Federal Financial Crimes Involving the SEC

The Securities and Exchange Commission(SEC) is an independent government agency that has three main missions. It oversees and enforces efficient markets, protects investors, and facilitates capital formation.

If you have been accused of any Michigan federal financial crimes involving the SEC, contact a Michigan federal criminal lawyer immediately. Such offenses are approached aggressively by the government. An experienced financial crimes lawyer could help minimize or drop the charges that have been brought against you.

The Federal Bureau of Investigation (FBI) investigations focuses more on market manipulation, cyber intrusion, and Ponzi schemes. A Ponzi scheme is a form of fraud whereby an entity uses funds from new investors to pay back old investors. They investigate the investment of funds in suspect operations or the siphoning of funds for other purposes.

Michigan federal financial crimes involving the SEC focus primarily on stocks, bonds, and trades. Their role is to ensure that companies offering stocks are truthful about their business, and the risks of investing in their business. They also want to ensure that those who sell and trade stocks treat investors fairly.

The SEC prohibits companies from engaging in insider trading. Insider trading is when an individual uses confidential information to make make stock trades or sales for their own benefit. Most Michigan federal financial crimes involving the SEC, are related to insider trading.

The Regulation of Fair Disclosure is a law which was created to combat insider trading. It requires all publicly-traded companies to disclose the same material information to all investors at the same time.

Transparency is the extent that investors have access to information of a company. Transparency information includes sharing documents such as financial reports. Nowadays, with the increase in the use of the internet, it is expected that companies make their information readily available.

In 2013, the SEC decided companies may use social media to disseminate their information if certain requirements are met. The SEC informed companies that they can go on the Internet and reveal this information and absolve themselves from the argument that they are not being fully transparent. Any possibility of insider trading is wiped away when a company is completely transparent with all of its information.

Being involved in financial crimes involving the SEC can be easily avoided, but not all companies wish to disclose their information publicly. Any time a company engages in an activity to conceal potentially damaging information from portions of the public, they are subject to closer scrutiny for matters related to insider trading.

Company owners who want to engage in public traded companies are required to comply with the Regulation Fair Disclosure rules. However, in some instances, making company information public is detrimental because it illustrates that the company is not doing well. If this is the case, an individual should talk to an attorney who could advise them on how to move forward. Alternatively, if an individual decides their company is ready to go public, a lawyer could tell them how to reveal potentially-damaging material. If an individual wants to know more about Michigan federal financial crimes involving the SEC, they should speak with an attorney that could help