DOJ Securities Fraud Defense

When can an SEC investigation turn into a criminal investigation?

Not all SEC cases go criminal. That’s important to understand. However, some do.

There are a few factors the SEC will consider in determining whether a case may be referred to the criminal authorities, typically the Department of Justice.

The first is typically the nature and quality of the evidence. How compelling and convincing is that evidence? The criminal authorities have to prove their case beyond a reasonable doubt, which is a much higher standard than the SEC’s civil standard of proof, which is by a preponderance of the evidence—meaning more likely than not.

The quality of the evidence is a critical factor.

The second is how much money is involved. How large of a fraud, for example, is it? If it’s a few hundred thousand dollars versus a few hundred million dollars, that makes a difference. Obviously, the larger the potential losses, the more significant criminal interest is likely to exist.

Another key factor is the individual investors who have been harmed. Who are they? If they are elderly, retirees or particularly vulnerable victims, that is a critical factor that the SEC will take into account when determining whether to refer it criminally.

Finally, if the individual being investigated by the SEC has a prior history of securities violations—is a recidivist, as it is known—that dramatically increases the chances of a referral to the criminal authorities under the reasoning that if that individual did not get the message in the first case, perhaps they don’t take the SEC’s enforcement powers seriously enough and the matter should be referred for criminal prosecution.

David Chase represents individuals under investigation by the Department of Justice for securities fraud.  Cases include insider trading, crypto fraud, stock manipulations, including Spoofing, Ponzi Schemes and offering frauds.

While working at the SEC in its Enforcement Division, David was deputized as a Special Assistant United States Attorney in the Southern District of Florida’s Miami Office, Economic Crimes Division, where he investigated and criminally prosecuted stock frauds.  His experience as a criminal prosecutor provides David with a unique insight on how the Government pursues securities fraud cases thus enabling him to most effectively defend his clients.

For over the last twenty-five years as a criminal securities defense lawyer, David has worked with co-counsel to successfully defend those who are under DOJ investigation or who have already been indicted across the nation.  This team approach offers the client the benefit of two experienced and knowledgeable securities lawyers, as well as the resources to take on the vast Federal Government in what are once-in-a lifetime events with potential life-changing consequences, including the prospect of incarceration.

DOJ Securities Fraud Defense Lawyer

If you have just received a Grand Jury Subpoena or have been contacted by Federal Law Enforcement authorities, David Chase has the securities law knowledge, years in the trenches and seasoned judgment to strategically navigate you through the process with the goal of avoiding charges.

What happens when the SEC and DOJ investigate me at the same time?

When the SEC and DOJ are investigating the same case, the same facts and typically the same individuals at the same time, it gets very complex very fast.

It’s more important than ever to have experienced SEC counsel, as well as DOJ counsel, who understands the intricacies, complexities and increased dangers of that scenario.

What may be a questionable call as to whether a client testifies in SEC testimony becomes much more difficult when we know that there is a pending criminal investigation.

Thus, it’s critical that steps be taken to ensure that a client’s interests are protected given the threat of criminal prosecution.

In fact, in every SEC investigation, I always consider and take into account the potential for a referral to the Department of Justice.

The strategies that we use and employ take that into account, as they must, because criminal prosecution with the threat of incarceration has life-changing consequences beyond a standard SEC investigation, which in and of itself is serious.