Securities Lawyer Louisiana New Orleans Metairie

securities class action
George S Mentz, JD, MBA - Attorney at Law * LA EDLA

We focus on cases in Class Action Lawsuits and Securities Fraud.

What is a security?

The definition of a security encompasses many things; generally, a security includes stocks, bonds, commodities and other investments.

What is securities fraud?

Securities fraud can be described as deceptive practices in the stock and commodity markets. Generally, securities fraud occurs when investors are enticed to part with their money based on untrue statements. Securities Fraud is illegal.

Examples of securities fraud:

A) Providing false information on a company financial statement.
B) Providing false information on Securities and Exchange Commission (SEC) filings.
C) Lying to the company auditors.
D) Insider trading.
E) Stock manipulation schemes.
F) Broker embezzlements.

Who may be involved in securities fraud?

Securities fraud may be committed by, among others, investors, employees of a brokerage houses, corporate executives or their shareholders, or by other market participants.

What can I do to assist in combating securities fraud?

Securities Fraud destroys our confidence in the securities and investments markets and casts doubt over investments into legitimate companies. Therefore, it is very important to identify and report these crimes. http://sanfrancisco.fbi.gov/securitiesfraud.htm

CORPORATE FRAUD

I. General Overview

As the lead agency investigating Corporate Fraud, the FBI has focused its efforts on cases which involve accounting schemes, self-dealing by corporate executives and obstruction of justice. The majority of Corporate Fraud cases pursued by the FBI involve accounting schemes designed to deceive investors, auditors and analysts about the true financial condition of a corporation. Through the manipulation of financial data, the share price of a corporation remains artificially inflated based on fictitious performance indicators provided to the investing public. In addition to significant financial losses to investors, Corporate Fraud has the potential to cause immeasurable damage to the U.S. economy and investor confidence.

While the number of cases involving the falsification of financial information remains relatively stable, the FBI has recently observed a spike in the number of Corporate Fraud cases that involve the backdating of executive stock options. Stock options are corporate incentives that allow the holder to purchase stock at a fixed "strike" price sometime in the future, regardless of the prevailing market price. Generally, the strike price is the cost of the stock on the date the options were granted. The benefit to the options holder is the difference between the strike price and the later sales price. When stock options are backdated, however, the date of the options is set to a time in the past when the price of the stock was lower than on the date the options were actually issued. Backdating stock options inflates their value to the holder at the expense of regular shareholders. Some corporate executives have also changed their stock option exercise date (the date the option can be converted to stock) to avoid paying income tax. Currently, the FBI is investigating 59 cases involving the manipulation of executive stock options and anticipates that the number of cases will continue to grow.

Corporate Fraud remains the highest priority of the Financial Crimes Section and the FBI is committed to dealing with the significant crime problem. As of the end of Fiscal Year (FY) 2006, 490 Corporate Fraud cases are being pursued by FBI field offices throughout the U.S., 19 of which involve losses to public investors that individually exceed $1 billion.

Corporate Fraud investigations involve the following activities:

(1) Falsification of financial information, including:
(a) False accounting entries
(b) Bogus trades designed to inflate profit or hide losses
(c) False transactions designed to evade regulatory oversight

(2) Self-dealing by corporate insiders, including:
(a) Insider trading
(b) Kickbacks
(c) Backdating of executive stock options
(d) Misuse of corporate property for personal gain
(e) Individual tax violations related to self-dealing

(3) Fraud in connection with an otherwise legitimately-operated mutual or hedge fund:
(a) Late trading
(b) Certain market timing schemes
(c) Falsification of net asset values
(d) Other fraudulent or abusive trading practices by, within, or involving a mutual or hedge fund

(4) Obstruction of justice designed to conceal any of the above-noted types of criminal conduct, particularly when the obstruction impedes the inquiries of the Securities and Exchange Commission (SEC), other regulatory agencies, and/or law enforcement agencies.

The FBI has formed partnerships with numerous agencies to capitalize on their expertise in specific areas such as Securities, Tax, Pensions, Energy, and Commodities. The FBI has placed greater emphasis on investigating allegations of these frauds by working closely with the SEC, National Association of Securities Dealers (NASD) Regulation, Internal Revenue Service (IRS), Department of Labor, Federal Energy Regulatory Commission, Commodity Futures Trading Commission (CFTC) and U.S. Postal Inspection Service (USPIS). As reflected in the statistical accomplishments of the Presidential Corporate Fraud Task Force (founded 2002), which includes the above-mentioned agencies, the cooperative and multi-agency investigative approach has resulted in highly successful prosecutions.

