If you are under SEC investigation for securities fraud, your freedom, assets, and professional reputation are on the line. You need a defense team that fights back.
Our securities fraud attorneys, Joshua Sabert Lowther, Esq. and Murdoch Walker, II, Esq., have spent their careers defending clients across all 50 states against the full weight of federal agencies like the SEC, FBI, and DOJ.
Schedule your confidential consultation to speak to a defense attorney about your securities investigation case today.
Securities fraud stems from a variety of deceptive practices in the stock or commodities markets. Legally, a person or entity commits securities fraud when they intentionally provide false information, or omit material information that induces an investor to make purchase or sales decisions.
Because these offenses violate both state and federal securities laws, including the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, charges are often brought by federal prosecutors who specialize in complex white-collar litigation.
This broad category of criminal activity includes:
Theft or embezzlement from investors.
Manipulation of stock prices.
Misstatements in a public company’s financial reporting.
Providing misleading information about mutual funds or bond funds.
Lying to corporate auditors.
Securities fraud is not limited to Wall Street boardrooms. Fraud encompasses a wide range of illicit activity on trading floors, including “front running” trades and violations of state “blue sky” laws.
The government uses a wide net to prosecute financial crimes. At Lowther | Walker, we have the forensic resources and legal experience to defend against every major category of securities fraud.
Federal regulators aggressively monitor the markets for suspicious timing. In the context of insider trading, fraud typically falls into two categories:
Corporate Insiders When an executive or employee trades stock based on material information that is not yet public.
Reporting Violations When an owner of 10% or more of a company’s shares trades without adhering to strict federal reporting requirements.
Often a focus in FINRA arbitration, “boiler room” fraud involves broker-dealers using high-pressure sales tactics to coax clients into questionable investments. These often involve micro-cap stocks or alternative investments sold purely for the benefit of generating commissions or defrauding the buyer.
One of the most biologically destructive allegations a financial professional can face is running a Ponzi scheme. In this scenario, an operator uses funds from new investors to pay “returns” to earlier investors, masking the fact that no legitimate profit is being generated.
Since the exposure of massive schemes like Bernie Madoff’s in 2008, federal agencies have been hyper-vigilant in investigating any investment structure that resembles this pattern.
This scheme involves artificially inflating the price of a stock, usually a micro-cap or “penny” stock, by selling large quantities or spreading false positive news. Once the price rises, the fraudster sells (“dumps”) their shares at a profit, leaving other investors holding worthless stock.
Since the Enron scandal, the DOJ has aggressively pursued corporate officers for accounting fraud. This involves falsifying financial reports or corporate documents to make a failing company appear profitable. We have successfully represented accountants, CFOs, and executives accused of misleading auditors and shareholders.
According to federal regulators, investors were defrauded out of $5.7 billion last year. With these stakes, the government is under immense pressure to secure convictions.
You cannot rely on a general practice lawyer for a federal crime.
The securities attorneys at Lowther | Walker maintain a dedicated, wide-ranging securities fraud practice. We have represented hundreds of professionals in securities-related litigation and have successfully defended clients against some of the largest broker-dealers and regulatory bodies in the country.
Why clients choose us:
Nationwide Reach: We represent clients in federal courts across the United States, from Atlanta to Los Angeles.
Forensic Capability: Our attorneys are specifically trained to analyze complex investment vehicles to determine if our clients are victims of systemic error rather than perpetrators of fraud.
Proven Results: We have a track record of challenging the government’s evidence in cases involving boiler rooms, insider trading, and corporate misconduct.
If you have received a target letter, a subpoena, or a visit from federal agents, the investigation is already underway.
Call Lowther | Walker at (404) 496-4052 immediately to fight back.
A conviction can result in a prison sentence of up to 20 or 25 years per count, depending on the specific statute violated (such as the Securities Exchange Act or wire fraud statutes). Additionally, the court may impose fines of up to $5 million for individuals ($25 million for corporations), order restitution to victims, and mandate asset forfeiture.
