Texas Securities Fraud Defense Lawyer

Our Lawyers Defend Investment Advisers, Corporate Insiders, and Other Targets in Federal Securities Fraud Matters

Oberheiden PC is a federal defense law firm that represents clients in high-stakes federal securities fraud cases. We handle matters under Texas law as well. We represent securities industry professionals, brokerage and investment advisory firms, and corporate clients in all matters involving alleged violations of the United States’ securities laws and regulations.

Attorney John W. Sellers
Securities Fraud and
SEC Defense Team Lead
Former DOJ Trial Attorney

Contact John

Whether you are facing a securities fraud investigation or you are facing securities fraud charges filed in state or federal court, you need experienced legal representation. These are high-stakes matters that can pose substantial risks for corporations, firms, and individuals.

At Oberheiden PC, we defend clients facing all types of securities fraud allegations in all types of circumstances. From defending investment advisers accused of unauthorized trading to defending corporate clients accused of executing unregistered securities sales, our practice spans all aspects of enforcement within the US securities markets. If you need an experienced securities fraud lawyer who can work quickly to help you avoid unnecessary consequences, we encourage you to contact us promptly to learn more about what we can do to help.

Matters We Handle

Within our federal securities fraud defense practice, we represent clients facing scrutiny under all federal laws and regulations enforced by the US Securities and Exchange Commission (SEC) and US Department of Justice (DOJ). Representative examples of matters we handle include:

US Securities and Exchange Commission (SEC) Investigations

We regularly represent clients that are facing scrutiny from the SEC. The SEC conducts investigations targeting all market participants for all types of statutory and regulatory violations. Our firm is available to defend:

Advisory firms and brokerage firms facing scrutiny for all types of compliance issues, from failing to supervise individual investment advisers and broker-dealers to making investments that exceed their disclosed risk tolerance.

Investment advisers and broker-dealers under investigation for unauthorized trading and excessive trading in client accounts, misappropriation of client funds, fiduciary duty breaches, and providing investment services without being properly registered.

Corporations and other securities issuers under investigation for accounting fraud, making material misrepresentations to individual and institutional investors, and conducting unregistered securities offerings.

Corporate insiders accused of self-dealing, making trades based on material non-public information, executing Ponzi schemes, participating in fraudulent schemes to sell stock in violation of federal law, and providing false information to federal authorities.

The SEC is among the most active law enforcement agencies in the federal government. In addition to conducting investigations on its own initiative, it also routinely works with whistleblowers who come forward with information about fraudulent securities practices. Under the SEC’s whistleblower program, whistleblowers have a significant financial incentive to come forward, as they can receive up to 30% of any administrative penalties or civil penalties recovered.

US Department of Justice (DOJ) Investigations

The DOJ also conducts securities fraud investigations—both alone and in conjunction with the SEC. The Criminal Division’s Fraud Section and Securities, Market, and Private Fraud Unit (SMP Unit) conduct investigations targeting criminal violations of federal securities laws such as the Securities Exchange Act and Sarbanes-Oxley Act, as well as general criminal laws that apply in these cases.

With a team that includes former senior DOJ prosecutors, we are well-versed in the DOJ’s investigative procedures, as well as its approach to civil enforcement actions and criminal prosecutions. From Fort Worth to San Antonio, we handle DOJ securities fraud investigations statewide, and we are available to provide representation on an emergency basis when necessary.

Civil and Administrative Proceedings

We represent individuals, firms, and corporate clients in civil and administrative proceedings involving the SEC and DOJ. This ranges from helping firms and securities issuers respond to cease-and-desist orders to defending against allegations of civil fraud that carry tens or hundreds of millions of dollars in potential liability exposure.

Many civil and administrative proceedings involve efforts to secure restitution for investors who have lost money due to fraud. However, on top of restitution liability, targeted entities and individuals can also face substantial monetary penalties. As a result, while settling will be a viable and prudent option in some cases, targeted entities and individuals may also need to be prepared to defend themselves in federal securities litigation.

Criminal Proceedings

We provide representation for federal criminal proceedings as well. Facing criminal charges arising out of a federal securities fraud investigation poses substantial risks. Federal prosecutors can pursue a wide range of charges against individuals, firms, and corporate defendants in these cases—all of which carry the potential for substantial fines and prison time. Some examples of potential charges include:

Attempt and Conspiracy

The DOJ can pursue attempt and conspiracy charges in a wide range of circumstances. Prosecutors use these charges to target corporate insiders, advisors, accountants, promoters, and other parties accused of perpetrating (or attempting to perpetrate) fraud schemes that pose financial risks for investors.

