Insider trading is a white-collar crime rigorously prosecuted by prosecutors and federal agencies, resulting in harsh punishments such as lengthy jail sentences, hefty fines, and prohibitions on holding positions with fiduciary duties.
Insider trading was once allowed, but substantial changes in the 1930s resulted in illegality. Insider trading occurs nowadays when individuals use non-public information to conduct stock trades, whether buying or selling stocks based on secret knowledge.
Insider trading is defined as when a person has a fiduciary duty to a firm, individual, or entity. Notably, profit isn't required to be charged with insider trading; even selling stock to avoid losses based on privileged information is deemed insider trading. Because of the intricacy and seriousness of insider trading allegations, it is critical to get legal guidance from an experienced criminal defense attorney who specializes in white-collar crimes.
An experienced insider trading defense attorney can manage the complexities of the case, preserve the defendant's rights, question the evidence, and attempt to reduce or achieve a favorable resolution. With such severe repercussions at play, it is critical to have competent legal counsel to construct a credible defense against insider trading claims.
Source: Overview of Insider Trading
