Securities Fraud Fundamentals: Criminal vs. Civil Proceedings, Private Litigation, and Agency Involvement

This CLE course will provide a fundamental overview of securities fraud, including criminal and civil enforcement actions and private litigation. This focused 90-minute program is designed for attorneys new to fraud matters who want to understand how securities fraud proceedings are initiated, investigated, and resolved.

A serious white-collar crime, securities fraud can be prosecuted both criminally and/or civilly. The SEC enforces securities fraud under the Securities and Exchange Act of 1934, often as the plaintiff in these matters, but private plaintiffs can have standing to bring suit. The Financial Industry Regulatory Authority (FINRA), a self-regulatory organization for broker-dealers, also investigates and enforces securities fraud matters under federal law. Fraud allegations arise when investors are misled about the sale or purchase of a security, and may also involve market manipulation. Examples include investment fraud, Ponzi schemes, broker embezzlement, falsified corporate filings, share price manipulation, and more.

Companies or individuals facing a civil enforcement action by the SEC and/or FINRA may find themselves facing simultaneous, parallel criminal prosecution led by the U.S. Department of Justice (DOJ) or a U.S. Attorney. When civil and criminal proceedings intersect, understanding interagency information sharing is critical and consequences are far-reaching. These complex matters involve significant fines, criminal exposure, and costly defenses so it is imperative for practitioners to have a solid understanding of case development.

During this webinar, our esteemed faculty will examine the life cycle of a securities fraud matter, from inquiry to subpoena to Wells notice to trial, highlighting current enforcement trends. The elements of fraud and the parties and agencies involved will be discussed, including when securities fraud is pursued criminally, civilly, or both. Time will be spent discussing how civil enforcement actions, criminal prosecutions, and private securities litigation (class actions and derivative suits) proceed in parallel and influence strategy and outcomes. 

Listen as our panel examines how securities fraud enforcement, criminal prosecutions, and private litigation unfold and offers practical guidance for navigating parallel proceedings across multiple forums and effective defense strategies.