Corporate Accounting Fraud

Allegations of corporate accounting fraud can also lead to criminal prosecution in some cases. If prosecutors allege that securities issuers or corporate insiders knowingly or willfully certified false, misleading, or otherwise noncompliant financial statements or other financial disclosures, they can potentially face fines of up to $1 million or $5 million and up to 10 or 20 years of imprisonment.

Insider Trading

Insider trading also carries criminal penalties in cases involving knowing and willful violations of federal law. Corporate insiders accused of using their access to material non-public information to take advantage of anticipated swings in the market can also face multi-million-dollar fines and years or decades of federal imprisonment.

Investment Fraud

While investment advisers and brokers accused of failing to exercise reasonable care generally won’t be at risk of facing criminal prosecution, accusations of intentionally defrauding investors can lead to federal criminal charges. In these cases, federal prosecutors can pursue various charges under various statutes, and the risks involved will depend on the specific allegations included in a defendant’s grand jury indictment.

Market Manipulation

The DOJ aggressively pursues criminal charges against corporate insiders, investment brokers, high-net-worth investors, and other individuals accused of manipulating the US securities markets. This includes executing pump-and-dump schemes, Ponzi schemes (where earlier investors are paid with new investors’ funds), and other schemes focused on generating artificially inflated or otherwise fraudulent returns.

Money Laundering and Other Federal Crimes

Along with pursuing charges for securities-specific offenses, the DOJ will often pursue charges for other federal crimes in these cases as well. Additional charges for money laundering, tax evasion, wire fraud, and other federal white-collar offenses can substantially increase the risks involved in facing prosecution in federal district court.

In some cases, the SEC and DOJ will pursue parallel proceedings involving civil and criminal enforcement, and this can complicate targets’ defense strategies. While challenging the prosecution’s evidence in a criminal case often involves questioning witness reliability and raising questions about the DOJ’s ability to prove willfulness or intent, willfulness and intent are not required to establish civil liability in most cases.

Securities Arbitration (FINRA Arbitration)

Our attorneys are also available to defend brokers, advisors, and firms in securities arbitration in Texas. This includes arbitration before the Financial Industry Regulatory Authority (FINRA). We handle matters involving all types of investment fraud allegations—from ignoring clients’ investment objectives and making unsuitable investment recommendations to making unauthorized trades on a client’s behalf in order to generate commissions.

In securities arbitration, investors can pursue claims under federal securities laws and regulations as well as FINRA rules. As a result, these cases can be complex, and executing an effective defense strategy requires a clear and comprehensive understanding of both: (i) all pertinent risks, and (ii) all viable defenses.

Clients We Represent

Our Texas securities fraud defense lawyers represent all types of targeted entities and individuals in the matters discussed above. Our clients include:

Financial Professionals

We represent investment advisers, broker-dealers, and other financial professionals in all administrative, civil, and criminal securities fraud enforcement matters. We provide representation for FINRA arbitration and private securities litigation as well.

Advisory and Brokerage Firms

We also represent advisory and brokerage firms of all sizes. If your firm is under investigation or facing exposure to administrative, civil, or criminal penalties, our securities fraud attorneys can intervene immediately, and we can work to steer the government’s case toward a favorable resolution.

Corporate Insiders

We represent corporate insiders accused of insider trading, accounting fraud, and other federal securities law violations. Along with corporate executives and employees, the federal definition of “insiders” includes advisors, family members, and other individuals with whom corporate insiders have professional and personal relationships.

Corporate Entities

We have substantial experience representing corporate entities in Texas in federal securities fraud matters. Once you engage our firm to represent your company, our defense attorneys will analyze your company’s financial records and other potential evidence to assess your company’s risk exposure. Then, we will build and execute a comprehensive defense strategy focused on the circumstances at hand.

Other Targets of SEC and DOJ Investigations

From government officials to individuals accused of perpetrating pump-and-dump schemes, we represent a wide range of other clients as well. Regardless of your specific circumstances, if you are facing scrutiny from the SEC or DOJ, we have relevant experience—and we can use our experience to help protect you by all means available.

Why to Choose Oberheiden PC for Federal Securities Fraud Defense in Texas

In all cases, facing allegations of securities fraud is a high-risk matter. Administrative, civil, and criminal penalties can all be substantial, and the SEC and DOJ aggressively pursue enforcement when they believe enforcement is warranted.

As a result, when you are facing securities-related scrutiny from the SEC or DOJ, your choice of legal representation matters.

