What Constitutes Securities Fraud Under Florida State Law

Securities fraud under Florida law occurs when someone misrepresents, conceals, or manipulates information in securities transactions to deceive investors and cause harm. It is generally the same under federal securities laws. If you or your business is accused of such misconduct, facing a civil lawsuit or licensing revocation from an administrative agency, you need a strong defense from Robert Eckard & Associates. We provide experienced, results-driven representation in securities fraud, business litigation, and white-collar matters.

Securities law violations range from registration violations to the anti-fraud provisions of the Securities Act. Securities fraud occurs when an individual uses false statements, omissions, or deceptive practices in buying, selling, or offering securities, resulting in financial harm to investors.

Under Chapter 517, Florida Statutes, particularly Section 517.301, it is unlawful to employ “any untrue statement of a material fact or omission of a material fact” to mislead investors or to engage in business practices that operate as fraud or deceit.

Legal Framework: Florida Statutes and Penalties

Securities fraud could also be a crime under Florida or other federal governing law. Violations under Florida Law, pursuant to F.S. 517.301 can lead to felony charges, depending on the magnitude and scope of the fraud.

For example, when someone obtains funds or property aggregating more than $50,000 from five or more people through fraudulent transactions, that offense becomes a first-degree felony under Section 517.302. Florida also enforces statutes such as the Florida Communications Fraud Act (Chapter 817.034), which targets schemes that use mail or electronic communications to defraud investors.

Penalties may include imprisonment, fines, restitution, and a permanent criminal record. Our experience as business litigation attorneys in Florida allows us to identify the best approach for clients facing complex state or federal allegations.

Core Elements the Prosecution Must Prove

In criminal securities fraud cases, prosecutors bear the burden of proving specific legal elements demonstrating intent and wrongdoing. To convict someone of securities fraud, Florida must prove:

• Misrepresentation or omission: false statements or failure to disclose material facts
• In connection with securities or investments: the fraud must relate to the purchase, sale, or offering of securities
• Intent to deceive or defraud: fraudulent intent or reckless disregard for the truth
• Reliance by the victim: the investor relied on the misleading information
• Loss or damage: the investor suffered measurable harm

These elements mirror those in many securities fraud cases nationwide, but Florida law gives its own statutory clarity through Chapter 517. As a business litigation attorney with the principal office in Tampa Bay, Florida, while also handling state and federal cases throughout the United States, we evaluate each element closely to ensure that your defense addresses every issue the prosecution must prove. If you are facing charges involving securities fraud or have been sued for violations of the state or federal securities laws, contact us today to schedule a consultation for guidance and protection of your rights.

How This Looks in Practice

Securities fraud can take many forms, often involving deceptive conduct intended to influence investor decisions or manipulate financial outcomes. These cases typically center on misleading statements, hidden information, or fraudulent trading activity that causes financial loss to others. Below are some of the most common examples of how securities fraud may occur:

• Ponzi or pyramid schemes where returns to earlier investors come from funds of new investors instead of legitimate investment earnings
• Stock manipulation or pump and dump where share values are artificially inflated and then dropped after insiders sell
• Insider trading which involves using nonpublic information to trade securities
• Churning which means excessive trading by a broker to generate high commissions
• False statements regarding performance or assets
• Deficient or fraudulent Private Placement Memorandum and or Subscription Agreement

Florida also targets fraud involving a security interest. This includes cases where a person has a duty to account for proceeds from a sale under a security agreement but willfully fails to do so. You can view our Case Results page to see examples of how we defend clients in business and white-collar disputes. As trusted business lawyers in Palm Harbor, we focus on protecting our clients’ financial integrity and reputations.

Statute of Limitations and Time Constraints

Time is critical in securities fraud cases. Under Florida law, many civil claims must be filed within two years under Section 95.11(4)(e). Criminal prosecutions often must begin within five years of the date of the violation.

This means that if charges or claims are asserted too late, a strong defense may be available. If you suspect you are being targeted or investigated, reach out early for guidance. As business dispute attorneys, we understand that timing and procedure can determine the outcome of a fraud case.

Facing Securities Fraud? Act Now

Securities fraud under Federal or Florida law requires an assertive legal response. Defending against such serious allegations demands an attorney who has handled state and federal civil and criminal securities fraud cases, who understands both business litigation strategies and white-collar defense issues. Robert Eckard & Associates has represented clients throughout the United States in state and federal courts, primarily in Florida and Texas, helping protect a person’s liberty and reputation while minimizing the impact on one’s livelihood and the “collateral damage” that often follows. Let our firm stand by you with the knowledge and determination necessary for a strong defense. Contact us today to speak with our team and begin building your strategy.