Securities Fraud Defense Attorney in Houston

Financial investigations are rarely sudden; they often develop quietly over months through regulatory audits, subpoenaed bank records, and informal interviews. By the time you realize you are under scrutiny, prosecutors may already be drafting a formal indictment.

When you hire the John T. Floyd Law Firm, you gain a dedicated team that immediately steps between you and government agents. We take over all communications, conduct an independent audit of the financial records, and craft a discreet, aggressive defense strategy designed to protect your freedom and keep your name clear.

Do not wait for charges to be filed. The moment you suspect you or your business are under regulatory or law enforcement scrutiny, contact our Houston defense team.

Why Choose John T. Floyd Law Firm

Protect yourself: Always consult with an attorney before speaking with federal agents, as false or misleading statements can lead to separate criminal charges.

When state or federal authorities turn their focus on your financial transactions, you cannot afford to wait and see. Securities fraud cases involve intricate statutes, complex forensic accounting, and high-stakes courtrooms where an initial mistake can cost you years of your life.

John T. Floyd Law Firm provides the specialized knowledge, courtroom experience, and deep investigative resources needed to dismantle the government’s case before or during trial.

Expect a Personalized Approach

Securities regulations in Texas fall under the Texas Securities Act (Title 19 of the Texas Civil Statutes, commonly known as the Blue Sky Law). Under this law, a “security” is defined broadly. It isn’t just limited to stocks but includes bonds, notes, limited partnership interests, oil and gas rights, and investment contracts.

In simple terms, an investment contract happens whenever someone invests money in an enterprise expecting a financial return generated primarily by someone else’s work. A written document isn’t even required for a transaction to be legally classified as a security.

How Texas Defines Fraud & Material Facts

Under Article 581.4(F), “fraud” includes the intentional failure to disclose a material fact.

What counts as a “material fact”? Texas courts follow the federal standard established by the U.S. Supreme Court: a fact is material if there is a substantial likelihood that a reasonable investor would consider it a factor that significantly alters the available information.

Common Acts Leading to Securities Fraud Charges

Securities fraud allegations generally boil down to five common scenarios:

1. Selling unregistered securities.
2. Selling securities through misrepresentation or omitting material facts.
3. Purchasing securities through false statements.
4. Using false or misleading prospectus materials.
5. Selling securities without being a registered salesperson or dealer.

These acts usually align with three primary types of criminal cases:

• Corporate fraud: A company misrepresenting its financial health or inflating its stock value.
• Insider trading: Using non-public, inside information to convince someone to buy or sell stock (regardless of whether the information turns out to be true).
• Third-party misrepresentation: Spreading false information about another company to artificially inflate the stock prices before selling for a profit (“pump and dump”).

How to Defend Against Securities Fraud Charges

To get a securities fraud conviction under Texas law, prosecutors must prove six things beyond a reasonable doubt:

1. You shared an important financial fact.
2. That information was actually false.
3. You knew it was a lie (or made the claim recklessly without caring if it was true).
4. You said it intentionally to get the other person to act.
5. The other person actually believed you and made a decision based on what you said.
6. They lost money or suffered harm as a direct result.

Since the government has to prove everything, we can protect you with several strong defenses, such as: 

• Showing that you acted in good faith with no intention to deceive anyone.
• Proving that upper management actively worked to prevent fraud.
• Confirming that you or your agent had the proper legal license.
• Demonstrating that investors didn’t actually rely on the statement.
• Proving that market drops caused their losses instead.
• Proving that law enforcement unfairly tricked you into taking action.

Responding to Texas State Securities Board Scrutiny

The State Securities Board of Texas (SSB) has broad authority to audit and investigate transactions involving stocks, notes, oil and gas investments, and commercial paper. 

If the Board suspects criminal wrongdoing, it doesn’t stop at administrative penalties; it can refer your case directly to the Texas Attorney General, local District Attorneys, or the U.S. Department of Justice for criminal prosecution.

Penalties for Securities Fraud in Texas

In Texas, the severity of a securities fraud penalty depends on the dollar amount involved. All charge levels carry a potential fine of up to $10,000, along with substantial prison time:

• Third-degree felony ($10,000 or less): Punishable by 2 to 10 years in state prison.
• Second-degree felony ($10,000 to $99,999): Punishable by 2 to 20 years in state prison.
• First-degree felony ($100,000 or more): Punishable by 5 to 99 years, or life imprisonment.

Facing a Securities Fraud Investigation? Protect Your Rights Immediately

Protecting your future, your reputation, and your financial security starts with the right legal team. Financial investigations often build quietly behind the scenes, meaning prosecutors may already be drafting an indictment before you realize you’re under scrutiny. 

Led by John T. Floyd, a board-certified defense attorney with three decades of trial experience handling intricate securities fraud cases, our legal team intervenes immediately to deal with federal agents, scrutinize the prosecution’s evidence, and protect everything you’ve built.

Don’t wait for charges to be filed, contact our Houston office today at 713-224-0101, email us at assistant@johntfloyd.com, or visit us at 3730 Kirby Drive, Suite 750, Houston, TX 77098 to schedule a confidential consultation and take immediate action to safeguard your future.

FAQ

This content is for informational purposes only and does not constitute formal legal advice. For advice regarding your specific case, consult directly with our licensed attorneys.