Types of White Collar Crimes and Cases

White collar crimes are those that are commonly attached to businesses and business employees. The most common type of California theft is white collar crime. The difference between regular theft and white collar theft is that force or fear may be used in the commission of a regular theft, or regular theft may refer to unsophisticated, crude, impulsive acts. White collar crime is different, and usually refers to criminal acts that are more sophisticated or complex. This crime is the use of trickery or fraud rather than force or fear to convince an individual to entrust property to the thief. Typically, the victim of white collar crime is not the subject of violence, and he or she is generally not in fear of violence when unknowingly giving property to a thief.

Common forms of white collar crimes include larceny by false pretenses, embezzlement, trickery, and fraud. These are known as the common law offenses. However, there are wide-ranging white collar crimes that extend beyond the state of California and go into the realm of federal regulation.

A person accused of using unfair and deceptive trade practices can be prosecuted on either the state or the federal level, since California’s unfair and deceptive practices statutes draw heavily on the federal statutes. Unfair and deceptive trade practices cover such acts as false advertising. These statutes were developed with the essential purpose of protecting the consumer.

Securities and commodities are regulated by both the state of California and the federal government. Today, most of California’s rules mirror those of the federal law. For the most part, the Securities Exchange Acts that exist today are, in effect, protections for the integrity of the market. These protections create an even playing field for investors, which results in an open exchange of information. In other words, people who want to invest in the market do not have to be business insiders to make decent investment decisions. For this reason, audits and profit reports must be true and accurate. Further, insider trading is illegal. Insider trading is the buying, selling or trading of stocks based on information that is not known to the public. It is completely illegal for someone to trade stocks based on non-public information.

Securities laws are often extremely complex, and can hinge on the smallest details. It takes an extremely detailed and experienced lawyer to fight for a client against the resources of the state’s Attorney General or the SEC. The Kavinoky Law Firm can help now. Call for a free consultation and case evaluation.

Other white collar crimes include tax violations, regulatory, health, or environmental violations. Anti-trust is another white collar crime, but it is not exactly the type of crime a typical small business owner can commit. It is generally reserved for the giant corporations.

Fraudulently acquiring investments or business opportunities are white collar crimes. So is real estate fraud and construction fraud. While many of these crimes seem harmless, they are not. There are typically many victims who are left with nothing as the result of a white collar crime. The state or the federal governments are vigorous in prosecuting these crimes because they are trying to maintain the integrity in everyday business deals that the economy depends on. Therefore, it is crucial to find attorneys who will defend you more even vigorously than you will be prosecuted. The Kavinoky Law Firm will be of valuable assistance to you.

Registration Relief

Sex Offender Registration

Although California sex crimes can subject the accused to lengthy prison sentences and heavy fines, perhaps the most brutal penalty (because of its social stigma) that such an individual faces is registration as a sex offender, pursuant to Penal Code 290. California Penal Code 290 provides that an individual who is required to register as a sex offender does so for the rest of his or her life while residing, working or going to school in this state. Upon registration, he or she must pay $300 for a first conviction and $500 upon a second or subsequent conviction, to the Department of Justice in addition to any fines imposed in the current case.

The sex offenses that require registration include spousal rape when accomplished or attempted using force, violence or threats, most instances of rape, rape or sexual penetration when acting in concert with another, pimping and pandering with a minor, enticing a female unmarried minor into prostitution, procuring a child under 16 years of age for lewd or lascivious acts, committing a sex act where consent was procured by fear and false representations, aggravated sexual assault of a child, abducting a minor for prostitution, incest, lewd or lascivious acts with a child under 14, continuous sexual abuse of a child, sodomy, oral copulation, penetration with a foreign object, indecent exposure, certain crimes dealing with obscene materials, using harmful matter to seduce a minor, and conduct involving lewd or lascivious acts that fall under “contributing to the delinquency of a minor”.

