Raleigh Insider Trading Lawyer

Insider Trading Attorney In Raleigh

Facing insider trading charges may not seem like a big deal, especially because it is considered a non-violent crime. However, this charge still comes with serious penalties. Navigating insider trading laws, especially in a high-stakes jurisdiction like Raleigh’s financial and corporate sectors, demands legal advocacy from a skilled Raleigh insider trading lawyer who understands both federal statutes and local enforcement trends.

With aggressive prosecutors and steep insider trading penalties at play, having a skilled attorney can make all the difference when you decide to hire an insider trading lawyer.

What Is Insider Trading?

Insider trading refers to the buying or selling of a publicly traded company’s stock or other securities based on material, nonpublic information about the company. It becomes illegal when someone uses confidential information, usually acquired through a position of trust or access, to gain an unfair advantage in the market. Insider trading typically comes in two forms:

• Classical insider trading. This happens when corporate insiders trade secrets about their own business. This can be executives, directors, or employees. This becomes illegal when they release this information, and it is not available to the public, so traders have an advantage.
• Misappropriation theory. This involves someone outside the company who gains confidential information and uses it for personal gain, such as a lawyer, accountant, or even a family member or friend of an insider who receives a tip.

In order to be legally considered insider trading, there must be three things present. This includes:

• Materiality. The information must be significant enough to influence an investor’s decision.
• Nonpublic status. The information isn’t available to the general investing public.
• Breach of duty. The person trading had a duty to keep the information confidential and used it in violation of that duty.

Insider Trading Laws and Penalties

About 50 insider trader cases are processed every year by the U.S. Securities and Exchange Commission (SEC). Additionally, during one recent year, the SEC employed 1,300 staff members and designated $550 million towards tackling insider trading.

Insider trading laws in the United States are primarily enforced under the Securities Exchange Act of 1934, which prohibits fraudulent activities related to securities trading. The SEC is the main enforcement agency, while the Department of Justice (DOJ) handles criminal prosecution related to insider trading. Violating these laws, either intentionally or even negligently, can lead to serious consequences.

Penalties for insider trading can be both civil and criminal. This can include:

• Prison time
• Fines in the millions of dollars
• Paying back any financial profits made from the insider training
• Banning them from their service position
• Revocation of professional licenses

What To Do If You’re Charged With Insider Trading

If you’re facing insider trading charges or even think you might be under investigation, the most important thing you can do is stay calm and contact a lawyer right away. Do not talk to investigators, your employer, or anyone else about the situation until you have legal representation. Even casual conversations can come back to hurt you later.

In Raleigh, these cases are usually handled in federal court, specifically at the U.S. District Court for the Eastern District of North Carolina on New Bern Avenue. In some cases, local matters may also involve the Wake County Justice Center. A skilled Raleigh insider trading attorney will know how to navigate both systems and protect your rights from day one.

Early legal help can make a huge difference. We can handle communications with the SEC or DOJ, help you respond to subpoenas, and may even be able to resolve things quietly before charges become public. The sooner you act, the more options you’ll have. Waiting too long can limit your ability to negotiate or build a strong defense.

About W. James Payne Law Firm

W James Payne is a seasoned criminal defense attorney and retired U.S. Marine Corps Colonel with over 40 years of legal experience. A native of North Carolina and a proud alumnus of Campbell University and Campbell Law, Mr. Payne has dedicated his entire career to defending clients in complex criminal and military justice cases.

His five years as a military Judge and three decades of service in the Marine Corps shaped his unwavering sense of duty, precision, and integrity from white-collar investigations to capital defense. Practicing across federal and state courts, including the U.S. Court of Appeals for the Fourth Circuit, Mr. Payne has earned a reputation as a fierce advocate known for his sharp legal instincts and tireless approach.

FAQs

Can You File a Claim Against Someone for Insider Trading?

Yes, you can file a claim against someone for insider trading, but typically, insider trading is handled by federal agencies like the SEC or the DOJ. However, if you suffered financial losses because of someone else’s illegal trading activity, you may be able to pursue a civil claim. Most often, though, insider trading cases are brought by the government through enforcement actions, not private claims.

How Do Prosecutors Prove Insider Trading?

To prove insider trading, prosecutors have to show that the person traded stocks or shared information based on material, nonpublic information and that they did so knowingly, often in breach of a duty. They usually rely on emails, texts, trading patterns, and witness testimony. It’s not just about what was traded, but also how and why the trade happened that helps build a case.

Who Investigates People for Insider Trading?

The U.S. Securities and Exchange Commission (SEC) is the primary agency investigating insider trading. In criminal cases, the Department of Justice (DOJ) steps in as well. Sometimes, the Financial Industry Regulatory Authority (FINRA) also flags suspicious activity. These agencies work together, often using complex data analysis and surveillance to uncover unusual trading tied to nonpublic information.

What Are the Three Types of Insider Trading?

The three main types of insider trading are:

1. Classical insider trading, where company insiders misuse confidential information for trades.
2. Tipper-tippee cases, where someone gives or receives insider information and acts on it.
3. Misappropriation, where a person outside the company uses confidential information, they weren’t authorized to share or act on. All involve trading on nonpublic information for unfair advantage.

Contact Our Insider Trading Lawyer Team Today

If you have been charged with insider trading, you need the help of a lawyer right away. W. James Payne Law Firm can help. Contact us today for more information.