Financial advisement is a prominent business in Houston, Katy and the surrounding areas of Texas. People who are trying to safeguard their money or find strategies to profit will generally need professional guidance. For advisers, there is significant scrutiny from the Securities and Exchange Commission (SEC) on how they do business. Allegations of wrongdoing can be problematic in a legal and professional sense. If vulnerable people were said to have been victimized, it can create a negative perception of the company even if they did nothing wrong or there is a reasonable explanation. Regardless of the circumstances and the accusations, there are viable strategies to lodge a defense.
Investment company faces SEC charges for defrauding elderly people
The president of an investment company and two others were arrested for taking $3.7 million from elderly investors and committing fraud. According to the SEC, the company president, his brother and one of its representatives stated they were professional advisers and understood how to place clients’ money in low-risk investments with known companies. However, the investments were shifted to higher-risk securities that were not what was promised.
The illegal activities were said to have taken place from early 2016 through late 2018. Around 70 people invested the money. The SEC says that the president was not experienced in investments prior to starting the company and the business in general did not know about the alternative investments it tried to sell. The clients’ investments were said to have been put into companies that were owned by the purported advisers or their associates. There were also fake documents formulated to perpetuate the fraud.
Understanding and defending white collar crimes
While violent crimes and cases with overt theft are often categorized as “serious,” white collar crimes like securities fraud and embezzlement can result in penalties that are just as harsh if not worse. Frequently, people facing these charges are completely unfamiliar with what it means to be arrested and accused of wrongdoing. They might be well-educated and respected in the community. Some of these charges arise from a misunderstanding or a mistake. Many activities can result in this type of arrest including mail fraud, bank fraud, securities fraud and identity theft. Given the consequences for a conviction including the potential inability to work in the financial field again, those who were arrested in this case and anyone else dealing with white collar crime charges should be prepared to craft a defense with help from a qualified professional.