The accused must personally register his or her primary address (or addresses if the accused has more than one address where he or she regularly resides) with his or her local law enforcement agency within 5 days of the requirement. A student or employee of a college or any other institution of higher learning must meet that same requirement and must also register with the campus police department (if there is one) within 5 days of the requirement, within 5 days of commencing enrollment or employment at such an institution, and within 5 days of leaving such an institution. All individuals are also required to update their information yearly, within 5 days of their birthday. An individual labeled a “sexually violent predator” (that is, one who has committed a sex offense by means of force, violence, duress or threats, and who has been diagnosed with a mental disorder that makes the accused a danger to the health and safety of others) is required to update his or her information every 90 days. The registering agency then passes the information along to the Department of Justice Violent Crime Information Network. People who live out-of-state but work in California must register in the same manner if they are registered sex offenders in the state in which they live. Changes of address or name changes must be reported within 5 days to one’s local agency as well. In addition, if an individual who has registered as a sex offender in California moves, he or she may further be required to register in any other state where he or she relocates. Failure to follow any of these requirements within the specified timeframe will be penalized with an additional criminal charge of either a misdemeanor or felony, depending on how the original charge was filed, punishable by up to one year in the county jail and fines up to $1,000 for a misdemeanor, or by 16 months or two or three years in state prison for a felony.

The consequences of registering as a sex offender are life changing. When charged with a California sex crime, it is critical that the accused hires a criminal defense lawyer who specializes in this unique area of the law in order to defend against this severe penalty. The exceptional criminal attorneys at The Kavinoky Law Firm have mastered California sex crime defense and have successfully defended countless individuals, treating each with compassion and respect. For an unparalleled defense, contact them at one of their Los Angeles or other California law offices today for a free consultation.

Expunging Sex Crimes From One’s Criminal Record

Expunging Sex Crimes From One’s Criminal Record

Crimes in California fall under three main categories: Misdemeanors, felonies and wobblers. The expungement of one’s criminal record that contains a sex crime conviction may be possible, depending on the category under which the sex offense was sentenced. If seeking such relief, it is absolutely necessary to hire a skilled criminal defense lawyer who is familiar with the ways in which expungements are permitted, and who knows the most effective ways to convince the court that this type of relief is appropriate.

Expunging one’s record essentially means clearing one’s record. It is a process by which an individual’s court file is sealed, allowing an individual to honestly claim, under most circumstances, that he or she has no criminal history. Expungement is most useful to those desiring gainful employment, housing security, funding for higher education, and simple peace of mind.

Those who were convicted of California sex crimes (either misdemeanors or felonies without a prison sentence, where probation was granted) may be entitled to an expungement. Under these circumstances, an individual may be permitted to withdraw his or her Guilty or No Contest plea to enter a Not Guilty plea, or will have his or her guilty verdict set aside if convicted following a trial. If the defendant’s probation was terminated early at the request of his or her attorney or expired after the defendant met all of his or her obligations, if he or she is not on probation for or serving another sentence and is not charged with another offense, the court must dismiss the underlying charge. If, however, the offender incurred a violation while on probation, it is within the court’s discretion whether or not to grant the expungement.

For procedural and strategic reasons, a knowledgeable defense attorney will likely ask the court to reduce a wobbler to a misdemeanor prior to moving for the expungement, as it is better to have a dismissed misdemeanor on one’s record than a dismissed felony. It must be noted, however, that even if a wobbler is reduced, if it originally counted as a “strike” under California’s Three Strikes Law, it will continue to do so.

Although it has many benefits, having one’s conviction expunged does not completely cleanse one’s record. There are a variety of circumstances where an individual must still disclose the conviction, and these include applying for licensure by any state or local agency, contracting with the California State Lottery, and applying for public office. Perhaps most significant is the fact that an expungement does not relieve one’s requirement to register as a sex offender, pursuant to Penal Code 290 if previously ordered to do so. Finally, there are certain sex offenses (for example, distributing obscene materials to a minor) that, if committed more than once, automatically rise from misdemeanors to felonies. Even if an individual’s record is expunged, that prior offense will still count towards the enhanced sentence.

