Cleveland Securities Fraud Defense Attorney

Providing Aggressive Legal Representation to Defend Clients Accused of Investment Fraud

Securities fraud involves misrepresenting information to investors to manipulate them into purchasing or selling securities. At Watson Kuhlman, LLC, our investment fraud lawyers understand securities fraud and related white-collar charges and have successfully defended hundreds of clients.

In his nearly 30 years of practice, our founding attorney, Myron P. Watson, has won numerous awards for his exceptional skill in criminal defense. When you face accusations as serious as securities fraud, it is crucial that you have him on your side to shield you from the consequences of a conviction.

Some of the cases we regularly handle include:

Ponzi schemes
Insider trading
Late-day trading
Pyramid schemes
Front running
Embezzlement
Stock manipulation
Pump-and-dump schemes

Many instances of securities fraud are federal charges, so you need an attorney who frequently defends and understands the nuances of federal cases. Mr. Watson has extensive experience defending clients against investment fraud in state and federal courts throughout Ohio.

When you have him and our dedicated legal professionals in your corner, you have a team of advocates who provide assertive, proven defense counsel. Contact Watson Kuhlman, LLC, at our Cleveland, OH, law office to schedule a free consultation so that we may review the facts of your case.

What is Considered Securities Fraud?

Although many people are familiar with the term “securities fraud,” it can be challenging to understand what legal aspects must be present for the state or federal government to bring charges. Ohio law considers securities fraud a white-collar crime that involves providing misleading information to investors.

Stockbrokers or financial advisors are often the target of securities fraud investigations, especially after significant investment losses that do not appear to be linked to regular trading. Frequent examples of securities or investment fraud include:

Violations of the Securities Exchange Act of 1934
Using deception methods to encourage individuals to invest in fraudulent schemes
Making false claims regarding the value of securities or investments
Making false claims regarding securities transactions
Breach of fiduciary duties
Producing or influencing false financial statements with the purpose of misleading investors

In Ohio, the Department of Commerce, more specifically the Ohio Securities Act, oversees securities and investments to ensure citizens are protected from fraudulent acts. The U.S. Securities and Exchange Commission actively investigates whether securities fraud falls under federal guidelines.

If you are a stockbroker or financial advisor who has been accused of securities fraud or other theft crimes, do not wait to seek legal representation. Contact our investment fraud lawyer today to learn more about our legal services and how we can help.

What are Common Examples of Securities and Investment Fraud?

Even though strict state and federal guidelines have been established to prevent securities and investment fraud, it still occurs and is actively prosecuted by authorities. Some of the most common examples include:

Insider trading: Insider trading occurs when individuals such as investment advisers, stockbrokers, or other employees who have access to confidential information use it to buy or sell stock for financial gain
Ponzi schemes: These illegal activities, also called pyramid schemes, are built on new investors infusing cash into what they believe are legitimate securities. However, the money is funneled to pay the previous investors’ promised dividends. However, these schemes are often compared to a “house of cards” that collapses after the scheme can no longer sustain itself
Corporate fraud: Corporate managers purposely exaggerate the company’s earnings or hide losses and debts to over-inflate stock prices
Pump and dump: A stockbroker or financial advisor falsifies information regarding a stock or bond, making it appealing to clients who purchase the security. However, this strategy is used to build up the price so that the perpetrator can sell the stock for a profit
Churning: A stockbroker or financial advisor encourages clients to make numerous trades so they can earn more fees or commissions

All listed examples are strictly prohibited, and those engaging in these criminal activities can be formally charged with securities fraud. If you have been charged with a financial crime, you need an investment fraud attorney who understands the intricacies of state and federal law. Contact the Ohio securities attorneys of Watson Kuhlman, LLC today so that we may begin planning a well-crafted defense strategy that will protect your freedom and professional standing.

Why is it Important to Never Underestimate The Severity Of White Collar Crimes?

It is a common misconception that the U.S. criminal justice system does not take financial crime seriously. On the contrary, the state of Ohio and the federal government spend vast resources investigating and prosecuting crimes such as securities fraud and complex commercial litigation.

Although white-collar crime may be investigated at the state level, the federal government pursues most securities fraud cases through various agencies. However, if the fraud only involves Ohio agencies, it will be prosecuted by the state attorney. Regardless of whether the state or federal government is prosecuting the case, defendants accused of white-collar crime could face seized assets, steep fines, and significant prison time.

If you are being prosecuted by the federal government, you may accept the charges in the hope of receiving a lighter sentence. However, under federal guidelines, you could face a disproportionately harsh mandatory minimum sentence.

Therefore, even if you believe you could be arrested and charged with securities fraud, you must immediately hire an investment fraud attorney. Only an experienced Ohio investment fraud lawyer understands the complexities of securities laws and what steps to take to create a solid defense strategy on your behalf.

Our law firm has extensive experience handling securities fraud cases in state and federal courts and will fight to protect your rights, freedom, and reputation.

What are the Potential Criminal Penalties for Securities Fraud?

The state and federal governments often impose harsh penalties and lengthy prison sentences for individuals convicted of securities fraud. In nearly all cases, courts will also demand that the defendant pay the victim(s) restitution.

Every case is unique, and potential criminal penalties may vary based on the fraud’s complexity, the defendant’s criminal history, and the amount of money involved. For example, individuals convicted of insider trading may face fines of $30,000 to $5 million.

Some other potential penalties include:

Being incarcerated with a maximum penalty of 25 years in state or federal prison
Significant fines may begin at $10,000 for smaller fraudulent schemes or reach into the millions for large-scale financial crimes.

Additionally, if convicted of securities fraud in Ohio, individuals will be labeled as felons, which includes losing many of their civil rights, including the ability to vote, hold professional licenses, or legally own or possess firearms. Finally, the SEC may ban those convicted of securities fraud from working in financial institutions or any other investment-related capacity.

What Makes Watson Kuhlman, LLC the Right Choice for My Legal Needs?

Due to the severe consequences associated with securities fraud convictions, anyone facing state or federal charges must hire an investment fraud lawyer immediately. Government agencies such as the IRS and FBI must protect citizens from fraudulent activity and look to make examples out of those who break the rules.

When you come to Watson Kuhlman, LLC, for help with your legal problems, our team of dedicated professionals will use their years of experience to create custom defense strategies to obtain favorable results. Our Ohio investment fraud lawyer, Myron Watson, has significant experience assisting clients with business and securities litigation services.

Some of the most common defense strategies that we use to obtain proven results include:

Lack of intent: The prosecution must prove beyond a reasonable doubt that a defendant intentionally deceived or misled investors. A skilled investment fraud lawyer can present a defense that shows the defendant lacked intent or ill will and, therefore, the activity should not be considered fraudulent
Insufficient evidence: A common defense strategy used to fight securities fraud involves the defendant not contesting the crimes they are accused of committing. In this scenario, the prosecution is responsible for proving the defendant guilty. However, if the case lacks enough evidence, a defense attorney could request that the case be dismissed

Regardless of the charges against you, it is always wise in your best interest to hire an Ohio investment fraud lawyer who understands the complexities of state and federal laws and who will create an innovative defense strategy that works in your favor.

Myron Watson, an attorney at law, and the legal staff of Watson Kuhlman, LLC, are passionately committed to helping clients resolve their legal issues so that they can obtain the peace of mind they deserve and resume their lives. A qualified legal team member will gladly review your case and determine the best actions to protect your freedom and professional standing.

Contact our Cleveland area law firm today at (216) 208-7858 to schedule a free, no-obligation initial consultation.