Criminal Law Firm in New York: Securities Fraud Defense

New York's Martin Act, codified in the General Business Law Sections 352 through 359-h, grants the New York Attorney General uniquely broad authority to investigate and prosecute securities fraud. Unlike federal securities statutes, the Martin Act does not require proof of intent to defraud. The Attorney General only needs to demonstrate that the defendant made material misrepresentations or omissions in connection with the sale of securities. This lower burden of proof makes New York one of the most aggressive jurisdictions in the country for securities enforcement. A criminal law firm in New York that regularly handles Martin Act cases understands how to challenge the sufficiency of the state's evidence and raise affirmative defenses at the earliest stage of proceedings.

Many securities fraud cases in New York involve parallel federal investigations conducted by the Securities and Exchange Commission and the United States Attorney's Office for the Southern District of New York. Federal charges typically arise under Title 15 of the United States Code, Sections 78j and 78ff, as well as the general wire fraud statute, 18 U.S.C. Section 1343. Federal penalties for securities fraud can include up to twenty years of imprisonment per count and fines reaching millions of dollars. Because the Southern District of New York, headquartered at 500 Pearl Street in Lower Manhattan, prosecutes more white-collar cases than nearly any other federal district, defendants benefit from counsel experienced in navigating its specific procedural practices and judicial expectations.

The New York Attorney General's Investor Protection Bureau, the SEC's Division of Enforcement, and the FBI's Financial Crimes Unit frequently collaborate on complex securities cases. Investigations may involve subpoenas for financial records, electronic surveillance, cooperating witness testimony, and forensic analysis of trading patterns. During this pre-indictment phase, a skilled criminal investigations defense attorney can intervene to present exculpatory evidence, negotiate with prosecutors, or seek to narrow the scope of the inquiry. Early involvement by a criminal law firm in New York can sometimes prevent formal charges from being filed.

If state charges are filed, the defendant is arraigned in the New York County Supreme Court, located at 100 Centre Street in Manhattan. For cases involving substantial financial losses to alleged victims, judges often impose significant bail conditions, including passport surrender, travel restrictions, and electronic monitoring. Under the New York Criminal Procedure Law Section 510.10, the court considers factors such as the defendant's criminal history, community ties, financial resources, and flight risk when setting bail. A criminal law firm in New York that has established credibility before Manhattan judges can advocate persuasively for reasonable bail terms that allow the defendant to participate actively in the preparation of a defense.

A core element of securities fraud is the existence of a material misrepresentation or omission. The defense may argue that the statements at issue were opinions, forward-looking projections protected by safe harbor provisions, or immaterial details that would not have influenced a reasonable investor's decision. Establishing that the alleged misstatement was not "material" within the meaning of applicable statutes can lead to dismissal of charges. A criminal law firm in New York with deep experience in corporate fraud litigation understands how to retain forensic accountants and financial experts who can analyze the transactions and demonstrate the absence of deceptive intent.

Defendants who relied in good faith on the advice of accountants, compliance officers, or legal counsel may raise this reliance as an affirmative defense. Demonstrating that the defendant sought professional guidance, disclosed all relevant facts, and followed the recommendations received can undermine the prosecution's theory of willful misconduct. This defense is particularly relevant in cases involving complex financial products where regulatory requirements are ambiguous or evolving.

Under New York Penal Law, securities fraud may be prosecuted as a class B or class C felony depending on the amount of financial loss involved. A class B felony carries a maximum sentence of up to twenty-five years in state prison. At the federal level, the United States Sentencing Guidelines calculate a base offense level that increases with the amount of loss, the number of victims, and any leadership role the defendant played in the scheme. Criminal restitution orders may require defendants to repay the full amount of investor losses, and the government may pursue civil asset forfeiture to seize property deemed connected to the offense.

New York's legal landscape for securities cases is shaped by two courts with national reputations. The United States District Court for the Southern District of New York, based at the Daniel Patrick Moynihan Courthouse at 500 Pearl Street, handles many of the highest-profile federal bank fraud and securities prosecutions in the country. State-level cases proceed through the New York County Supreme Court, where a dedicated Commercial Division addresses complex business disputes and related criminal matters. The proximity of these courts to the Financial District and to major regulatory agencies creates an environment where securities fraud prosecutions move swiftly. Defendants need counsel who know the judges, the procedural norms, and the local legal culture that influence outcomes in these courtrooms.
If you are under investigation or facing charges related to securities fraud in New York, the decisions you make in the earliest stages of the case can shape the final result. Consulting a criminal law firm in New York that concentrates on financial crime defense allows you to understand the charges, evaluate the strength of the evidence, and develop a defense strategy tailored to the specific court where your case will be heard.