What Is Federal Securities & Investment Fraud in Missouri?
Federal securities fraud refers to any scheme that defrauds investors, manipulates markets, or misrepresents material information in connection with the purchase or sale of securities. These cases are generally prosecuted under 15 U.S.C. §§ 78j(b), 77q(a) (the Securities Exchange Act and Securities Act) and related statutes, with criminal penalties pursued by the DOJ and civil enforcement by the SEC.
A single charge can lead to prison, massive fines, asset freezes, and permanent damage to your reputation and career. Even an investigation can trigger professional license suspensions and public disclosure of allegations.
At Combs Waterkotte, our federal criminal defense lawyers in Missouri know how to take control early, challenge the government’s narrative, and protect what matters most—your freedom, your business, and your future. We combine aggressive courtroom advocacy with strategic negotiations to deliver results for professionals, executives, and investors facing securities fraud allegations in Missouri’s federal courts.
We help people just like you in Missouri fight the consequences of these charges. Call Combs Waterkotte's federal securities and investment fraud team right away at (314) 900-HELP or reach out online for a free, confidential consultation.
What are Examples of Federal Securities & Investment Fraud in Missouri?
Some examples of securities and investment fraud our Missouri federal defense attorneys have experience with include:
- Insider trading — buying or selling based on material nonpublic information.
- Market manipulation — pump-and-dump schemes, spoofing, wash trades.
- Misrepresentation — false statements in prospectuses or financial reports.
- Ponzi schemes — using new investor funds to pay returns to earlier investors.
- Investment adviser fraud — failing to disclose conflicts of interest or misusing client funds.
What Happens During a Federal Securities Fraud Case in Missouri?
Federal securities fraud cases can unfold over months or even years. Knowing what to expect helps you stay ahead of prosecutors and protect your rights. Every case is unique, but here’s a typical sequence:
Step 1: SEC or FINRA Investigation
Investigators quietly review trading records, subpoena documents, and interview witnesses before you even know you’re being investigated. Some cases start with a whistleblower complaint or suspicious trading activity report.
Step 2: Wells Notice or Subpoena
You may receive a Wells Notice from the SEC, notifying you of potential charges, or be subpoenaed for testimony and records. This is the earliest and best point to involve a federal criminal defense lawyer in Missouri.
Step 3: DOJ Referral & Criminal Investigation
Serious cases are referred to the Department of Justice or U.S. Attorney’s Office for criminal prosecution. Federal prosecutors may convene a grand jury to issue indictments.
Step 4: Indictment & Arrest
Once an indictment is secured, you may be arrested or summoned for your first court appearance in Missouri’s Eastern District (St. Louis) or Western District Court (Kansas City).
Step 5: Arraignment & Pretrial Motions
Your federal defense attorney will enter a plea and begin filing motions to suppress unlawfully obtained evidence, exclude prejudicial material, or dismiss weak counts.
Step 6: Discovery & Investigation
Both sides exchange evidence. Your federal securities and investment fraud defense lawyer may retain forensic accountants, economists, or compliance experts to analyze data and build your defense.
Step 7: Plea Negotiations or Trial
Many cases settle through plea deals, but Combs Waterkotte prepares each case as if it will go to trial—leveraging readiness to negotiate better outcomes.
Step 8: Sentencing & Post-Conviction Options
If convicted, sentencing follows federal guidelines. We argue for downward departures, probationary sentences, or restitution plans that minimize prison time. Appeals may be available if errors occurred.
Bottom Line: Federal securities fraud cases move fast and can trigger parallel civil and criminal actions. The earlier you retain an experienced federal defense team in Missouri, the more leverage you have to protect your freedom, your license, and your financial future.
Elements of a Federal Securities Fraud Case
To secure a conviction for securities fraud, federal prosecutors must prove each of the following elements beyond a reasonable doubt:
| Element | What It Means |
|---|---|
| Material Misrepresentation or Omission | The defendant made a false statement or omitted important facts that a reasonable investor would consider important. |
| Scienter (Intent) | The government must show the defendant acted willfully or knowingly, not by mistake or negligence. |
| Connection with the Purchase or Sale of Securities | The fraud must be directly related to securities transactions or investment decisions. |
| Reliance | Investors relied on the statement or omission when making their investment decisions. |
| Loss Causation | The misrepresentation or scheme caused economic harm to investors. |
Challenging even one of these elements can result in dismissal or acquittal, which is why our federal defense strategy focuses on attacking the government’s proof at every stage.