Because federal sentencing guidelines are complex, facing these charges without an experienced federal defense attorney can result in decades of prison time.
No, but they work with the people who can.
The Securities and Exchange Commission (SEC) is a civil regulatory agency, meaning they can only bring civil enforcement actions involving fines, disgorgement of profits, and bans from the securities industry.
However, the SEC frequently works in tandem with the Department of Justice (DOJ) and the FBI. If the SEC discovers evidence of willful fraud during their civil investigation, they will refer the case to federal prosecutors for criminal charges. This is known as “Parallel Proceedings,” where you fight a civil war and a criminal war simultaneously.
A Wells Notice is a formal letter from the SEC notifying you that their staff intends to recommend enforcement action (charges) against you. This is a critical juncture in your case. It provides you a narrow window of opportunity to submit a “Wells Submission”—a legal brief explaining why the charges should not be brought.
A persuasive Wells Submission drafted by defense counsel can sometimes convince the SEC to drop the case or reduce the severity of the charges before they are made public.
If you are contacted by federal agents, it is vital to know your status.
A Witness: Someone the government believes has information but is not suspected of a crime.
A Subject: A person whose conduct is within the scope of the grand jury’s investigation.
A Target: A person to whom the prosecutor or grand jury has substantial evidence linking to the commission of a crime. If you receive a Target Letter, an indictment is likely imminent, and you must contact Lowther | Walker immediately.
Not necessarily. Losing investors’ money due to market forces or bad business decisions is not a crime.
To prove securities fraud, the government must prove “Scienter”, that you possessed specific intent to deceive, manipulate, or defraud. A common defense strategy is “Good Faith,” demonstrating that you believed the information you provided was accurate or that you relied on the advice of professionals (like accountants or lawyers) when making disclosures.
Yes. In securities fraud cases, the government often seeks a Temporary Restraining Order (TRO) or an asset freeze to prevent the dissipation of funds. This can lock down your personal bank accounts, real estate, and business assets while the investigation is ongoing, making it difficult to pay for your defense or living expenses.
Lowther | Walker aggressively challenges these orders to release funds necessary for your legal defense and livelihood.
Generally, the statute of limitations for criminal securities fraud is five years, though schemes involving financial institutions (like bank fraud) can extend to ten years.
For civil actions brought by the SEC, the statute of limitations for seeking penalties is typically five years under 28 U.S.C. § 2462. However, prosecutors may attempt to extend these deadlines through Tolling Agreements or by alleging the fraud was a “continuing conspiracy” that did not end until recently.
Investigations often trigger from:
Whistleblowers: Under the Dodd-Frank Act, whistleblowers can receive financial rewards for reporting fraud, incentivizing insiders to report to the SEC.
Data Analytics: The SEC uses sophisticated data mining (like the ARTEMIS system) to spot suspicious trading patterns or abnormal investment returns.
Customer Complaints: A high volume of complaints to FINRA or state regulators often triggers a federal review.
These are two different financial penalties you may face.
Disgorgement: A civil remedy required by the SEC where you must repay any “ill-gotten gains” or profits derived from the fraud.
Restitution: A criminal penalty ordered by the court to compensate victims for their actual losses. In parallel proceedings, defense counsel fights to ensure you are not “double-billed” for the same funds in both civil and criminal courts.
Securities fraud is prosecuted in Federal District Court, which operates under entirely different rules of evidence and procedure than state courts.
Local lawyers who handle DUIs or state-level theft are rarely equipped to handle the Federal Sentencing Guidelines, complex financial forensics, and the discovery volume involved in an FBI or SEC investigation. You need a firm like Lowther | Walker that practices extensively in federal courts nationwide.
If you’re facing federal charges and prosecutors are closing in, call Lowther | Walker to fight back. Our defense lawyers are available 24/7 to respond to your urgent case questions.
