Insider trading is the trading of a corporation’s stocks, bonds, stock options or other securities by those with potential access to information about the company that is not public. Illegal insider trading constitutes a breach in the fiduciary or other relationship of trust or confidence where there is a misappropriation of non-public information from the company.
Who is an insider?
An insider is any of the following:
- A company’s officers
- Directors
- Any beneficial owner of more than ten percent of a class of the company’s equity securities
Essentially, when a corporate insider accepts employment, they are undertaking the legal obligations to shareholders to put the shareholders’ interest ahead of their own in matters relating to the specific corporation. Thus, when an insider buys or sells stocks based upon information only known within the company, they are violating this relationship with the shareholders.
Insider trading is regulating by the Securities Exchange Commission. Under the SEC Fair Disclosure regulation, a company must disclose non-public information to the public at large at the same time they intentionally disclose the information to one person.
The SEC aggressively investigates those they suspect of insider trading. If you feel the Securities and Exchange Commission is investigating you, do not wait until it is too late. Insider trading charges can be damaging both professionally and personally. Not only could you lose your job due to insider trading charges, but you can also face stiff penalties.
The Federal defense attorneys at the Strom Law Firm represent clients who are facing state and federal charges. With a former U.S. Attorney on staff, we know what it takes to adequately and aggressively defend you. Call the federal defense attorneys at the Strom Law Firm today for a free consultation. Do not wait until the verdict is in. The sooner we are hired, the faster we can work to help clear your name. Call us today at 803.252.4800.
