What is the Penalty for Insider Trading in New York?
New York is one of the most important financial centers on the planet, so it should come as no surprise that this state is no stranger to insider trading. While Wall Street is a symbol of the land of opportunity, it can also be a symbol of corruption and class division. Like it or not, many individuals in New York engage in insider trading. This not only denigrates the reputation of the entire financial system, but it can also result in serious penalties for guilty parties.
If you have been accused of insider trading or any other white collar crime in New York, it makes sense to get in touch with a qualified, experienced criminal defense attorney as soon as possible. The sooner you connect with a legal expert, the better your chances are. Work with a skilled lawyer, and you can approach this situation in an efficient manner while avoiding needless consequences.
The Definition of Insider Trading
Many people have a very vague understanding of what insider trading actually is, and it helps to gain a solid understanding of its proper definition. When someone trades stocks or securities based on material or information that has not been made available to the public, they are guilty of insider trading. This is seen as a crime because it gives the trader an unfair advantage over the average member of the population, since the trader has information about the company that no one else is aware of. This also allows them to make large profits and manipulate entire markets in their favor.
Note that you are not automatically an insider trader simply because you’re trading the stocks of a company you work for. Employees are only guilty of this offense if they trade stocks based on information that is not in the public domain. The SEC is responsible for detecting insider trading, and they do this with a number of sophisticated surveillance tools.
Penalty for Insider Trading
According to Federal law, the penalties for insider trading can be quite severe. A guilty party can be sentenced to up to 20 years in prison for this offense. In addition, they may face up to $5 million in fines. If an entire company faces these accusations, it may be ordered to pay up to $25 million in fines. In addition, these penalties can become even more severe if certain aggravating factors are present.
A Recent Example of Insider Trading
In early 2020, New York congressman Chris Collins was sentenced to 26 months in prison after pleading guilty to conspiring to commit securities fraud. This came after Collins illegally told his son about a biopharmaceutical company’s failed drug trial, encouraging his son to use this information to his advantage in the stock market.
Enlist the Help of a Qualified Attorney Today
While the penalties for insider trading can be quite serious in New York, you can still approach this situation with confidence. Reach out to New York criminal defense attorney Phillip J. Murphy, Attorney at Law, and you can get all the help you need as you fight for your rights and freedoms. We have considerable experience with a wide range of criminal cases, and we can help you approach this situation in an effective manner. Reach out and book your consultation today.