Investment Fraud Lawyer New York City NY — What Are Your Defense Options?
Investment fraud in New York City is prosecuted aggressively under both state and federal securities laws, including New York’s Martin Act (General Business Law Article 23-A) and federal statutes like the Securities Exchange Act of 1934. A conviction can lead to severe prison time, massive fines, and permanent professional disqualification.
Understanding Investment Fraud Charges in New York
Last verified: April 2026 | New York Supreme Court, New York County | New York State Legislature
Investment fraud, often referred to as securities fraud, involves deceptive practices in the stock, bond, or commodities markets that induce investors to make decisions based on false information. In New York, the Martin Act (N.Y. Gen. Bus. Law § 352 et seq.) is one of the nation’s most powerful anti-fraud laws, granting the New York Attorney General broad investigative and prosecutorial authority without needing to prove intent to defraud. This means you can face civil or criminal liability even if you did not intentionally deceive anyone. Common allegations include Ponzi schemes, insider trading, misrepresentation of financial statements, and broker misconduct. The penalties are severe, ranging from civil injunctions and disgorgement of profits to felony charges carrying decades in prison.
Official Legal Resources
For the official text of New York’s securities fraud laws, refer to the New York General Business Law Article 23-A (official New York State Senate site). For federal statutes, the U.S. Securities and Exchange Commission (SEC) website provides the full text of federal securities laws.
handling an Investment Fraud Case in NYC Courts
An investment fraud case in New York City can originate from multiple agencies, including the SEC, FINRA, the New York Attorney General’s Office, or the Manhattan District Attorney’s Office. The initial stages often involve a Wells notice or subpoena, not an immediate arrest. How you respond to these early inquiries is critical. In New York County Supreme Court, prosecutors from the Major Economic Crimes Bureau handle complex fraud cases and have extensive resources.
- Secure Immediate Legal Counsel: Do not speak with investigators or regulators without an attorney present. Anything you say can be used against you.
- Document Preservation: Implement a legal hold on all relevant documents, emails, and electronic communications. Spoliation of evidence can lead to severe sanctions.
- Case Assessment: Your attorney will analyze the allegations, the evidence, and the applicable laws (state vs. federal) to identify weaknesses in the prosecution’s case.
- Strategic Response: Develop a coordinated response strategy, which may involve negotiating with regulators, seeking a dismissal, or preparing for trial.
- Resolution or Trial: Work toward the best possible resolution, which could be a settlement, deferred prosecution agreement, or, if necessary, a vigorous trial defense.
Potential Penalties for Investment Fraud in New York
In New York City, investment fraud is typically prosecuted as a class B, C, or D felony, with penalties escalating based on the dollar amount involved and the number of victims.
| Charge | Classification | Incarceration | Fine | Additional Consequences |
|---|---|---|---|---|
| Securities Fraud (Martin Act) | Class E Felony to Class B Felony | Up to 25 years | Up to $5,000,000 or multiple of gain/loss | Disgorgement, restitution, permanent industry bar |
| Scheme to Defraud (1st Degree) | Class E Felony | Up to 4 years | Up to $5,000 or double the gain | Restitution, civil lawsuits |
| Grand Larceny (Over $1M) | Class B Felony | 5 to 25 years | Court discretion | Asset forfeiture, restitution |
Results may vary. Prior results do not aim for a similar outcome.
Why Choose Our Investment Fraud Law Firm New York City NY
Founded in 1997 by former prosecutor Mr. Sris, Law Offices Of SRIS, P.C. brings over 120 years of combined legal experience to every case. Our firm-wide track record includes over 4,739 documented case results with a favorable outcome rate exceeding 93%. We understand that an investment fraud accusation threatens not just your freedom but your reputation, career, and financial stability. Our approach is to mount an immediate, technically sophisticated defense that challenges the prosecution’s evidence and intent, often leveraging financial forensic analysis.
Case Results and Defense Strategy
Our investment fraud attorney New York City NY team has successfully defended clients against allegations from the SEC, FINRA, and state authorities. Defense strategies we employ include challenging the materiality of alleged misstatements, demonstrating lack of scienter (intent), proving reliance on advice of counsel, and negotiating favorable settlements that avoid criminal indictment. Every case is unique, and we develop a defense plan specific to the facts and legal theories at issue.
Results may vary. Prior results do not aim for a similar outcome.
Contact Our Investment Fraud Lawyer Near New York City
If you are under investigation or have been charged with investment fraud in Manhattan, Brooklyn, Queens, the Bronx, or Staten Island, immediate action is essential. Our firm is accessible to clients throughout the New York City area.
Law Offices Of SRIS, P.C.
50 Fountain Plaza, Suite 1400, Office No. 142
Buffalo, NY 14202
Toll-Free: (888) 437-7747 | Local: (838)-292-0003 | Local: (838) 292-0003
By appointment only.
We offer 24/7 phone consultations. Meetings are by appointment only at our New York location.
Frequently Asked Questions: Investment Fraud Defense
What should I do if I receive a subpoena from the SEC or FINRA?
Do not respond alone. Contact an investment fraud lawyer immediately. A subpoena is a formal demand for documents or testimony, and your response can shape the entire investigation. An attorney can negotiate the scope, advise on privileges, and craft a protective response.
Can I go to jail for investment fraud in New York?
Yes. Investment fraud is often charged as a felony in New York. Under the Martin Act and other statutes, prison sentences can range from several years to 25 years for the most severe schemes involving large financial losses or multiple victims.
What is the difference between civil and criminal investment fraud?
It depends on the prosecuting agency and the evidence. Civil cases, typically brought by the SEC or state AG, seek monetary penalties, disgorgement, and injunctions. Criminal cases, brought by the DA or U.S. Attorney, seek imprisonment. The same conduct can lead to both proceedings, so a defense must address both fronts.
How long does an investment fraud investigation take?
Investigations can last from several months to multiple years. The timeline depends on the complexity of the financial transactions, the number of parties involved, and whether it is a state or federal case. Early and strategic legal intervention can sometimes shorten this process or lead to an early favorable resolution.
What defenses are available against investment fraud charges?
Common defenses include lack of intent to defraud, good-faith belief in the statements made, materiality challenges, statute of limitations, and reliance on the advice of accountants or legal counsel. The specific defense depends entirely on the facts and documents in your case.