You can lose everything you have, your business, freedom and future with a single fraud charge. Under 18 U.S.C. § 1348, federal prosecutors can go after anyone suspected of engaging in schemes to defraud investors. This can happen when someone lies to investors, uses unfair trading tactics or manipulates the stock or commodities market.
Federal agencies like the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) or the Department of Justice (DOJ) also investigate these cases.
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What does the government have to prove?
A simple accusation is not enough. To convict someone, prosecutors must prove that the accused:
- Knowingly took part in a plan to trick investors or get their money through lies or false promises.
- Meant to deceive others about a stock, investment or commodity.
- Used phones, email or other electronic communication to make it happen.
The accused does not even have to make profit. Intent and misleading conduct are enough for federal authorities to pursue charges.
Common examples of alleged schemes
Federal investigators in New York often target cases where someone lies about investments or company performance. This can include insider trading, manipulating stock prices or running unregistered investment programs. Some companies also face charges for using clients’ money for business activities the clients never approved.
New York City heavily regulates the financial sector, so accused individuals or businesses can expect aggressive and complex investigations.
What are the potential penalties and consequences?
Convictions under 18 U.S.C. § 1348 can result in up to 25 years in federal prison, substantial fines and forfeiture of assets. But it does not stop there. If convicted, these individuals may also face civil enforcement actions and license suspension or revocation.
How do you build a strong defense?
You should speak with an attorney who has a deep understanding of federal law and financial regulations. They can then challenge how the government defines intent to defraud and question whether deceptive acts or normal market forces caused the losses. You have the right to protect yourself from these accusations. So do not hesitate to hire a skilled federal defense lawyer as soon as you can.
