Texas Securities Fraud Defense Attorney

Experienced Defense Counsel for State and Federal Securities Fraud Defense Matters in Texas

Our firm represents clients across the securities industry that are facing scrutiny from the US Securities and Exchange Commission (SEC) and US Department of Justice (DOJ) in Texas. We also represent clients in private securities litigation and arbitration, and we handle enforcement matters under Texas law as well. If you are under investigation or facing charges for insider trading, stock fraud, selling unregistered securities, or any other alleged offense, we can help.

Facing allegations of securities fraud poses substantial risk. This is true whether you are facing allegations from state securities regulators or a federal law enforcement agency such as the US Securities and Exchange Commission (SEC) or the US Department of Justice (DOJ). In this scenario, engaging experienced defense counsel is essential, and targeted individuals and firms should contact an experienced Texas securities fraud defense attorney right away.

We represent investment advisory firms, brokerage firms, securities issuers, investment advisors, corporate insiders, and other clients in all types of securities fraud cases in Texas. Our legal team has extensive experience in this area, and we defend clients facing allegations ranging from failing to address regulatory compliance issues to perpetrating fraudulent schemes involving public securities offerings. We handle securities fraud cases at every stage of the process, and we focus on helping our clients avoid litigation whenever possible.

Securities Fraud Matters We Handle

Within our securities fraud defense practice, we represent clients involved in all facets of the US securities markets. We handle matters involving all regulatory agencies, and we handle matters that are administrative, civil, and criminal in nature. This includes:

Federal Securities Fraud Investigations

We defend clients during federal securities fraud investigations focused on allegations of defrauding individual and institutional investors. This includes allegations ranging from conducting noncompliant private placements to executing Ponzi schemes and pump-and-dump schemes. All parties that promote or sell securities are subject to strict—and extensive—compliance obligations under federal law, and failure to meet any of these obligations can lead to high-stakes federal scrutiny.

SEC Administrative Proceedings

The SEC’s Enforcement Division has the authority to impose administrative penalties for a wide range of statutory and regulatory violations. We defend brokerage firms, hedge funds, corporate entities, and other clients that are facing administrative penalties ranging from license and registration suspensions to permanent bars from the securities industry.

SEC and DOJ Civil Enforcement Actions

We also defend clients that are facing civil penalties for alleged federal securities law violations. Civil proceedings involving allegations of self-dealing, noncompliance with federal disclosure requirements, and other federal violations can involve substantial liability exposure under the Securities Exchange Act of 1934, Dodd-Frank Act, Sarbanes-Oxley Act (SOX), and other federal securities laws. The SEC enforces these statutes alongside the DOJ, and civil enforcement actions can potentially lead to criminal charges if the DOJ uncovers evidence (or apparent evidence) of intent to defraud.

Criminal Prosecution in Federal Court

Allegations of securities fraud can also lead to federal criminal charges in some cases. These charges carry substantial fines for both individuals and firms, and individuals can face federal prison time as well. When pursuing criminal charges under federal securities laws, the DOJ will often pursue charges for money laundering, wire fraud, and other federal crimes as well—and this can substantially increase the risks involved.

Texas Securities Fraud Cases

We also represent clients that are facing investigations and civil and criminal enforcement actions under Texas law. All forms of securities fraud are subject to severe penalties under the Texas Securities Act, with many violations creating exposure to felony charges. The Act has a five-year statute of limitations, potentially allowing prosecutors to file criminal charges related to several years’ worth of allegations. While most criminal cases involve third-degree felony charges that carry up to a $10,000 fine and 2-10 years of imprisonment, state prosecutors can also pursue second-degree and first-degree felony charges in some cases.

Civil Litigation Involving Federal Securities Laws

Along with handling federal and state enforcement actions, we also defend clients in civil litigation involving federal securities laws. In these cases, mounting a successful defense often requires extensive forensic accounting and financial analysis in order to counter plaintiffs’ fraud allegations. As a result, our attorneys rely heavily on outside experts to build and execute comprehensive defense strategies in these cases, and we have a network of trusted experts who are available to assist as needed.

Securities Arbitration (FINRA Arbitration)

We also defend individuals and firms in Financial Industry Regulatory Authority (FINRA) arbitration cases. We handle cases involving alleged violations of federal securities laws and FINRA rules, which often go hand-in-hand. FINRA arbitration provides a forum for individual investors who have lost money to seek to recover their investment losses on numerous grounds; and, as a result, avoiding unnecessary liability requires a comprehensive defense strategy focused on the specific allegations at hand.

