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What Are the Penalties for Securities Fraud in California?

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Have you been charged with securities fraud in California? If so, the potential consequences of your case can be overwhelming. From the initial investigation to any resulting court appearances and sentencing, it’s important to understand exactly what you are facing as well as how to best ensure a favorable outcome.

In this blog post, we’ll cover the different types of punishment associated with securities fraud in California and provide tips on navigating the judicial process. Knowing what penalties exist and taking control of your defense allows you to make more informed decisions when dealing with such serious charges.

Defining Securities Fraud in California

Securities fraud in California refers to any deceptive practice used by individuals or companies in connection with investment opportunities. This type of fraud is not only illegal but can also have devastating consequences for investors who fall prey to it. Securities fraud can take many forms, including:

  • Insider trading
  • Ponzi schemes
  • Misrepresentations about a company's financial health

The State of California takes securities fraud seriously and has put measures in place to ensure that those responsible are held accountable.

Criminal Penalties for Securities Fraud in California

The consequences of committing securities fraud in California are serious. Those found guilty of such a crime could face hefty fines, jail time, and even be forced to pay restitution to their victims. The state takes white-collar crimes incredibly seriously and is committed to prosecuting those who violate securities laws. The criminal penalties for securities fraud in California include the following:

  • Imprisonment – Up to five years in state prison.
  • Fines – Up to $10,000,000 in fines.

In addition, if you’re an issuer of securities and you’re convicted of securities fraud in California, you could face fines of up to $25,000,000.

Civil Penalties for Securities Fraud in California

In California, securities fraud is a serious offense that can carry civil penalties. As investor confidence is essential to the functioning of the securities market, the state has established regulatory bodies to ensure the fair and honest treatment of investors.

In cases of securities fraud, whether through insider trading or misrepresentation, civil penalties, like fines and restitution, may be pursued by both the state and private individuals. These penalties can be severe and have a lasting impact on the financial and reputational health of those involved.

What to Do if You’ve Been Accused of Securities Fraud in California

If you've been accused of securities fraud in California, it's important to act quickly and seek legal counsel immediately. Securities fraud is a serious offense that carries hefty penalties, including fines, restitution, and potentially even jail time.

It's crucial to have an experienced securities fraud attorney on your side who can protect your rights and work to reach the best possible outcome in your case. Your attorney can help you navigate the complexities of securities law, build a strong defense, and negotiate with the prosecution to potentially reduce the charges against you.

How to Fight a Securities Fraud Charge

Fighting a securities fraud charge can be a daunting and complex process, but with the right steps and guidance, it's possible to come out on top. First and foremost, it's important to seek out a skilled attorney who specializes in securities litigation. They can help navigate the intricacies of the legal system and create a personalized defense strategy. Common defenses for securities fraud charges in California include:

  • Lack of intent
  • Lack of knowledge concerning securities laws relevant to the situation

Additionally, gathering and organizing any evidence or documentation related to the case can strengthen your argument. Be prepared to cooperate fully with investigators and authorities, and don't hesitate to communicate with your attorney throughout the process. Remember, you have the right to defend yourself and protect your reputation against false accusations of securities fraud.

To learn more about defenses for securities fraud charges in California, give Appel & Morse a call at (805) 467-6060 or reach out to us online today for a free consultation with our securities fraud defense attorneys in California.

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