Federal regulatory and law enforcement agencies have been redirecting and expanding their resources to investigate and combat frauds involving crypto and other digital platforms. The SEC recently requested $200M from Congress to hire additional 170 new employees, many to focus on crypto-related cases. These new hires will include lawyers in the Division of Enforcement’s [...]
A Federal Restitution Order Leads to Garnishment of the Defendant’s Bank, Retirement and Stock Accounts
Courts uphold federal government’s ability to seize a convicted defendant’s 401(k) accounts to satisfy an Order of Restitution after a conviction at trial or a guilty plea.
The U.S. Securities and Exchange Commission (SEC) operates from its headquarters in Washington, D.C. and has 11 regional offices. It’s Division of Enforcement investigates cases and recommends to the Commission cases to be brought against individuals and entities. Investigations can begin through whistleblowers, news articles, referrals from other agencies, complaints from the public or data derived from market surveillance.
A form of white collar crime that most New Jersey residents have heard about and some have unfortunately become first-hand familiar with is the fraudulent investment scheme. This trap usually comes in the form of a purported investment opportunity that promises a return on investment that is the epitome of the saying, "Too good to be true." There are many types of fraudulent investment schemes, from supposed foreign royalty looking for someone to help them to deposit large sums of money to insider trading on the stock market.
Everyone who trades stocks ordinarily does so based on a combination of luck, speculation, and knowledge about a company. To keep the playing field level, the government is increasingly regulating what is known as "insider trading."
With the economic recession that began in 2008 came an attitude in New Jersey and throughout the country that was very hostile towards executives in large companies and people working within the financial industry. They were seen as reckless gamblers or greedy thieves that blatantly stole money from ordinary, honest people. The prevailing mood was that these financiers should be prosecuted and punished.
Violations of any number of federal statutes have the potential to jeopardize a business and can, in many cases, result in individuals going to prison. In addition, restitution and forfeiture may be applicable. Below, we delve into some of the most commonly encountered federal business fraud statutes.