5 Common Allegations in Securities Fraud Enforcement Cases

While securities fraud enforcement cases can involve numerous allegations, some allegations are particularly common. For example, some of the most common allegations we see in SEC and DOJ enforcement actions include:

1. Securities Act and Securities Exchange Act Violations

The Securities Act of 1933 focuses on the original issuance of securities in the primary market, while the Securities Exchange Act of 1934 focuses on secondary sales. While both of these statutes are now nearly a century old, they continue to play a central role in federal securities fraud enforcement. From conducting noncompliant initial public offerings (IPOs) to selling away (which involves recommending unapproved investments to clients) and executing Ponzi schemes (which involve paying earlier investors with new investors’ funds), the Securities Act and Securities Exchange Act cover an extremely wide range of fraudulent practices.

2. Sarbanes-Oxley Act (SOX) Violations

The Sarbanes-Oxley Act (SOX) established additional corporate recordkeeping and accounting requirements for securities issuers. The SEC established a new SOX Group within its Enforcement Division in 2026, making clear that enforcing SOX compliance remains among its top priorities. While most SOX enforcement cases are civil in nature, the statute also includes provisions for substantial criminal penalties in cases involving knowing and willful violations.

3. Rule 10b-5 Violations

The SEC’s Rule 10b-5 prohibits insider trading. It also prohibits other fraudulent practices involving misrepresentations and omissions made in connection with the issuance or sale of corporate securities. Rule 10b-5 is rooted in Section 10(b) of the Securities Exchange Act; and, as a result, insider trading cases under the rule have the potential to lead to serious federal criminal charges.

4. Investment Advisors Act and Investment Company Act Violations

The Investment Advisors Act of 1940 and Investment Company Act of 1940 govern advisors’ and advisory firms’ practices in relation to working with their customers. The Investment Company Act also regulates mutual funds and other types of investment companies. Similar to the Securities Act and Securities Exchange Act, the Investment Advisors Act and Investment Company Act are extremely broad in scope, and numerous forms of noncompliance can lead to invasive scrutiny and substantial penalty exposure.

5. Breach of Fiduciary Duty

Investment advisers and broker-dealers owe strict fiduciary duties to their clients. Unauthorized trading, excessive trading, ignoring clients’ investment objectives, providing self-interested investment advice, providing unsuitable investment recommendations, misappropriating funds from client accounts, and other breaches of advisors’ and brokers’ fiduciary duties can lead to substantial civil or criminal liability.

We commonly see similar allegations in securities fraud enforcement cases under Texas law as well. The Texas Securities Act contains broad prohibitions that apply to participants across the securities industry, and the Texas Attorney General’s Office can pursue a wide range of other charges in civil and criminal enforcement actions as well.

Why Brokerage Firms, Financial Professionals, Securities Issuers, Corporate Insiders and Others Choose The Criminal Defense Firm

When facing securities fraud allegations, executing a proactive and strategic defense is essential for avoiding unnecessary consequences. This is true regardless of the circumstances involved.

As a result, your choice of legal representation matters. Here are just some of the reasons why brokerage firms, financial professionals, securities issuers, corporate insiders, and others choose the experienced securities fraud attorneys at The Criminal Defense Firm:

• Our Proactive Approach to Securities Fraud Defense – We take a proactive approach to defending clients in securities fraud cases that focuses on resolving investigative inquiries before they lead to formal charges. If it is too late to avoid formal charges, we focus our efforts on achieving a favorable pre-trial resolution—by securing pre-trial dismissal if possible, and by negotiating a favorable plea agreement resulting in reduced charges or penalties if warranted.

• Our Team of Experienced Senior Defense Attorneys – Our securities fraud defense team is composed entirely of senior-level attorneys who have extensive experience handling high-stakes cases. For many of our attorneys, this includes prior experience prosecuting securities fraud at the DOJ. As a result of our experience, we are able to provide immediate insights to clients that are facing scrutiny, and we are able to get to work protecting our clients’ interests immediately.

• Our Focus on Pre-Charge Resolution – As discussed above, we focus our efforts on helping our clients avoid formal charges whenever possible. This eliminates the uncertainty involved in the process and allows our clients to make informed, forward-thinking decisions based on the risks at hand and the options they have available. While we negotiate with state and federal authorities when it is in our clients’ best interests to do so, we work to help our clients avoid liability entirely whenever possible.

