Omissions and Misrepresentations Defense - Federal Lawyer
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Omissions and Misrepresentations Defense

Defense for Omissions and Misrepresentations

  • The defense attorneys at Oberheiden, P.C. regularly advise clients against accusations of omissions and misrepresentations throughout all stages of the investigation and litigation process.
  • We represent small and large corporations and pride ourselves in preparing successful defense strategies that give our clients the best chance of success.
  • Call Oberheiden, P.C. to get an experienced defense attorney on your side to protect your work, liberty, and reputation.

Put our highly experienced team on your side

Dr. Nick Oberheiden
Dr. Nick Oberheiden



John W. Sellers
John W. Sellers

Former Senior Trial Attorney
U.S. Department of Justice

Local Counsel

Joanne Fine DeLena
Joanne Fine DeLena

Former Assistant U.S. Attorney

Local Counsel

Joe Brown
Joe Brown

Former U.S. Attorney & Former District Attorney

Local Trial & Defense Counsel

Amanda Marshall
Amanda Marshall

Former U.S. Attorney

Local Counsel

Aaron L. Wiley
Aaron L. Wiley

Former Federal Prosecutor

Local Counsel

Roger Bach
Roger Bach

Former Special Agent (OIG)

Michael Koslow
Michael Koslow

Former Supervisory Special Agent (FBI)

Chris Quick
Chris Quick

Former Special Agent (FBI & IRS-CI)

Kevin M. Sheridan
Kevin M. Sheridan

Former Special Agent (FBI)

Ray Yuen
Ray Yuen

Former Supervisory Special Agent (FBI)

Dennis A. Wichern
Dennis A. Wichern

Former Special Agent-in-Charge (DEA)

Experienced Defense Team

If you have been charged or are being investigated in connection with an omission or misrepresentation, now is the time to take prompt action in your defense.

The SEC has ramped up efforts to seek out individuals and companies suspected of engaging in omissions and misrepresentations. It often coordinates these efforts with other regulatory agencies such as the DOJ. This can result in substantial jail time and criminal penalties.

If you think you need assistance in preparing a defense based on a charge or investigation of misrepresentation and/or omission, we are here to help.

At Oberheiden, P.C., we pride ourselves in superior quality, excellence, and proven results. Our track record is incomparable. We can defend you against charges of misrepresentation or omission. Our attorneys include a blend of former FBI agents, former U.S. attorneys, and former prosecutors to give you the best chance of success.

We will develop an individualized defense strategy for you to give you the best chance of success at every stage of the investigation or litigation process. Do not wait to get in touch with an experienced defense attorney today.

A charge against you has the power to shut down your life’s hard work and your company itself. Do everything possible to defend your rights and career. We are here to help.

The stakes are high. Put Oberheiden, P.C. on your side today to protect your liberty and reputation.

What are Omissions?

An omission is a failure to disclose a material fact necessary in order to make the statement not misleading to the investor. An omission can result in substantial losses to an investor that relies on a statement without having received the full range of facts about the particular transaction.

The omission must be related to a material fact. An action for an omission cannot be based on an immaterial fact or an opinion. While the definition of materiality can differ, a fact in a statement, report, or other item is generally “material” if a reasonable person would attach importance to it for the purpose of making his or her decision or determining his or her next course of action.

In the context of securities laws, an omission can occur when an individual fails to provide important information to an investor. This information is needed in order for the investor to make an informed decision about the particular stock or security transaction.

What are Misrepresentations?

A misrepresentation is a false statement of material fact made by one party to another party. A misrepresentation affects the decision-making of the innocent party, usually to their detriment, and can result in substantial loss.

A misrepresentation applies only to statements of fact, not to opinions, puffery, or predictions.

There are several categories of misrepresentations:

  • Innocent Misrepresentation: A false statement of material fact made by defendant who was unaware of its falsity at the time of making the statement.
  • Negligent Misrepresentation: A statement made by defendant, which defendant did not properly verify whether it was true before making it.
  • Fraudulent Misrepresentation: This is the most severe form of misrepresentation. Fraudulent misrepresentation is a statement made by defendant knowing that it was false, or a statement made by defendant with the reckless disregard of its veracity.

In the context of securities laws, a misrepresentation usually occurs when a broker sells an investor a stock or other security by making a false statement of material fact regarding some aspect of the stock/security transaction.

In the following sections, we will briefly explain some common examples of omissions and misrepresentations, warnings signs of omissions and misrepresentations, and what you can do to protect yourself.

Examples of Omissions and Misrepresentations

The examples of an omissions and/or misrepresentation are infinite. Several prominent examples are shown below:

  • misrepresenting the risks of an investment
  • failing to inform your client of a risky investment
  • lying about the performance of an investment by changing investment results
  • hiding the performance of an investment

Warnings Signs of Possible Omissions and Misrepresentations

There are several red flags or warnings flags associated with making misrepresentations and/or omissions:

  • You thought your investment was safe and was told your investment was safe but instead suffered substantial losses.
  • You view your account statement and notice some unusual transactions that you do not recognize or remember.
  • Your broker or investment adviser disappears and cannot be contacted.
  • You learn of new risks – substantial risks – associated with your investment after it was consummated that you have never been told.
  • You did not receive any receipts, confirmations, or other paperwork about your investment.
  • If you received receipts or other confirmations, it does not match what your broker or investment adviser had told you.
  • You read about or hear from a third party or media sources that there is an unravelling fraud associated with your investment or broker/investment adviser.

How Omissions and Misrepresentations Investigations Work

The SEC is charged with the enforcement and compliance of the federal securities regulations. The SEC can bring a charge against individuals or companies that are suspected of engaging in misrepresentations or omissions.

An investigation into an individual or company for possible misrepresentations or omissions is not hard to do. In fact, the SEC regularly investigates companies for these violations, which are often based on weak or circumstantial evidence provided by the supposedly harmed investors.

The federal securities law that addresses misrepresentations and omissions is Section 10(b) and Rule 10b-5. Rule 10b-5 prohibits fraudulent practices such the making of untrue statements of material fact in connection with the purchase or sale of a security. It also prohibits the omission of a material fact.

Which facts are material could depend on the facts or circumstances of the transaction but often include the risk of the investment; the costs involved in purchasing the security; or any other specific information relating to the particular security.

In addition to violations of federal laws, the company or individual may be charged under state security laws.

If you think you are being investigated or may be investigated for misrepresentation or omissions, call an experienced attorney today for a free consultation.

How to Respond If You’ve Been Charged/Arrested in connection with Omissions and Misrepresentations

A charge of misrepresentation and/or omission can be damaging to the trust of your company. It can harm shareholder value and irreparably injure your reputation and relationship with business partners.

Do not divulge any information to a federal agent without first discussing with your attorney.

If you believe someone suspects or is investigating you for making a misrepresentation or accusing you of omitting material facts, get in touch with an experienced defense attorney today.

At Oberheiden, P.C., our defense attorneys are highly specialized in the preparation of meticulous defense work regarding allegations of misrepresentation or omission. Our success rate and track record make us one of the leading defense law firms in the nation. We assure you that no firm will harder than Oberheiden, P.C. to give the best defense to you and your company.

Call us today or contact our office for a free consultation and protect your company.

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