The FBI has also worked with numerous organizations in the private industry to increase public awareness about combating Corporate Fraud, to include: Public Company Accounting Oversight Board, American Institute of Certified Public Accountants and the North American Securities Administrator's Association, Inc. These organizations have been able to provide referrals for expert witnesses and other technical assistance regarding accounting and securities issues. In addition, the Financial Crimes Enforcement Network (FinCEN) and Dunn & Bradstreet have been able to provide significant background information on subject individuals or subject companies in an investigation.

II. Overall Accomplishments

During FY 2006, the FBI investigated 490 Corporate Fraud cases resulting in 171 indictments and 124 convictions of corporate criminals. Numerous cases are pending plea agreements and trials. The following notable statistical accomplishments are reflective in FY 2006 for Corporate Fraud: $1.2 billion in Restitutions, $41.5 million in Recoveries, $14.2 million in Fines, and $62.6 million in Seizures. The chart below is reflective of the number of pending cases from FY 2002 through FY 2006. http://www.fbi.gov/publications/financial/fcs_report2006/financial_crime_2006.htm

Pain And Suffering: Ordinarily, the most "valuable" and "critical" element of your bodily injury claim is the right to compensation for physical pain and mental anguish you have suffered and will endure in the future because of your accident injury or abuse. These general damages are in addition to and may be far more than the amount of your lost earnings and medical expenses.

Loss of your Earnings: You are also entitled to recover the loss of earnings suffered from your injuries. Thus, wages, commissions, bonuses and all other earnings and fringe benefits are recoverable.

Medical and Hospital Expenses: The cost and expense of all reasonable and necessary medical expenses incurred and that are reasonably certain to be incurred in the future because of your injury, are recoverable. These expenses include past (already-incurred) medical expenses and costs and also future medical expenses, which may be the product of the original injury or that result from an increased susceptibility to future injury. All forms of medical care and treatment, whether hospital, medical, therapy, nursing, diagnostic testing, surgery, physical rehabilitation or pain management are included. You can recover the full value of your medical expenses from the responsible party even if your health insurer has paid all or part of your bills. However, be aware that most health insurance contracts have a "subrogation" clause, that gives them the right to be reimbursed for any amounts they have paid you.

Loss of Future Earnings: If your injuries permanently limit your ability to earn, you can recover the value of the reduction in earning capacity with reasonable probability which will occur in the future. These damages compensate you for your lost earning power over the remainder of your working years, and can be even greater than the pain and suffering or general damage awards mentioned above.

Damage To Your Vehicle Or Other Personal Property: You are entitled to be made whole for any damage to your personal property. Where they can repair your vehicle, you are entitled to recover the reasonable cost of restoring the vehicle to its condition before the collision. In addition, you may recover the cost of substitute transportation necessarily incurred while they are repairing your vehicle. If the cost of repair is more than the value of your vehicle (a "total loss"), you are entitled to recover the full value of your vehicle before it was damaged.

Wrongful Death: Damages for "wrongful death" are available for the wife, husband, parent and child of the deceased person. Sometimes, persons related by blood or marriage, who were dependent upon the deceased, may recover. Damages are not limited to economic loss and may include damages for mental anguish, emotional pain and suffering, loss of society, companionship, comfort, protection, marital care, parental care, filial care, attention, advice, counsel, training, guidance or education. Damages are available for the deceased's estate as well.

Disfigurement: If the injury causes scarring or other unsightly marks, you are entitled to recover for the disfigurement and humiliation or embarrassment associated with the disfigurement.

Damage To The Marital Relationship: Serious injuries to one spouse may cause damage to the marital relationship. If this occurs, you are entitled to recover for the loss of society, affection, assistance, conjugal fellowship and loss or impairment of sexual relations that occurs.

Large Jury Verdicts . To Read about some of the largest jury verdicts in the United States and Lousiana, please review our website. read more To make a complaint now, please click here to contact a Louisiana Licensed Attorney.