Insider Trading Defense Lawyer in Brooklyn, New York

Insider trading cases work differently than most white-collar allegations because two separate agencies can come after you for the same conduct. The SEC can file a civil case, and federal prosecutors can bring criminal charges. Sometimes both happen at once. Facing that kind of dual exposure can feel overwhelming, especially when you're still trying to understand what you're even being accused of. 

Newman Litigation, based in Brooklyn, New York, represents individuals and businesses across New York dealing with exactly this kind of investigation. If the SEC or federal investigators have contacted you, call the firm today for a no-obligation consultation. 

Federal Law on Insider Trading

Insider trading is regulated at two levels. At the criminal level, it's illegal to trade a company's stock while you're sitting on material information the public doesn't have yet. This doesn't just apply to company insiders like officers and directors; it can also apply to someone who simply received a tip from a person connected to the company. 

The Securities and Exchange Commission adds a second, separate layer. It administers regulations that are separate from criminal statutes that give it the authority to investigate and pursue insider trading allegations on its own. 

Because these two systems operate independently, a single set of facts can lead to federal criminal charges and an SEC civil case. Insider trading cases also rarely stand alone. Schemes involving multiple people or coordinated communications can lead to related charges, such as conspiracy. 

Newman Litigation recommends reaching out to an experienced attorney as soon as a subpoena, letter, or investigator visit arrives, not after. Early contact gives a lawyer the chance to review what investigators are asking for before you respond, help you avoid statements or documents that could be used against you later, and start building your defense while the facts are still fresh. Waiting until charges are filed means losing that window because by then, the record you'll have to defend against is already set. 

The Firm Can Help You Respond If You're Contacted by Investigators

How you respond in the first few days of an insider trading inquiry can shape the rest of the case. A few things are especially important, such as: 

• Don't destroy or alter any documents, emails, texts, or trading records, even ones you think are unrelated. Doing so can lead to separate obstruction charges in addition to the underlying allegations. 

• Don't discuss the investigation with colleagues, friends, or anyone who might also be a witness or subject of the inquiry. 

• Don't agree to an interview with the SEC or federal investigators before speaking with a lawyer, even if you believe you did nothing wrong. 

• Do preserve everything related to the trades in question, including communications on personal devices and personal email accounts. 

Contacting an experienced New York government investigation and defense attorney before you respond to investigators, not after, gives you better chances to protect your rights from the outset. 

Why Clients Choose Newman Litigation for Insider Trading Defense

Insider trading defense means negotiating two fronts at once: the SEC's civil enforcement staff on one side and federal prosecutors building a criminal case on the other. Few firms are built to work both conversations well. The firm's principal insider trading attorney, Will Newman, has experience negotiating with government agents and attorneys while also researching, asserting, and arguing defenses in court. 

The firm's results reflect that approach. In the past, Will Newman has defended clients in federal courts in New York and Washington, D.C., persuaded a court to impose a sentence lighter than prosecutors recommended, and convinced the SEC to stand down from additional fines against a client already facing criminal prosecution. 

What that experience means for you: Newman Litigation understands both the SEC's playbook and federal prosecution strategies, and uses its experience to your advantage instead of treating each front in isolation. 

Frequently Asked Questions

What counts as material nonpublic information?  

Information is generally considered material if a reasonable investor would view it as significant to a decision to buy or sell a security, such as undisclosed earnings results, a pending merger, or a regulatory decision. Information is nonpublic if it has not yet been disclosed to the public through normal channels. 

What penalties can insider trading carry?  

Insider trading can lead to both criminal and civil consequences. Criminal convictions can carry substantial prison time and significant fines, while the SEC can separately pursue civil penalties of up to three times the profit gained or loss avoided, along with disgorgement of any illegal gains. 

How is insider trading typically discovered?  

Insider trading investigations often begin with automated surveillance of unusual trading patterns by stock exchanges or the SEC, tips from whistleblowers, or referrals from other investigations. A subpoena or request for documents is typically the first sign that an investigation is underway. 

Experienced Defense Against SEC and Federal Charges

If you are facing an insider trading investigation or prosecution, our team at Newman Litigation is committed to protecting your rights. We understand how disruptive and frightening this kind of scrutiny can be, especially when your career and reputation are on the line. 

Located in Brooklyn, New York, we represent clients in insider trading matters throughout New York and across the United States. Contact us today to schedule a consultation.