In recent years, the SEC and the Courts have expanded the definition of insider trading, which can now include trading insiders, and those who get information from insiders and even the random man in the street if the SEC believes that he obtained the information from someone who should not have the information. See SECLaw Blog posts on insider trading for more information.
While many people, including myself believe this has gone too far (See, SEC needs to be reigned in on the expansion of insider trading liability)
The SEC takes insider trading very seriously, and if you are found guilty of insider trading, the total fines and penalties imposed after a trial are over THREE TIMES the amount of profit that the SEC claims you made. And that is profit, without deducting any losses.
The attorneys in my firm are all former SEC Staff attorneys and brokerage firm attorneys. With over 100 years of combined experience, the overwhelming majority of that time in securities litigation, we have seen it all and litigated it all.
We have represented targets and witnesses in hundreds of SEC and FINRA investigations. If you receive a subpoena from the SEC you need to speak us, BEFORE you speak to the SEC. Call our office at 212-509-6544 to discuss how we can help you. My partners and I have successfully resolved dozens of insider trading investigations for clients across the country.
Remember, Martha Stewart did not go to jail for insider trading, she went to jail for lying to investigators.
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Mark J. Astarita, Esq. represents investors, financial professionals and firms in litigation, arbitration and regulatory matters across the country. He is a partner in the national securities law firm of Sallah Astarita & Cox, LLC and can be reached by email at firstname.lastname@example.org or by phone at 212-509-6544.
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