can threaten everything you’ve worked to build. Whether you are accused of misleading investors or violating federal reporting rules, your legal defense will shape your future.
At Robert Eckard & Associates, we have the resources, knowledge, and commitment to take on complex fraud cases. Our firm has helped clients across Florida and Texas resolve business-related legal disputes through strategic, aggressive advocacy.
If regulators have contacted you, received a subpoena, or anticipate being investigated, don’t wait. Contact us today to schedule a confidential consultation. You can also learn more about our firm here. We are ready to protect your rights and reputation from day one.