• Our Track Record of Success in High-Stakes Cases – We have a proven record of success in high-stakes cases, including cases involving serious federal securities fraud allegations. While past results do not guarantee future success, we rely on the insights gained from our past experience to formulate defense strategies focused on protecting our clients’ interests as fully and efficiently as possible. If you would like to know more about our experience in the area of securities fraud defense, we invite you to get in touch.

• Our Commitment to Protecting Our Clients By All Available Means – Above all, our clients trust us because they know we will fight to protect their best interests by all available means. We are relentless advocates for our clients, and we force federal investigators and prosecutors to prove that our clients deserve to be prosecuted. If the government cannot meet its burden of proof, we focus on making this clear—and we use this to seek a favorable resolution without the need to go to trial.  

We provide complimentary initial consultations, and we are available to provide defense representation on an emergency basis when necessary. In both federal and state securities fraud cases, early intervention can be essential for mitigating the potential penalties resulting from a high-stakes investigation. By executing proactive defense strategies on behalf of our clients, we are able to help them avoid indictments and criminal prosecutions in many cases.

We can only execute a proactive defense strategy on your behalf if you contact us in time. With this in mind, if you, your firm, or your company is under investigation or facing charges, we strongly encourage you to contact us immediately.

FAQs: Defending Against Securities Fraud Allegations in Texas

What should I do if I am under investigation (or my company or firm is under investigation) for securities fraud in Texas?

When facing a securities fraud investigation, there are a few steps that it is critical to take immediately. If you are under investigation (or your company or firm is under investigation) by the SEC, DOJ, or TSSB, you should:

• Promptly engage defense counsel who has specific (and extensive) experience representing clients in securities fraud cases;
• Work with your defense counsel to preserve relevant documents and maintain control over all communications during the government’s investigation; and,
• Conduct an attorney-client privileged risk assessment, and then use the outcome of this assessment to formulate a defense strategy that is tailored to the circumstances at hand.

Taking these three steps will help set the stage for an effective defense. If you need experienced defense counsel for a securities fraud investigation in Texas, we can arrange for you to speak with one of our senior attorneys right away.

What should I avoid doing during a securities fraud investigation?

When facing a securities fraud investigation, taking protective measures and avoiding costly mistakes are equally important. For example, if you (or your company or firm) is facing scrutiny from the SEC, DOJ, or TSSB, you should not:

• Make any assumptions about what investigators will find or what allegations prosecutors may attempt to pursue;
• Voluntarily provide any documentation (including compliance documentation) to state or federal authorities except on the advice of your defense counsel; or,
• Ignore subpoenas or other means of inquiry during the government’s investigation, as doing so can have serious adverse consequences.

These are just examples. There are many other mistakes you need to avoid in this scenario as well. Once you engage our firm, our senior attorneys will be able to walk you through everything you need to know in order to make sound and strategic decisions.

When can securities fraud be prosecuted as a federal crime?

Securities fraud can be prosecuted as a federal crime when the DOJ uncovers evidence of knowing or willful violations of the law. While inadvertent noncompliance may warrant administrative or civil enforcement, it is not a criminal offense.

With that said, allegations of criminal securities fraud can take many different forms; and, in many cases, federal prosecutors will rely on “constructive knowledge” to substantiate criminal charges. This is true in cases involving unregistered securities offerings, pump-and-dump schemes, insider trading, and other criminal offenses. Defending against federal criminal charges requires a defense strategy that is custom-tailored to the circumstances at hand; and, in many cases, this will involve building a strategy focused on disputing the DOJ’s evidence of knowledge (or “constructive knowledge”) or intent.

When can securities fraud be prosecuted as a state crime in Texas?

Texas law criminalizes knowingly making false statements in securities filings, among other knowing and willful violations. As with federal criminal cases, in state criminal cases, convictions can lead to substantial fines and prison time for the individuals involved.

Does your firm handle cases under Texas’s state securities laws?

Yes, along with handling federal securities fraud cases in Texas, we also handle investigations and enforcement actions under Texas law, including the Texas Securities Act. The Texas State Securities Board (TSSB) vigorously enforces compliance at the state level and works with the Texas Attorney General’s Office to pursue civil and criminal enforcement actions as warranted.

Speak with an Experienced Securities Fraud Attorney in Confidence

If you would like to speak with one of our experienced securities fraud attorneys in confidence, we encourage you to contact us promptly. Call 866-603-4540 or contact us online to schedule a free consultation as soon as possible.

Related pages:

• Dallas Securities Fraud Defense Attorney
• Fort Worth Securities Fraud Defense Attorney