Those who have incurred felony convictions for their sex crimes that resulted in state prison sentences are ineligible for expungement and must apply for either a certificate of rehabilitation and/or a full pardon. Certificates are available to those who have been California residents for at least three years, and who have lead an honest life, free from criminal convictions for a specified amount of time, determined by the underlying offense. If approved, the governor receives a copy of the certificate, which becomes an application for a pardon. Certain sex crimes are excluded from this relief, and an individual convicted of such an offense must directly apply for a pardon. Pardons are reserved for those who have demonstrated exceptional reform.

An individual who wishes to pursue a sex crime expungement must contact a qualified California sex offense attorney. The experienced sex crime defense lawyers at The Kavinoky Law Firm know the most effective ways to apply for relief and will guide their clients employing the utmost skill and diligence. For unparalleled assistance in expunging one’s sex crime conviction, contact them today for a free consultation.

Statute of Limitations

California’s Statute of Limitations Relating to Sex Offenses

A statute of limitations is a certain time allowed by law that a prosecuting agency has to commence prosecution, which means that the prosecution of a criminal case will be barred if the case isn’t filed within the statutory period. The statute of limitations varies, depending on the maximum sentence of the underlying sex crime, and on the specific facts of the case. When determining which statute applies, the law looks to the maximum punishment allowed by law, regardless of the punishment that is actually sought or imposed, and enhancements do not factor into that calculation. If more than one time period applies to the same offense, the controlling time will be the period that expires last.

An experienced sex crime defense attorney is aware of the statute of limitations for each offense, and will immediately move to dismiss a case that is beyond the specified period. The exceptional attorneys at The Kavinoky Law Firm pride themselves on their thorough reviews of every case, which allows them to determine the defenses that are most likely to ensure favorable outcomes for their clients.

Although there is quite a bit of variation, the general statutory schedule relating to California’s sex offenses is as follows:

The prosecution of a felony that is punishable by eight or more years in state prison (for example, most instances of rape, some crimes relating to obscene materials, and certain acts of sodomy or oral copulation) must typically be commenced within six years of the offense. However, if the crime is a felony offense that requires sex offender registration, pursuant to California’s Penal Code 290, the prosecution must be commenced within ten years of the offense. With respect to these crimes, an additional extension applies when DNA evidence is involved. The prosecution of one of these felonies in which DNA conclusively establishes the identity of a suspect may be commenced within one year of that finding if the offense was committed on or after January 1, 2001, and biological evidence collected in connection with the offense is analyzed for DNA type no later than two years after the date of the offense.

If the alleged felony offense is for rape, sodomy, lewd or lascivious acts, continuous sexual abuse of a child or oral copulation, and the victim was younger than 18 years of age at the time of the offense, the prosecution may be commenced at any time prior to the victim’s 28th birthday. Similarly, the statute of limitations may be extended by one year (if necessary) when a person of any age makes a report to a California law enforcement agency that he or she was the victim of rape, sodomy, lewd or lascivious acts, oral copulation, continuous sexual abuse or forced penetration as a minor. This extension may take place if the generally applicable statute of limitations expired, if the crime involved substantial sexual conduct, and if there is corroborating evidence to support the allegation. It must be noted that if the person reporting is 21 years old at the time of the report, the corroborating evidence must be clear and convincing.

If the charged felony offense is for employing a minor to pose for or perform obscene sexual acts, the prosecution must be commenced within 10 years of the date of production of the pornographic material.

Finally, the prosecution of misdemeanor sex crimes must typically be commenced within one year of the offense.

For more information on the statute of limitations concerning a specific sex crime, contact the knowledgeable and experienced California sex crime defense attorneys at The Kavinoky Law Firm today for a free consultation and for unsurpassed legal representation.

