It is legal to use aggressive sales tactics to convince investors to purchase a stock. However, doing so often attracts negative attention and as a result, the phrase “boiler room” has come to be used for operations in which sellers use aggressive sales tactics or cold-calling on potential buyers. In some cases, those who are running or working in these operations may face accusations of boiler room fraud or investment fraud by state and federal authorities.
If you have been accused of participating in a boiler room scheme, you may be able to avoid conviction through a strong defense, counterarguments and by undermining evidence. In some instances, an experienced criminal defense lawyer may be able to have charges dropped or be able to negotiate a plea deal or immunity deal.
Here at Raiser & Kenniff, PC, we have a history of helping defendants like you who have been accused of boiler room scams and other types of investment fraud scams. Our legal team excels in providing aggressive, knowledgeable representation in these often-complex cases. If you have been accused of participating in a boiler room scheme and you need legal counsel, contact Raiser & Kenniff, PC today.
What is a Boiler Room Scheme?
Boiler room fraud occurs when a consumer is intentionally tricked into buying a fake investment opportunity. However, simply giving poor investment advice is not boiler room fraud. In order to convict a defendant, the prosecution must prove that there was a reckless disregard for the truth in enticing investors to buy and/or a willful intent to defraud. Boiler room fraud may include the following examples:
– Pre-IPO scams: Potential investors are told they can buy into an IPO, but they are sold shares of an existing company without authorization, are sold unregistered securities or are sold shares in a company that does not actually exist.
– Microcap fraud: The schemers choose a penny stock and use aggressive sales tactics to artificially inflate its value. After they sell the stock at a profit, they stop pushing the stock, and the price ultimately plummets.
– Ponzi schemes: Investors are enticed to purchase investments in which profits are generated from new investors. In other words, older investors are paid with funds from new investors.
Boiler Room Fraud Penalties
Penalties for a boiler room fraud scam will depend on the amount of money stolen, the defendant’s level of involvement in the scheme, how the operation was structured and a number of other factors.
It is important to understand that defendants may face charges specific to investment fraud as well as other offenses such as mail fraud and wire fraud — each of which carries a maximum of 20 to 30 years imprisonment sentence, depending on whether a financial institution was defrauded in the scam.
Defendants cannot pick and choose whether they face federal or state charges. The type of charges will depend on the type of crime, the amount of money obtained and other factors. Once they have been charged, they may find their assets are subject to criminal or civil forfeiture, their accounts are frozen and they now must pay restitution and face civil lawsuits.
A NYC Criminal Defense Lawyer Can Help Defend You Against Accusations of Boiler Room Fraud
The legal team of Raiser & Kenniff, PC knows how frightening it can be to find yourself facing charges for involvement in a boiler room scheme, especially if you did not know that the products you were selling were illegitimate.
Our NYC criminal defense lawyers aggressively fight to protect the rights of our clients who have been accused of participating in boiler room scams, regardless of their alleged role in the conspiracy. We have the experience and knowledge necessary to raise defenses, undermine a prosecutor’s case or negotiate a plea deal or immunity agreement in an attempt to avoid or reduce the consequences of your alleged criminal actions.
If you would like more information about our legal team can be of assistance, please contact our office today. Time is of the essence, and it is important to seek representation as soon as possible. Our professional NYC criminal defense attorneys will help to answer your questions and walk you through the legal process as we work to protect your rights.