Hartford Insider Trading Lawyer

Experienced Defense For Insider Trading Charges in Connecticut

In the ever-evolving world of finance and investments, insider trading remains a constant concern for both individuals and corporations. It's crucial to understand the implications of these charges, especially when defending your rights and reputation. At Carlson & Dumeer, LLC, we are committed to delivering you with skilled legal counsel and representation in matters related to insider trading.

Call Carlson & Dumeer, LLC today at (877) 795-5594 or contact us online to schedule a consultation with our insider trading attorney in Hartford.

What is Insider Trading?

Insider trading involves buying or selling a security in breach of a fiduciary duty or other relationship of confidence and trust while possessing material, nonpublic information about the security. This practice is illegal, as it unfairly exploits confidential information, ultimately undermining the integrity of financial markets.

Insider trading can occur in various forms:

• Classic Insider Trading: This involves insiders, such as company executives or employees, trading based on nonpublic information about their company's stock.
• Tipper-Tippee Insider Trading: A tipper who possesses inside information shares it with a tippee, who then trades on the information. Both the tipper and the tippee may be held liable.
• Misappropriation Insider Trading: Individuals can be charged with insider trading if they misappropriate confidential information for personal gain, even if they aren't directly associated with the company.

What are the Penalties for Insider Trading in Connecticut?

Insider trading charges in Connecticut can have severe consequences, including substantial fines, imprisonment, and damage to your personal and professional reputation. It's essential to understand the potential penalties you may face:

• Civil Penalties: Individuals who engage in insider trading may be subject to civil penalties, including fines of up to three times the profit gained or loss avoided through illegal trading.
• Criminal Penalties: Insider trading can lead to criminal charges, including imprisonment for up to 20 years. Convictions may result in fines, asset forfeitures, and a lifetime ban from trading in securities.
• SEC Enforcement: The U.S. Securities and Exchange Commission (SEC) may also pursue enforcement actions against individuals or entities involved in insider trading. This can result in injunctions, civil penalties, and disgorgement of ill-gotten gains.
• Reputation Damage: Beyond legal penalties, being charged with insider trading can severely damage your reputation, making it challenging to secure future employment or investment opportunities.
• Collateral Consequences: Convictions can lead to additional consequences, such as professional license suspension or revocation, making it difficult to continue practicing in your chosen field.