Top 10 myths about sex offenders

The social stigma that attaches when someone has only been charged with a sex crime makes it almost impossible to receive a fair trial. The skilled criminal attorneys at The Kavinoky Law Firmspecialize in California sex crime defense and know the most effective ways to dispel the myths that pervade our society, to ensure that their clients receive fair consideration from skeptical judges and jurors.

The following are the top 10 myths that our society readily believes regarding sex offenders.

1. All child molesters are pedophiles.
Fact: Child molesters do so for a variety of reasons, often unrelated to sexual desires. Their victims may be incidental and their primary sexual orientation may even be towards adults. They may molest a child to meet an unmet emotional need.

2. All pedophiles are child molesters.
Fact: Pedophiles have a strong sexual desire towards children but many are content fantasizing in private. Many rely on pornographic materials to fulfill their fantasies in the safety and comfort of their own home, never actually molesting a child.

3. Child pornography collectors molest children.
Fact: Some child molesters use child pornography – not all child porn collectors molest children. Research reveals that many child molesters aren’t stimulated by child porn and (if they collect pornographic materials at all) actually collect adult porn. There is no evidence to suggest that sex offenders use pornography with any more frequency than non-offenders.

4. All convicted child molesters re-offend.
Fact: A convicted child molester may have molested a child because of poor self-esteem, due to a perceived inability to be close with an adult partner or to escape feelings of powerlessness and loneliness. Many molest due to a specific circumstance and not based on an ongoing need.

5. The more serious the initial offense, the more likely the person will re-offend.
Fact: This is perhaps one of the most commonly exploited myths – and easy to dismiss with research and reports. Recidivism (relapse) rates for sex offenders are lower than for the general criminal population and rape (one of the most severe sex crimes) has an extremely low relapse rate.

6. All convicted rapists re-offend.
Fact: This, too, is a largely publicized, political fear-tactic that has no bearing on reality. Convicted rapists have one of the lowest recidivism rates among criminals, and the only group that is lower is convicted murderers.

7. Most sexual assaults are committed by strangers.
Fact: Regardless of whether the victim is an adult or a child, the fact is that most sexual assaults are committed by an individual known to the victim or to the victim’s family. 9 out of 10 rape or sexual assault acts involve a single offender who had a prior relationship with the victim as an acquaintance, intimate partner or family member.

8. Indecent exposers are rapists waiting to happen.
Fact: This is a huge leap. Indecent exposers (also known as flashers) reportedly engage in such behavior to feel validated. Many believe that they are performing a harmless act and that flashing is a victimless crime.

9. Punishment is the best deterrent.
Fact: Certain types of rehabilitation have a much better deterrent effect on recidivism than punishment. The fact is that longer prison sentences have a higher recidivism rate than shorter sentences – those more than 2 years increased the rate and those less than 6 months had no effect on the rate. Research supports that cognitive-behavioral therapy is the best treatment for adult offenders (focusing on the social influences, values and habits that contribute to these crimes, teaching techniques to cope) and that systematic therapy is the best treatment for adolescent offenders (focusing on the needs of family and other social systems that influence these offenders, including peers and school).

10. Treatment for sex offenders doesn’t work.
Offenders who successfully complete treatment programs re-offend less often and less seriously than those who receive no therapy – period. Research continually reveals that sex offenders can be successfully treated.

To learn more, contact the outstanding sex crime defense lawyers at The Kavinoky Firm for a free consultation.

Hit-and-Run-Causing Death

Hit-and-Run-Causing Death

Drivers who leave the scene of an accident in California can face hit-and-run charges even if they are not at fault. The severity of the charges depends on many factors, such as whether the accident involved property damage, injury, or death. Regardless of the circumstances, hit-and-run is a very serious charge that requires expert legal representation. The skilled defense lawyers of The Kavinoky Law Firm are experienced in every aspect of California hit-and-run cases, and will work very hard to protect the accused driver’s rights and freedom.

