Milnor Law PLLC

Practice · 09 / 10

Securities Fraud Defense

Defense of insider trading, market manipulation, and accounting fraud matters, including those that proceed on parallel tracks before the SEC, CFTC, DOJ, and the SROs.

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Why this matters

Advising clients on securities fraud, wire fraud, and money-laundering exposure.

Allegations of insider trading, market manipulation, or accounting fraud can draw parallel scrutiny from the SEC, the CFTC, the SROs, and, on the criminal side, the DOJ. When more than one regulator is involved, decisions in one proceeding can affect outcomes in the parallel proceedings. Coordination is central to the defense.

01Securities Fraud Defense

The parallel posture

Securities fraud matters frequently arrive with more than one regulator involved. SEC enforcement may be running alongside a DOJ criminal investigation, an SRO disciplinary proceeding, civil class actions, and shareholder derivative suits, each with its own document and testimony obligations, its own settlement vocabulary, and its own pressure on the schedule.

Document productions, testimony, and cooperation discussions in one proceeding can affect the others. A Fifth Amendment invocation in the SEC matter has consequences in the parallel DOJ case. A Wells submission written for the Commission becomes a roadmap for plaintiffs' counsel if it later surfaces in discovery.

02Securities Fraud Defense

Who the firm represents

The firm represents executives, traders, registered representatives, board members, control persons, and the companies that employ them. The work involves coordinating responses across regulators, preserving Fifth Amendment positions where appropriate, scoping cooperation discussions before they begin, and managing the public-record consequences of charging decisions.

Engagement scope is set explicitly to handle joint defense agreements, common-interest privilege questions, and the conflict analysis that necessarily accompanies multi-party representations.

03Securities Fraud Defense

Substantive areas

Rule 10b-5 insider trading and tipping liability; market manipulation under Sections 9 and 10(b); accounting fraud and improper revenue recognition; Section 17(a) antifraud violations; disclosure violations including Sections 13(a) and 14(a); short-swing profits under Section 16; and the public-company reporting and certification matters under Sarbanes-Oxley Sections 302 and 906 that intersect with all of the above.

Statute of limitations issues, particularly under Section 2462 and the Supreme Court's decisions in Kokesh, Lucia, and Liu, are part of the framing on every matter where the conduct at issue is more than three years old.

Working with the firm on this matter

  1. 01

    Map

    Identify all venues (SEC, DOJ, SROs, civil) and their interactions.

  2. 02

    Coordinate

    Single strategy across venues; joint defense agreements where appropriate.

  3. 03

    Negotiate

    Settlement framework written down before any offer arrives.

  4. 04

    Resolve

    Settlement, contested proceedings, or trial with collateral consequences in view.

04Securities Fraud Defense

Settlement and trial

Most securities fraud matters settle. The questions are when, at what venue, on what terms, and with what collateral consequences. The firm builds the settlement framework early, including the position on bars, suspensions, undertakings, and admissions, so that when an offer arrives, it can be evaluated against a written posture rather than improvised.

Where settlement is not the right outcome, the firm tries the matter, in SEC administrative proceedings, before federal district court, or in SRO hearing panels. The trial preparation begins long before the formal complaint.

Adjacent

Related practice areas

  • SEC Enforcement Defense

    Subpoena response, Wells notices, on-the-record interviews, settlement negotiation, and defense for individuals and entities under SEC or CFTC (Commodities Futures Trading Commission) investigation.

    Read more →SEC Enforcement Defense
  • Internal Investigations

    Independent counsel to boards and audit committees on whistleblower reports, accounting irregularities, and potential FCPA exposure, including scoping, witness interviews, factual findings, and advice on remediation and self-reporting, informed by the regulator-side perspective these reviews require.

    Read more →Internal Investigations
  • Broker-Dealer & Investment Adviser

    FINRA, NYSE, and NASDAQ enforcement defense and disciplinary proceedings. Compliance counseling (including creating and improving policies) for RIAs, broker-dealers, and fund complexes.

    Read more →Broker-Dealer & Investment Adviser