Kentucky residents must take great care to make sure they follow relevant securities laws when trading stocks for their account. They cannot trade based on insider information. If they do, they may meet the same fate as a former Apple lawyer who is currently facing insider trading charges.
The attorney is alleged to have used nonpublic information about Apple’s revenues and earnings to execute stock trades for his own account. This is generally prohibited by law and can result in criminal charges. The attorney reportedly engaged in this conduct dating all the way back to 2011. Authorities say he made approximately $227,000 in profit and avoided hundreds of thousands of additional dollars in losses. Both making money and avoiding losing money through these trades are criminal violations of the law.
The attorney is claiming that the criminal charges filed against him are unconstitutional. He argues that his behavior was not specifically prohibited by any terms of the statute. He does not deny that he did what he is accused of, arguing that there was nothing specifically wrong about it. The attorney faces an uphill battle because the United States Supreme Court heard a similar case back in 2016 and did not find the insider trading laws to be unconstitutional. If convicted of the crime, the defendant can face as much as 20 years in prison and a $5 million fine.
Those who have been contacted by the government about their stock trading patterns can be in serious trouble if the government thinks they have done something wrong. A white-collar crimes attorney may help their client navigate the investigation of their conduct. There is a possibility that the defendant may be able to negotiate a plea bargain with the government. If this is not feasible, the attorney may work to defend their client against the charges in court.