California Hit and Run Law

Leaving the scene of a fatal accident is an extremely serious charge in California. A driver convicted of hit-and-run causing death faces from three months in county jail to up to four years in state prison. The driver also faces a fine of up to $10,000, a one-year driver’s license revocation, probation, and possible vehicle seizure.

In some cases, a driver involved in a fatal hit-and-run accident can face even more serious charges such as manslaughter or vehicular homicide. And if alcohol or drugs were involved, the driver may face an additional charge of DUI / DWI or driving under the influence of drugs.

However, a hit-and-run charge doesn’t equal an automatic conviction – far from it. There are many effective defenses to a charge of leaving the scene of an accident. It’s important to remember that the prosecutor is required to prove his or her case beyond a reasonable doubt in order to obtain a conviction. That means the prosecutor has the burden of convincing all 12 jurors of the driver’s guilt. The defense is under no burden to prove anything other than to prove the prosecution’s case is faulty.

Hit-and-run cases involving death are extremely complex and technical, and typically involve a great deal of physical evidence. In many cases, the assistance of an experienced accident reconstructionist can uncover evidence overlooked by police that can help the defendant’s case.

In some cases, the defense may be better off negotiating a plea bargain rather than taking a charge of leaving the scene of an accident to trial. Plea bargains sometimes offer a satisfactory resolution to a hit-and-run charge involving death. It may be possible for the driver to plead guilty in exchange for reduced charges and/or punishment. In some cases, alternative sentencing may be available that can reduce or even eliminate a jail sentence.

A California Defense Attorney is Vital

There are many viable criminal defense strategies to a California hit-and-run charge involving property damage, injury or death. The experienced Criminal Defense Lawyers of The Kavinoky Law Firm are skilled in every aspect of defending charges of leaving the scene of an accident, and will develop a proven defense strategy designed to safeguard the driver’s rights and minimize the consequences. Contact them today for a free consultation.

Turning stress into success: Treatment is a powerful defense against a drug or alcohol arrest.

Jail Distress

Being arrested for drug possession or an alcohol related infraction is a very stressful and difficult time. You are likely feeling fearful, defeated, and perhaps even regretful. Often when an individual is arrested for a drug or alcohol crime it is becomes the impetus for them to seek drug or alcohol treatment.

Seeking substance abuse treatment at this time is usually a very good idea. The drug or alcohol situation which led to the arrest has already caused significant problems in a person’s life ahead of the actual legal problem. Family, job related or personal struggles have often already come to light and your recent arrest is “the icing on the cake” so to speak. At this point going to treatment is a good idea, even if it is only to fix your legal troubles. You do not have to be at “rock bottom” to reap the benefits of drug or alcohol counseling. The treatment you will receive will do more than just aim to keep you off of substances, it helps improve your life, and can be a powerful tool in your legal defense.

Judges tend to look very favorably upon people who take the initiative to get a counseling or treatment plan in place ahead of their initial court appearances. It shows the judge that you sincerely see the problems that your substance abuse is causing you and society and that you want to change. Judges look for remorse, they look for the willingness to admit that you screwed up and are taking the steps to prevent a similar event in the future.

Judges also understand that often treatment becomes a necessity due to an arrest, they know that you may not even think you have a problem, or that you may not be ready to stop. However, by going to drug treatment, instead of serving jail time, judges know that you will have a much lower repeat offender rate and also save their state or municipality money in the long term. Treatment is much less expensive for society than a drawn out trial and period of incarceration. Statistics show that for every $1.00 spent on treatment saves about $7.00 in criminal justice costs. This is a motivating statistic for the courts, they want you in treatment, not jail or wrapped up in the justice system.