At Oberheiden PC, we rely on extensive relevant experience to defend clients in these cases. We have a proven record of success, and we rely on the insights gained from our experience to provide strategic defense representation in complex and high-stakes securities fraud cases. Our firm offers:

Comprehensive, Strategic, and Custom-Tailored Defense – We will work quickly to counter the SEC’s or DOJ’s allegations, dispute the reliability and sufficiency of their evidence, and target a resolution that avoids formal administrative, civil, or criminal enforcement action.

Evaluation of All Viable Defense Strategies – From reliance on legal opinions and documented compliance to challenging the federal government’s evidence of intent to defraud (in criminal cases), we will evaluate all viable defense strategies in light of the circumstances at hand.

Defense Focused on Efficient and Confidential Resolution – While we defend our clients in securities litigation and criminal proceedings when necessary, we focus on securing efficient and confidential resolutions whenever possible.

Future-Focused Advice and Representation – Along with addressing our clients’ immediate concerns, we also focus on protecting our clients’ interests going forward. This includes effectively managing securities compliance and maintaining a positive relationship with the SEC.

If you would like more information about our team, our results, or any other aspect of our practice, we invite you to get in touch. A senior securities fraud lawyer at our firm will be more than happy to answer all of your questions and provide the insights you need to make informed decisions about your next steps.

FAQs: Defending Against Securities Fraud Allegations in Texas

What do I need to do if my company or firm is facing a securities fraud investigation in Texas?

If your company or firm is facing a securities fraud investigation in Texas, a critical first step is to preserve all relevant (or potentially relevant) documents and communications. Failure to implement an effective “legal hold” during a securities fraud investigation can not only raise red flags, but it can also lead to additional allegations of noncompliance.

Implementing an effective legal hold is a multi-step process. Targeted entities must ensure that they address all potential sources of documentation loss, including automated cloud storage cleanup and deletion from personal devices. As a result, engaging experienced legal counsel is critical. Once you engage Oberheiden PC to handle your company’s or firm’s investigation, a securities fraud lawyer at our firm will assist with implementing a legal hold immediately.

Is breach of fiduciary duty a federal offense?

Breach of fiduciary duty is a civil matter in most cases. However, if allegations of breaching a fiduciary duty to investors are accompanied by allegations of intent to defraud, then facing federal criminal charges could become a very real concern. If you have been accused of breaching your fiduciary duty to investors, a securities fraud lawyer at our firm can assess your risk and defend you by all means available.

What are the penalties for corporate securities fraud?

The penalties for corporate securities fraud depend on the nature of the allegations involved. Broadly, potential penalties in these cases fall into three categories:

Administrative Penalties – Loss or denial of registration or a bar from issuing securities.
Civil Penalties – Monetary fines (which are often calculated on a per-violation basis).
Criminal Penalties – Monetary fines for corporate entities, and fines and prison time for corporate insiders.

In corporate securities fraud cases, it is not unusual for companies to face seven, eight, and even nine-figure liability exposure. As a result, companies targeted in corporate securities fraud investigations need to prioritize their defense, and engaging experienced securities fraud defense counsel is the first step in the process.

What are the penalties for insider trading?

Under the Securities Exchange Act and SEC Rule 10b-5, insider trading allegations carry the potential for multi-million-dollar fines and 20 years of federal prison time. Facing allegations of insider trading is an extremely serious matter, and targeted insiders should engage experienced defense counsel immediately.

Do you also represent clients facing scrutiny under the Texas Securities Act?

Yes, along with representing clients in federal securities fraud cases, we also represent clients in cases involving the Texas State Securities Board (TSSB) and other state securities regulators. TSSB investigations can be triggered by investor complaints or market surveillance, and they can pose substantial risks. Along with monetary penalties, these include registration suspension or revocation. TSSB investigations can also lead to criminal prosecution in some cases. Securities fraud is typically prosecuted as a third-degree felony in Texas, and convictions can result in up to a $10,000 fine and 2 to 10 years in state prison.

The Texas Securities Act (TSA) regulates securities offerings and sales in the state, and the severity of the risks involved in facing securities fraud charges under the TSA increases with the amount of money involved. If you are facing (or your company or firm is facing) scrutiny under the Texas Securities Act, our legal team can work quickly to build and execute a strategic defense.

Schedule a Free Consultation with a Senior Securities Fraud Attorney at Oberheiden PC

Oberheiden PC is a Texas securities fraud defense law firm that represents individual and corporate clients statewide. To speak with one of our senior attorneys in confidence, contact us today. Call 888-680-1745 or contact us online to schedule a free and confidential consultation as soon as possible.

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