Penalties for Securities Fraud in Missouri
The consequences of a federal securities fraud conviction are devastating and can include:
- Up to 20 years in federal prison for each count of securities fraud or wire fraud.
- Massive fines — often millions of dollars, or twice the gain/loss caused by the fraud.
- Restitution orders to compensate alleged victims.
- Asset forfeiture of ill-gotten gains or property connected to the offense.
- SEC civil penalties and lifetime bans from serving as an officer or director of a public company.
- Reputational harm that can permanently end careers in finance or business.
Defenses to Securities & Investment Fraud Charges
At Combs Waterkotte, we know that not every market loss is a crime. We develop aggressive defenses that may include:
- Lack of Intent: Proving that mistakes or bad business decisions were not fraudulent acts.
- No Material Misstatement: Showing the alleged misrepresentation was immaterial or accurate.
- Insufficient Evidence: Challenging trading records, expert testimony, or the causal link between actions and investor losses.
- Good Faith Reliance: Demonstrating reliance on accountants, lawyers, or compliance officers.
- Constitutional Challenges: Suppressing evidence obtained through unlawful searches, seizures, or subpoenas.
Impact on Professional Licenses and Career in Missouri
A federal securities fraud charge doesn’t just threaten your freedom, it can end your career. Convictions and even pending charges can result in:
- FINRA Bars: Permanent or temporary bans from acting as a broker or investment adviser.
- License Revocations: Loss of Series 7, Series 63, or other securities licenses.
- Regulatory Disclosure: Disciplinary history becomes public in CRD and BrokerCheck databases.
- Loss of Professional Credentials: Potential impact on CPA licenses, law licenses, or fiduciary positions.
- Employment Fallout: Termination from financial firms and difficulty finding future work in regulated industries.
- Reputational Damage: Media coverage and public filings can permanently harm business and personal relationships.
Because these consequences begin long before a verdict is reached, the Combs Waterkotte federal securities and investment fraud defense team moves quickly to protect your reputation and preserve your ability to work in your profession while your case is pending in Missouri.
Federal Securities & Investment Fraud FAQ
Do SEC investigations always lead to criminal charges?
No. Some are resolved with civil penalties or no action at all. Early legal representation can help prevent escalation to the DOJ.
Can I be charged even if I didn’t profit in Missouri?
Yes. Prosecutors only need to show you engaged in fraudulent conduct, regardless of personal gain.
What agencies investigate securities fraud?
The SEC, DOJ, FBI, FINRA, and sometimes the CFTC collaborate on complex investigations.
Will my assets be frozen in Missouri?
In many cases, yes — prosecutors can seek asset freezes or restraining orders. We fight to release funds for living expenses and defense costs.
Do these cases usually go to trial?
Not always. Many securities fraud cases resolve through settlements or plea agreements, but we prepare every case as if it will be tried before a jury.
Important: The sooner you get expert legal representation, the more options you have. Early intervention allows us to respond to subpoenas, limit exposure, and in some cases, stop an indictment before it happens.
Why Choose Combs Waterkotte for Your Securities Fraud Case in Missouri
Choosing the right federal defense lawyer can make all the difference. At Combs Waterkotte, our approach to securities and investment fraud cases is rooted in relentless preparation, client-first service, and decades of courtroom success.
- Personalized Defense: We work closely with you, explaining every step of the process and aligning our strategy with your goals. You stay informed and in control.
- Prepared for Trial: We assume every case could go before a jury. This mindset not only strengthens your defense but also gives us powerful leverage in negotiations.
- Powerful Resources: Our team uses top-tier forensic accountants, investigators, and expert witnesses to dissect the government’s case and expose its flaws.
- Proven Experience: With over 60 years of combined federal trial experience, we know Missouri’s federal courts inside and out. And how to get results.
When the government comes after you, you need a federal securities and investment fraud defense lawyer who won’t back down. We fight to protect your freedom and reputation.