In treatment you will learn how substance abuse affects you. The counselors and fellowship around you will help you understand whether you are an addict, abuser or casual user who went over the edge. You will also find ways to cope with substance abuse, you will learn how to stay clean, sober and out of trouble and also how to enjoy your life without the use of mind altering chemicals. By learning these powerful lessons, you will be able to move on with your life as a more knowledgeable person and rise above your substance abuse and legal problems. Usually, your family life, work performance and personal struggles will get much better, almost immediately. This is good for you, for society, and for those who love you. Treatment is an excellent option, and one the courts will look favorably upon.

Release Conditions in Sex Offense Cases

When arrested for a California sex crime, the accused is permitted to post bail, to be released on his or her own recognizance (also referred to as OR release) or the offender will be denied bail, based on the specific crime or crimes alleged. Whether or not the individual’s bail may be modified without a hearing will also depend on the charged offense. An experienced sex crime defense attorney is the key to navigating this system with ease and understanding.

The bail for certain sex offenses will be set according to a bail schedule. These offenses include those that involve obscene materials, rape (when the alleged victim is incapable of consenting due to a mental or physical disorder or when he or she is unconscious, under the influence or submits under the false belief that the perpetrator is his or her spouse), statutory rapespousal rape (when the alleged victim is under the influence or unconscious or is threatened by incarceration or deportation), oral copulation (with a minor over 14 or under the circumstances described above under rape), sodomy (with a minor over 14, under the same circumstances or when threatened by incarceration or deportation), sexual penetration (under the same circumstances), indecent exposureprostitutionpimping, panderingbigamy,incest, sexually assaulting an animalabduction for marriagecontributing to the delinquency of a minor or situations where a public entity employee engages in sexual activity with an involuntarily committed resident.

With respect to the above offenses (some being misdemeanors, some being felonies), the bail may be modified upon an application that may be submitted by the arresting officer, by the defendant or by anyone on his or her behalf. Public safety will be the main consideration for the court in determining whether or not to raise or lower the set bail or whether to release the accused OR.

Certain sex crimes require that a hearing be held before the accused may have his or her bail modified. These crimes include lewd or lascivious acts with a child under 14sexual penetration with a child under 14 who is also more than 10 years younger than the accused, and the continuous sexual abuse of a child. When a hearing is held, the judge will primarily consider public safety, but will also consider the defendant’s flight risk, his or her prior criminal history and the severity of the pending case. When considering these issues, the judge presumes that the accused is guilty, which is another reason why it is imperative for the accused to have a skilled criminal defence attorney who knows how to persuade the judge otherwise..

There are certain sex offenses where bail doesn’t apply, because they are considered so serious. These include rape, spousal rapeoral copulation,sodomysexual penetration or lewd or lascivious acts performed on or with a child under 14 where force or threats were used to accomplish any of these acts, or where the accused acted in concert with another while committing or attempting to commit these offenses.

If arrested on a bailable offense and denied an OR release, the accused can elect to post cash bail or a bail bond. If the accused posts cash bail, he or she remits the full bail amount, which will be returned at the conclusion of the case if he or she attends all court appearances. If the accused posts a bail bond (the more commonly-used option), he or she pays a bail agent or bondsman 10% of the bail amount and the agent then pays the rest. The bondsman may also require additional collateral, which he or she may keep or sell if the bond isn’t refunded at the conclusion of the case due to the defendant’s failure to appear.

The outstanding attorneys at The Kavinoky Law Firm are unsurpassed in California sex crime defense. They are dedicated to helping their clients get released from custody as quickly and inexpensively as possible, and providing the best defense throughout the entire criminal court process. Contact them today for a free consultation.

 

Hit-and-Run–Property Damage

It’s a crime in California to leave the scene after being involved in or causing an accident. Any driver who does so can be charged with misdemeanor or felony hit-and-run. The severity of the charges depends on whether the accident involved property damage, bodily injury, or death. Regardless of the charges, it’s imperative to have an expert defense attorney protecting the driver’s rights. The skilled defense lawyers of The Kavinoky Law Firm are experienced in every aspect of defending California hit-and-run cases, and will work hard to minimize or even eliminate the consequences for a driver charged with leaving the scene of an accident.

