Dallas Securities Fraud Lawyer

Dallas Securities Fraud Defense Attorney

Securities fraud is a white collar crime involving deceptive or fraudulent conduct that induces investors to make stock purchase or sale decisions based on false information. Another type of securities fraud is insider trading, which involves a person using inside information about a company to make decisions about whether to buy or sell stock in that company before the information is made public. If you’re facing these charges, a Dallas securities fraud lawyer can help protect your rights.

Although the crime of securities fraud itself is relatively straightforward, it can be extremely complex in its execution and incredibly difficult to present plainly to a judge and jury in a court of law. Further, securities cases usually involve the Securities and Exchange Commission (SEC) — an agency with almost unlimited resources that you do not want to face alone.

Strong Representation For Serious Crimes in Dallas, TX

At Michael Uhl, P.C., we understand the complex nature of securities fraud and work diligently to defend your interests. Our ultimate goal is complete dismissal of the charges against you and we work aggressively toward this goal by analyzing the evidence, tracking the money, interviewing witnesses and using forensic investigators to comb through the books.

There are many different types of securities fraud in Dallas. We can defend you against them all, including:

• Insider trading
• Corporate fraud
• Accountant fraud
• Churning
• Pump and dump
• Short and distort
• Short selling distortions
• Ponzi schemes

Securities Fraud in Dallas

The Dallas Examiner reported that Texas residents lost over $10 million in over 6,000 scams in 2024. Investment and cryptocurrency fraud accounted for 31% of the losses, more than $3 million, a $2 million increase from the previous year. Some recent cases include:

• A Dallas businessman was indicted on charges of securities fraud and money laundering for defrauding investors of more than $200 million and manipulating five publicly traded companies.
• Over $27 million in scams by a Dallas business owner, who pleaded guilty to fraud related to oil, gas, and water rights for his business. Investors were told they were paying for business necessities, but the money was diverted to a private airplane service, a custom home builder, personal investment accounts, credit cards, and other personal expenses.
• Three people in Dallas County were indicted for federal investment fraud violations in a large-scale scam that targeted the Mexican-American community with a variety of schemes, such as a concert series and cryptocurrency projects.

What To Expect in a Securities Fraud Investigation

In most cases of suspected securities fraud, the SEC handles the complaint and investigation. This is the federal agency tasked with protecting investors, regulating securities markets, and enforcing securities laws. In this role, the SEC’s Enforcement Division has broad authority and extensive resources to investigate allegations and take legal action against people accused of violating securities laws.

Investigations can include techniques similar to those employed by other law enforcement agencies in gathering evidence, such as market surveillance, complaints and tips from investors, reports from regulatory organizations, and reports from the media. Investigations then include witness interviews, record and document examination, trading data review, and other means of collecting information.

Actions that commonly lead to investigations by the SEC can include:

• Misrepresenting or omitting important securities information
• Manipulation of securities’ market prices
• Unlawful taking of customers’ securities or funds
• Unfair treatment of customers
• Trading on non-public information about securities
• Sale of securities that are unregistered

The main legal actions that the SEC can bring against a person are civil and administrative. This can be in federal court or before an administrative judge. Depending on the facts of the case, the SEC may bring one or both kinds of proceedings.

Civil Action

The SEC files a complaint with the U.S. District Court and asks for a remedy or sanction. The SEC often asks for an injunction, a kind of court order that prohibits further actions by the party and requires audits, accounting, or other arrangements. They can also seek financial penalties, and the court can prohibit a person from serving in certain corporate roles. Violating such a court order can lead to additional charges, fines, and penalties.

Administrative Action

The SEC can seek sanctions through administrative proceedings, which are different from civil court actions. An administrative law judge considers the evidence presented by the SEC as well as opposing evidence and then issues a decision based on their findings and conclusions, along with a recommended sanction. Sanctions can include cease and desist orders, suspending broker-dealer or investment advisor registration, censures, penalties, or return of illegal profits.

Securities Fraud Laws

Securities fraud can be prosecuted under state and federal laws for the same act. This does not violate double jeopardy because the charges are in different jurisdictions. Some of the relevant laws include:

• Government Securities Act of 1993 – regulates the offer and sale of securities, enforced by the SEC, and can impose criminal and civil penalties.
• Securities Exchange Act of 1934 – prohibits fraud in securities trading, markets, and ongoing transactions, enforced by the SEC, and can lead to criminal and civil penalties.
• Sarbanes-Oxley Act of 2002 – Addresses fraud involving securities and commodities as a federal crime, enforced by the SEC, and can involve criminal penalties.
• The Texas Securities Act – sometimes called Blue Sky Laws, enforced by the Texas State Securities Board (SSB), expands on federal laws and includes criminal, civil, and administrative penalties.

Removing The Complexities of Security Fraud in Texas

Our lawyers work hard to make securities fraud issues understandable to our clients. We partner together to break the case down into manageable segments so we can attack the prosecution’s case piece-by-piece.

In both federal and state court, we provide exceptional and nuanced defense services to individual and institutional investors. Some of the defenses we can mount on your behalf include:

• Lack of intent or knowledge
• Absence of fraud
• Mistake or accident
• Due diligence indicating a lack of fraud
• Entrapment
• No investor acted on the disclosed information

FAQs

Q: How Long Do You Go to Jail for Securities Fraud in Texas?

A: In Texas, how long you go to jail for securities fraud depends on the specific charge and the amount of money involved in the case. Securities fraud is a felony in Texas, and the degree of severity influences how long a jail sentence might be. For example, with an offense involving less than $10,000, the charge is a third-degree felony, carrying a sentence of two to 10 years in state prison and a fine of up to $10,000.

Q: Who Can Be Charged With Securities Fraud in Dallas?

A: In Dallas, individuals, companies, and investment advisors can be charged with various illegal actions related to securities fraud, which can be state or federal charges. Some examples are a company reporting an inflated value of its assets, an individual using privileged information to make trades, or an investment advisor steering clients to unregistered advisors or other misrepresented investment opportunities.

Q: What Kind of Lawyer Do You Need for Securities Fraud?

A: If you are facing securities fraud investigations or charges, you need a securities fraud lawyer. Securities law is complicated and deals with significant regulatory elements. You need an attorney who is experienced in the complexities of the securities industry, whether that means arbitration or litigation in court. A skilled securities fraud lawyer can give you a significantly higher chance of the desired outcome in your case.

Q: What Is the Statute of Limitations on Securities Fraud in Texas?

A: The statute of limitations on securities fraud in Texas is five years from the date of the offense. This means that prosecutors have five years to file charges against someone accused of securities fraud. A statute of limitations keeps defendants from facing criminal charges with unreliable evidence and witnesses. It is important to note that civil claims may have a different statute of limitations or other rules that apply.

Call Us Now

If you are facing securities fraud allegations or an investigation, the legal team at Michael Uhl, P.C. has the skills and resources to develop a strong defense and advocate fiercely on your behalf. With decades of experience, including state and federal prosecution, our trusted attorneys know the laws and the tactics Dallas prosecutors and judges are likely to use.

For a strong, focused securities fraud defense, call the experienced Dallas, Texas, attorneys at Michael Uhl, P.C., at 214-237-0809, or contact us online.