David R. Chase, P.A.
Call Us Now: 800-760-0912
Call Us Now: 800-760-0912
The financial services sector, including investment banks, hedge funds, private equity firms, broker-dealers, and asset managers, is one of the primary targets of enforcement by the U.S. Securities and Exchange Commission (SEC). With direct access to confidential market-moving information, the potential to influence massive capital flows and the capability of manipulating asset prices, this industry operates under intense regulatory scrutiny.
When the SEC launches an investigation into potential insider trading or securities fraud within the financial services space, the consequences can be severe, including civil penalties, possible referrals to the criminal authorities for prosecution, professional reputational harm and limits on trading activities. If you or your firm is under investigation, hiring an experienced and aggressive SEC defense attorney is your first, most critical next step.
David R. Chase, Esq., a former SEC prosecutor, has built a national practice focused on defending individuals and entities under investigation. With deep experience in, and knowledge of, insider trading cases and financial industry regulation, David R. Chase, P.A. is ready to protect your interests, and defend your legal rights, reputation, and securities career.
The SEC views financial professionals as gatekeepers of sensitive and potentially material, nonpublic information (MNPI). Because this sector plays a central role in capital markets, it is a frequent source, and often a conduit, for insider trading and other securities fraud violations.
Some of the SEC’s most high-profile insider trading enforcement actions have arisen from the financial sector. These cases illustrate how insider trading charges can destroy careers and firms, and how the SEC seeks to make public examples of those involved.
Perhaps the most well-known insider trading case in the financial services industry, the Galleon Group investigation involved billionaire hedge fund manager Raj Rajaratnam, who was convicted in 2011 of using a vast network of insiders at tech firms, investment banks, and consulting companies to trade ahead of earnings announcements and M&A activity. Dozens of individuals were charged, including traders, executives, and consultants. This case marked a turning point in the SEC and DOJ’s use of wiretaps in white-collar investigations.
Goldman Sachs has been at the center of several insider trading investigations, including the 2010 case involving board member Rajat Gupta, who was accused of tipping Rajaratnam with inside information about Berkshire Hathaway’s investment in Goldman Sachs during the financial crisis. Gupta was convicted of conspiracy and securities fraud. The case underscored how even senior executives and board members at the highest levels are not immune from scrutiny.
These cases demonstrate the SEC’s focus on financial institutions and their employees, and how tipper-tippee relationships, even without direct trading by an individual, can expose professionals to significant civil and criminal liability.
Insider trading is defined as trading securities while in possession of material, nonpublic information (MNPI) in breach of a fiduciary duty of trust or confidence. This includes:
Defending against SEC insider trading charges requires a strategic and nuanced understanding of the federal securities law, SEC investigative tactics and the financial industry’s operations.
If you are being investigated by the SEC and have received either a subpoena, a Wells Notice, or informal inquiry — you need experienced legal counsel immediately. These investigations can escalate quickly, and your response at the early stages may significantly affect the outcome.
David R. Chase, Esq. is a highly skilled SEC defense attorney who has successfully represented clients from across the financial services industry nationwide, including:
As a former SEC enforcement attorney, David knows exactly how the agency builds its cases. He leverages that insight to develop a tailored, effective defense strategy for each client, whether that means quietly resolving the matter without charges, negotiating a favorable settlement, or fighting the allegations in a litigated context.
SEC insider trading and fraud investigations in the financial sector can be career-ending if not handled timely and with skill and discretion.
Don’t go at it alone and wait until it’s too late. The earlier you involve an experienced attorney, the better your chances of potentially avoiding charges.
Contact David R. Chase, P.A. today at 800-760-0912 to schedule a confidential consultation. You can also visit www.securitiesfrauddefense.net to learn more about how we defend professionals in the financial services industry against SEC enforcement investigations.
Whether you’re an investment banker or hedge fund manager facing a SEC subpoena, David Chase is the trusted and experienced SEC defense lawyer you want on your side.