Leaving the scene of an accident that involves only property damage is a less serious offense in California than hit-and-run involving bodily injury or death, but the driver still faces serious repercussions. A driver convicted of hit-and-run with property damage – even if the driver didn’t cause the accident – faces punishment up to a $1,000 fine and six months in jail. In some cases, the driver also must forfeit the vehicle.

If the driver is alleged to have been under the influence of alcohol or drugs at the time of the hit-and-run crash, there may be a DUI / DWI charge in addition to any allegations of leaving the scene of an accident. A motorist convicted of drunk driving and hit-and-run faces extreme consequences that can include prison time. These are extremely serious charges that require an expert defense attorney.

Fortunately, a driver who is accused of leaving the scene of an accident in California has many options available that may help to soften or even eliminate the consequences of a hit-and-run charge. The first option is to aggressively fight the charges. There are many viable defenses to a California hit-and-run charge. Remember, the prosecutor has the burden of proving the driver’s guilt beyond a reasonable doubt. The defense could offer no evidence at all of the driver’s innocence, and if the prosecutor hasn’t proven the case beyond a reasonable doubt, the driver cannot be convicted.

In some cases, it may be possible to reach what is known as a civil compromise, in which the accused driver agrees to pay for all property damage and medical expenses, if any. If the other party agrees to a civil compromise and the accused driver reimburses all expenses, no criminal charges will be filed in connection with the alleged hit-and-run accident.

Certain cases require creative resolutions on the part of both the defense and the prosecution. The driver may be eligible for alternative sentencing such as community service or other options that can reduce or even eliminate a potential jail sentence. Other options may include CalTrans work or electronic monitoring. Although some sentencing alternatives may seem less than desirable, anything that helps the accused hit-and-run driver avoid time in jail is well worth considering.

Another option in a California hit-and-run case is a plea bargain. With the help of an experienced defense lawyer, the driver may be able to plead guilty to a lesser charge with reduced repercussions. However, a plea bargain should be just what the name implies – a good deal for both the driver and the prosecutor. The prosecution is more likely to offer a favorable plea bargain when it’s case isn’t particularly strong.

Regardless of the circumstances surrounding a California hit-and-run arrest, the experienced defense lawyers of The Kavinoky Law Firm will be able to reduce or even eliminate the consequences. Contact a skilled defense attorney today for a free consultation.

Securities Fraud

Securities fraud, also known as stock or investment fraud, is the practice of using false information to entice investors to part with their money. Securities fraud typically results in substantial losses to investors and violates a number of federal laws. If you’ve been accused of securities fraud, it’s imperative that you contact an experienced California defense lawyer from The Kavinoky Law Firm today to begin mounting an aggressive defense.

Securities fraud cases are almost always prosecuted by the federal government rather than state authorities. The consequences of a securities fraud conviction include large fines, restitution payments and sometimes even jail or prison time.

In addition to deceptive practices in the stock and commodity markets, securities fraud also includes outright theft from investors and misstatements on a public company’s financial reports. The term also encompasses a wide range of other actions, including insider trading and front-running and other illegal acts on the trading floor of a stock or commodities exchange.

Securities fraud can also include intentionally false information on a company’s financial statement and Securities and Exchange Commission (SEC) filings; lying to corporate auditors; insider trading; stock manipulation schemes, and embezzlement by stockbrokers.

Corporate Fraud

Corporate securities fraud often involves allegations of insider trading and/or of making false statements about a company’s financial performance. Fraud by high-level corporate officials at companies such as Enron, WorldCom, and Tyco have garnered enormous attention in recent years, and prompted federal officials to launch an “aggressive agenda” against corporate fraud. FBI Director Robert Muller predicted in April of 2008 that corporate fraud cases will increase because of the subprime mortgage crisis.

