What is insider trading and why is it illegal?

Insider trading is deemed to be illegal when the material information is still non-public and this comes with harsh consequences, including both potential fines and jail time. Material nonpublic information is defined as any information that could substantially impact the stock price of that company.

What type of insider trading is illegal?

Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, nonpublic information about the security.

What are the rules for insider trading?

An Insider should never trade the Company’s stock while you are in possession of material, nonpublic information about the Company. Additionally, you should not discuss or reveal such “inside information” about the Company to anyone, except as strictly required for a legitimate Company business purpose.

What is the criminal penalty for insider trading?

The maximum sentence for an insider trading violation is 20 years in a federal penitentiary. The maximum criminal fine for individuals is $5,000,000, and the maximum fine for “non-natural” persons (such as an entity whose securities are publicly traded) is $25,000,000.

Can you buy stock in a company your family works for?

The more infamous form of insider trading is the illegal use of non-public material information for profit. 1 It’s important to remember this can be done by anyone including company executives, their friends, and relatives, or just a regular person on the street, as long as the information is not publicly known.

Are you being investigated for insider trading? Perhaps you should have a consultation with Alex Truluck. Alexander Truluck focuses his practice as a criminal defense attorney in Clearwater, Palm Harbor, Largo, Dunedin and the Tampa Bay area.

For more information, visit our website at http://www.criminallawyerclearwaterflorida.com
or call (727) 799-3550.

We all spend a lot of time watching criminal proceedings on TV. (We don’t very often watch TV shows about blog posters). The public in general is fairly informed about criminal proceedings. However, there might be some incorrect assumptions.

You may assume that your case will be dismissed if they did not read you your Miranda rights. This is not necessarily true. If they got you to give incriminating evidence when  interrogating you, that information cannot be introduced at trial. Normally after you have been arrested and before you are interrogated, you are read your Miranda rights. However, if they miss that step, that doesn’t mean you are off the hook.

You may assume that you will not be prosecuted if there is no DNA evidence in your case. This is not necessarily true. There are lots of types of evidence. There are witness statements and expert witness testimony. There may be surveillance video. There may be incriminating statements made by the accused. DNA is not the only game in town.

You may assume that the prosecutor has to prove motive. It is certainly extremely helpful to the prosecutor’s case if they can prove motive. However, if there is compelling evidence, the motive may not be necessary. Prosecutors are obviously going to try to establish the state of mind of the accused. They will discuss include intentional, knowing, recklessness (or gross negligence), negligence, or even unintentional acts. But they may have to use speculation.

The best way to get a solid legal defense is to consult with a criminal law attorney that practices specifically in Florida.

Alexander Truluck focuses his practice as a criminal defense attorney in Clearwater, Palm Harbor, Largo, Dunedin and the Tampa Bay area. For more information, visit our website at http://www.criminallawyerclearwaterflorida.com
or call (727) 799-3550.