A former Florida day trader pleaded guilty on Dec. 11 to one count of conspiracy to commit securities fraud and one count of securities fraud after admitting to playing a role in a ring to steal confidential details from investment banks. According to authorities, the stolen confidential information was used for the purpose of helping clients make trades.
Authorities said that the 56-year-old man and several conspirators used the confidential information to short-sell the securities on a minimum of 13 companies from June 2010 and July 2013. As part of the scheme, the convicted man and other conspirators posed as portfolio managers who were looking to buy securities from the investment bankers. The accused reportedly agreed not to disclose the confidential information to others or make the trades before the upcoming offerings were made public. The former day trader admitted that he made more than $760,000 in these trades.
The convicted man is scheduled to be sentenced for the crimes on April 12. He faces a maximum of 20 years in jail on the securities fraud charge and a maximum of five years in jail the conspiracy charge. Furthermore, the potential fines are $5 million for the securities fraud charge and $250,000 on the conspiracy charge.
Those who are accused of being involved in federal white collar crimes, such as securities fraud, could be at risk for being sentenced to years in jail and responsible for paying major fines. A criminal defense attorney may walk an accused person through the legal process so he or she knows what to expect. The attorney may also investigate the methods the authorities used to gather the evidence.