San Francisco Insider Trading Attorney: Strong Legal Defense

Facing insider trading charges in San Francisco? The Law Office of Valery Nechay can provide a strong legal defense and help you fight your charges. Learn how our insider trading attorney can protect your rights and secure your future.

Why You Need an Insider Trading Lawyer

Insider trading refers to the buying or selling of a publicly traded company’s stock by someone who has non-public, material information about that stock. It is a serious offense because it gives an unfair advantage and undermines the integrity of financial markets.

A conviction can lead to severe penalties, including hefty fines and long prison sentences. Additionally, professional reputations and career prospects can suffer irreparable damage.

At The Law Office of Valery Nechay in San Francisco, we offer robust defense for individuals accused of insider trading. We combine legal knowledge with litigation experience to navigate the complex legal process and advocate for our clients zealously. Our local experience and deep understanding of federal insider trading laws allow us to provide sophisticated legal counsel. 

Understanding Insider Trading

Insider trading involves buying or selling a company’s securities based on confidential information not available to the public. Legally, individuals with access to such material nonpublic information must refrain from trading the company’s securities until that information is made public. This requirement, outlined in federal laws such as the Securities Exchange Act of 1934, aims to maintain fairness in the market, providing a level playing field for all investors.

There is a distinction between legal and illegal insider trading. Legal insider trading occurs when corporate insiders—executives, directors, and employees—buy or sell stock in their own companies while adhering to the company’s policies and reporting their trades to the U.S. Securities and Exchange Commission (SEC) under Rule 10b5-1. Illegal insider trading, however, involves buying or selling a company’s stock by someone who possesses material nonpublic information—information that could significantly impact an investor’s decision to trade if it were publicly known. This illegal activity is prohibited under Section 10(b) of the Securities Exchange Act and Rule 10b-5, and the SEC enforces these regulations, taking action against those suspected of engaging in such practices.

In California, insider trading laws are aligned with federal regulations. Under California Penal Code Section 25540, individuals convicted of insider trading can face severe penalties, including fines and imprisonment. The California Department of Business Oversight also plays a role in investigating and prosecuting securities violations within the state. Understanding these laws and their implications helps uphold the integrity of the financial markets.

The Legal Consequences of Insider Trading

Violating insider trading rules leads to severe legal consequences. Criminal penalties can include time in prison, highlighting the serious stance the U.S. criminal justice system takes against financial crimes. Those found guilty can also face steep fines, underscoring society’s condemnation of gaining an unfair market advantage and betraying shareholders’ trust.

Civil penalties, defined under laws like 15 U.S. Code § 78u–1, impose additional monetary fines. These fines are typically based on the amount gained or the loss avoided due to illegal trading. Individuals may also be required to disgorge profits earned from illegal trades, meaning they must give up the money made from their illegal activities. These sanctions emphasize the importance of complying with insider trading laws, particularly 17 CFR § 240.10b5-1, which prohibits trading based on material non-public information.

Both criminal and civil outcomes of an SEC investigation reflect the effort to preserve market integrity and public confidence in financial systems.

Key Stages of an Insider Trading Case

The key stages of an insider trading case, aligning with California and federal law and best practices, involve several critical steps:

Investigation and Charges:

  • Insider trading investigations typically begin with the SEC and can involve the DOJ, reflecting standard practice.
  • Internal investigations are common in building evidence for such cases.
  • The SEC is responsible for reviewing evidence and determining if enforcement actions are needed, which aligns with their regulatory role.
  • Charges being prepared and the case moving to federal courts is a standard procedure.

Trial and Defense:

  • The trial process in federal court involves the prosecution presenting its case and the defense challenging the allegations, which is accurate.
  • The mention of settlements and plea agreements is correct, as these are possible resolutions in such cases.
  • The importance of a strong defense is accurately highlighted, as it plays a crucial role in the trial’s outcome.

Focusing on these key stages makes the process of handling an insider trading case under California and federal law clearer, highlighting the importance of thorough investigation and robust defense.

How The Law Office of Valery Nechay Can Help

Facing insider trading charges can be daunting, but having a skilled criminal defense attorney can make all the difference. At The Law Office of Valery Nechay, we understand the intricacies of white-collar crime in California and are dedicated to providing personalized defense strategies for our clients in San Francisco. Here’s how we can help:

  • Free Initial Consultation: We offer a no-obligation consultation to discuss the details of your case and understand your specific needs.
  • Personalized Defense: We create defense strategies tailored to your unique situation, using our extensive knowledge of California law to aim for the best possible outcome.
  • Comprehensive Support: We guide you through every step of the legal process, ensuring you understand your options and feel supported.

Our approach involves thorough preparation and a deep understanding of both federal and state laws related to insider trading. Here’s a look at some of the strategies we might employ:

Challenging the Evidence

We scrutinize the evidence presented by the prosecution to identify any weaknesses or inconsistencies. This can involve questioning the validity of the information used to accuse you of insider trading.

Demonstrating Lack of Intent

Insider trading charges often hinge on the intent to use non-public information for personal gain. We work to show that there was no intention to commit a crime.

Proving Public Knowledge

We could argue that no insider trading took place if the information in question was already public or widely known.

Violation of Rights

We ensure that your rights were not violated during the investigation or arrest. Any breach of your constitutional rights can be grounds for dismissing the charges.

Negotiating Plea Deals

If a trial is not in your best interest, we negotiate with prosecutors to reduce charges or penalties through a plea agreement.

At The Law Office of Valery Nechay, we are committed to protecting your rights and providing a strong defense against insider trading charges. Our knowledge of the San Francisco Bay Area legal landscape and our focus on white-collar criminal defense ensure that you have a dedicated advocate on your side. Contact us for a free consultation and take the first step toward building a robust defense.

Contact The Law Office of Valery Nechay

Are you facing insider trading accusations? These legal challenges can be overwhelming and have a major impact on your career and life. Insider trading cases are complex and require a strong defense to protect your rights.

At The Law Office of Valery Nechay, we have the experience and knowledge to handle these intricate cases. With years of criminal defense experience, we are prepared to tackle the nuances of your situation, no matter how complicated. Our commitment to justice and dedication to our clients drive our approach to every case.

Take the first step to protect your future. Contact us for a consultation. We are ready to provide the guidance and support you need to defend your rights and interests. Reach out to The Law Office of Valery Nechay today, and let us help you navigate this challenging time.


If you are under investigation or charged with a crime, I will consult with you in person and at no charge to you.