Internet Fraud

Internet fraud exists in many forms, including pump-and-dump schemes, in which false and/or fraudulent information is disseminated in chat rooms, forums, internet boards and via e-mail (spamming), with the purpose of causing a dramatic price increase in thinly traded stocks, or stocks of shell companies (the “pump”).  When the price reaches a certain level, criminals immediately sell off their holdings of those stocks (the “dump”), realizing substantial profits before the stock price falls back to its usual low level. Any buyers of the stock who are unaware of the fraud become victims once the price falls.

The SEC reveals that Internet fraud resides in several forms, such as the following:

* Online investment newsletters that offer seemingly unbiased information free of charge about featured companies or recommending “stock picks of the month” are sometimes used for fraud.

* Bulletin boards that often contain fraudulent messages by hucksters.

* E-mail spam from perpetrators of fraud.

Insider Trading

Insider trading is the trading of a corporation’s stock or other security by corporate insiders that may include company officers, key employees, directors, or holders of more than ten percent of the firm’s shares. Some insider trading is illegal. In illegal insider trading, an insider or a related party trades based on non-public information obtained during the performance of the insider’s duties at the corporation, or otherwise misappropriated.

Microcap Fraud

In microcap fraud, stocks of small companies of under $250 million market capitalization are sold fraudulently to the public. Its prevalence has been estimated to run into billions of dollars each year. Microcap fraud includes pump-and-dump schemes involving “boiler rooms” and scams on the Internet. Many, but not all microcap stocks involved in frauds are penny stocks, which trade for less than $5 a share.

Accountant Fraud

In 2002, a wave of separate, but often related, accounting scandals became known to the public in the U.S. All of the leading public accounting firms—Arthur Andersen, Deloitte & Touche, Ernst & Young, KPMG, PricewaterhouseCoopers— and others have admitted to or have been charged with negligence to identify and prevent the publication of falsified financial reports by their corporate clients, which had the effect of giving a misleading impression of their client companies’ financial status. In several cases, the monetary amounts of the fraud involved are in the billions of dollars.

Boiler Rooms

So-called boiler rooms are stock brokerages that put undue pressure on clients to trade using telesales, usually in pursuit of microcap fraud schemes. Some boiler rooms offer clients transactions fraudulently, such as those with an undisclosed profitable relationship to the brokerage. Securities sold in boiler rooms include commodities and private placements as well as microcap stocks.

Mutual-Fund Fraud

A number of major brokerages and mutual fund firms have been accused of various deceptive acts that disadvantage customers, including late-trading and market-timing. Various SEC rules were enacted to curtail this practice.  Bank of America Capital Management was accused by the SEC of having undisclosed arrangements with customers to allow short-term trading

Short-Selling Abuses

Abusive short-selling, including certain types of “naked” short-selling, is also considered securities fraud because it can drive down stock prices. In abusive naked short-selling, stock is sold without being borrowed and without any intent to borrow.  The practice of spreading false information about stocks, to drive down their prices, is called “short and distort.” During the takeover of The Bear Stearns Companies by J.P. Morgan Chase in March of 2008, reports swirled that shorts were spreading rumors to drive down Bear Stearns’ share price. Sen. Christopher Dodd, D-Conn., said this was more than rumors, and said, “This is about collusion.”

ARE YOU ACCUSED OF ENGAGING IN SOME
FORM OF SECURITIES FRAUD?

If you have been accused of engaging in any type of securities fraud, a skilled California attorney from The Kavinoky Law Firm can help. Being accused of – and, in the worst case, convicted – of securities fraud violations can jeopardize your entire future.  Oftentimes securities fraud violations are considered to be crimes of moral turpitude, or extremely dishonest conduct.  Obtaining job, education, financing, professional licensure, loans, etc., is extremely difficult after a securities fraud conviction, so it’s imperative to aggressively fight the charges. Contact a knowledgeable California defense lawyer from The Kavinoky Law Firm today for a free consultation