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First Criminal Conviction for Spoofing May Increase Scrutiny for Other U.S. Businesses

 Posted on December 00, 0000 in White Collar Crimes

Wisconsin defense attorney, Wisconsin criminal lawyer, Wisconsin white collar crimes attorneyIn today’s technologically savvy world, fraud is more rampant than ever. Foreign “companies” promise products or services that they cannot deliver on. Unsuspecting Americans are pulled into counterfeit fraud. And companies are able to manipulate the markets in order to fool investors and increase their stock. This last offense — otherwise known as spoofing— has only recently seen its very first criminal conviction. As such, many U.S. businesses may be facing increased scrutiny in how they conduct business, making them more susceptible to accusations of fraudulent activity.

Spoofing and the Market

Manipulation of the stock market is not a new concept; companies, both small and large, have been trying to do it for years. For the most part, such actions were largely unsuccessful, but relatively new high-frequency trading tools have made spoofing much easier to do, and with less risk of detection. In fact, the government has had a hard time keeping up with the activity until recently, unsure of how to convict and prove such actions. However, the recent verdict indicates they may have found a way to start analyzing and criminally convicting businesses, in mass.

Drawbacks to the Recent Spoofing Conviction

Although there are certainly benefits for consumers and investors when it comes to convicting fraudulent spoofers, there is also a drawback for U.S. businesses; it extends, even to companies not participating in such activities: increased scrutiny and accusations of fraudulent federal offenses.

The market can and does change rapidly. Businesses — even those working honestly — sometimes experience large numbers of orders that are placed and then cancelled. Circumstances such as this can tip off federal officials, leading them to investigate a company that may not have participated in spoofing, but was simply victim to a fickle market.

Facing Federal Charges? Contact an Experienced Attorney Today

When faced with white collar crimes, it is best to seek the services of an experienced criminal defense attorney early in the investigation phase. Able to assist you in understanding and defending your rights, they can guide you through the legal process, inform you on how to proceed, and provide you with a chance at the best possible outcome for your case.

Dedicated to providing honest and passionate representation, the Law Offices of Gimbel, Reilly, Guerin & Brown, LLP, have been serving the Wisconsin area since 1968. They have provided services to both individuals and businesses in a wide array of cases, including some of the most high-profile cases in the country. Schedule your consultation with one of our skilled Milwaukee criminal defense attorneys by calling us at 414-271-1440 today.



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