Securities Fraud Lawyer New York City NY — What Are Your Defense Options?
Securities fraud in New York City is a serious white-collar crime prosecuted under both state and federal law, carrying severe penalties including lengthy prison sentences and multi-million dollar fines. As a former prosecutor with a background in complex financial systems, Mr. Sris of Law Offices Of SRIS, P.C.
What Is Securities Fraud Under New York Law?
Securities fraud, often referred to as investment fraud, involves deceptive practices in the stock or commodities markets that induce investors to make purchase or sale decisions based on false information. In New York, these cases are frequently prosecuted under the Martin Act (N.Y. Gen. Bus. Law § 352-c), one of the nation’s broadest anti-fraud statutes, as well as under federal securities laws like the Securities Exchange Act of 1934. The Martin Act empowers the New York Attorney General to investigate and prosecute fraud without needing to prove the defendant’s intent to defraud, making it a powerful tool for state enforcement.
Last verified: April 2026 | New York Supreme Court, New York County | New York State Legislature
Official Legal Resources for Securities Fraud
Understanding the statutes and court procedures is critical. You can review the New York Martin Act (N.Y. Gen. Bus. Law § 352-c) on the official New York State Senate website. For federal matters, the U.S. Securities and Exchange Commission (SEC) provides enforcement information. The New York Supreme Court, New York County website has local rules for civil and criminal proceedings.
Local Procedural Insights for New York City Securities Cases
In New York City, securities fraud cases are often initiated by a parallel investigation—where both the SEC pursues civil charges and the U.S. Attorney’s Office for the Southern District of New York pursues criminal charges simultaneously. This requires a defense strategy that addresses two fronts at once. The New York Attorney General’s Investor Protection Bureau also actively pursues cases under the Martin Act, which can lead to both civil penalties and criminal prosecution.
- Receive a subpoena or Wells Notice. This is the first formal indication of an investigation by the SEC, FINRA, or a grand jury.
- Secure immediate legal counsel. Do not speak to investigators or provide documents without an attorney. A securities fraud attorney in New York City, NY, can manage communications.
- Conduct an internal case assessment. Your lawyer will review all communications, trades, and disclosures to identify strengths and weaknesses.
- Engage in pre-charge negotiations. This may involve presenting exculpatory evidence to prosecutors or regulators to avoid formal charges.
- Prepare for litigation or settlement. If charges are filed, your defense team will build a case for trial or negotiate a settlement that may involve disgorgement, fines, or other terms.
Potential Penalties for Securities Fraud in New York
In New York City, securities fraud can be charged as a felony with penalties ranging from significant fines to decades in prison, depending on the loss amount and the statute invoked.
| Charge/Statute | Classification | Incarceration | Fines | Additional Consequences |
|---|---|---|---|---|
| Martin Act (N.Y. Gen. Bus. Law § 352-c) | Class E Felony to Class B Felony | Up to 25 years | Up to $5 million or multiple of gain/loss | Disgorgement, restitution, industry bar |
| Securities Exchange Act Violations (Federal) | Federal Felony | Up to 25 years per count | Up to $5 million for individuals | SEC civil penalties, forfeiture, permanent injunction |
| Mail/Wire Fraud (18 U.S.C. § 1343) | Federal Felony | Up to 20 years | Up to $250,000 | Often charged alongside securities fraud |
Results may vary. Prior results do not aim for a similar outcome.
Why Choose Our Securities Fraud Law Firm in New York City, NY
Founded in 1997 by former prosecutor Mr. Sris, Law Offices Of SRIS, P.C. brings a unique perspective to white-collar defense. Mr. Sris’s background in accounting and information systems provides a distinct advantage in dissecting complex financial evidence, trading algorithms, and digital communications that are central to modern securities fraud cases. Our firm-wide experience spans over 120 combined years, with a track record of handling intricate financial investigations.
Case Results and Client Advocacy
Our approach focuses on rigorous investigation and challenging the prosecution’s evidence. We scrutinize the source of information, the timing of trades, and the materiality of alleged misstatements. A favorable outcome in a securities fraud case might involve convincing the SEC not to recommend an enforcement action, negotiating a settlement without criminal charges, or securing an acquittal at trial.
Results may vary. Prior results do not aim for a similar outcome.
Contact Our Securities Fraud Defense Team in New York City
Our firm is positioned to defend clients throughout New York City. 24/7 phone consultations — (888) 437-7747 | Local: (838)-292-0003 — meetings by appointment only.
Law Offices Of SRIS, P.C.
50 Fountain Plaza, Suite 1400, Office No. 142
Buffalo, NY 14202
By appointment only.
We serve clients in Manhattan, Brooklyn, Queens, the Bronx, Staten Island, and surrounding areas.
Frequently Asked Questions: Securities Fraud Defense
What is the first thing I should do if I’m under investigation for securities fraud?
Yes, contact a securities fraud lawyer immediately. Do not speak to SEC officials, FINRA investigators, or law enforcement without counsel. Anything you say can be used against you, and early legal guidance is crucial to protect your rights and shape the investigation’s direction.
Can I go to jail for insider trading in New York?
Yes. Insider trading is a federal crime punishable by up to 20 years in prison per count under 15 U.S.C. § 78ff. It can also be prosecuted under New York state law. The sentence depends on the gain, your role, and your criminal history.
What’s the difference between an SEC investigation and a criminal case?
It depends. An SEC investigation is civil/administrative and can result in fines, disgorgement, and industry bars. A criminal case, brought by the DOJ or state prosecutors, can lead to prison. These often run as “parallel proceedings,” where evidence from the SEC case is used in the criminal case, making coordinated defense essential.
How long does a securities fraud investigation take?
Months to several years. SEC investigations can be lengthy. The timeline depends on the case’s complexity, the volume of documents, and whether the agency is seeking a settlement or preparing for litigation. A skilled securities fraud attorney in New York City, NY, can sometimes negotiate a resolution to shorten the process.
What defenses are available against securities fraud charges?
Several. Common defenses include lack of intent to defraud (scienter), the information was not material, the trades were based on public information, or there was no causal connection between the alleged fraud and the investor’s loss. Each case requires a detailed, evidence-specific strategy.