Longer Prison Terms for Brokers Charged with Investment Fraud

In 2013, brokers charged with investment fraud were sentenced to a 33 percent longer jail sentence than in the previous year, according to the North American Securities Administrators Association (NASAA).

William Beatty, NASAA president and director of the Washington Securities Division, attributes the stiffer punishment to the heinousness nature of the crimes.

Of the 4,882 investigations state regulators conducted last year, 2,184 led to enforcement actions, which resulted in 1,816 years of jail time for criminal defendants.

Last year, the probation time ordered for criminal defendants increased to 679 years, up 96 percent from 2012. Also, criminal defendants in investment fraud cases were sentenced to an average of 5.5 years in 2013 compared with 3.6 years in 2012.

NASAA’s statistics show that state enforcement actions resulted in $616 million returned to investors and $72 million in fines or penalties.

Weeding out bad actors before they have a chance to conduct business with unsuspecting investors is one of the key investor protection roles served by state securities regulators. This is particularly apt since unregistered individuals or firms are the focus of the majority of investor fraud cases.

The team of investment fraud lawyers at Starr Austen & Miller LLP handles cases involving securities arbitration misrepresentation, overconcentration, broker fraud, negligence, broker churning, breach of trust, as well as malpractice.

Source: Investment News