The Spodek Law Group is an elite criminal defense law firm that provides superior service and white glove professionalism, to a unique clientele nationwide. We handle tough cases that require experience, attention to detail, and excellence in order to win. With over 50 years of combined experience, we’ve handled national and international cases.
Service is paramount to results. We treat you like family, so you know what's going on always.
When you hire our criminal attorneys, you work directly with a senior attorney only.
We've been reviewed and rated as a top rated criminal defense law firm.
Our criminal defense law firms is one of the most successful defense law firms in the state of New York. We have a high success rate because we are very pragmatic when it comes to advising our clients on how to proceed – and to make sure their case ends in a positive outcome. Our goal is to help every single client get charges dismissed, or reduced. Because of our work, 100’s of people have been able to avoid criminal charges from being filed against them.
"Spodek Law Group have offered me excellent support and advice thru a very difficult time. I feel I've dealt with someone who truly cares and wants the best outcome for you and yours. I'm extremely grateful for all the help Spodek Law Group has offered me. I can't recommend them..."David Bruce
"Spodek Law Group was incredibly professional and has given me the best advice I could wish for. They had been helpful and empathetic to my stressful situation. Would highly recommend Spodek Law Group to anyone I meet."Rowlin Garcia
"Best service I ever had. Todd is absolutely class personified. You are in the safest hands with spodek. They have their clients interest in mind."Francis Anim
An initial public offering (IPO) occurs when a company sells its stock shares to the public for the first time. A major financial institution or investment bank typically underwrites the IPO, and there a number of requirements that go hand-in-hand with taking a company public.
However, in some cases, before an IPO occurs, a pre-IPO may take place. In a pre-IPO, a limited number of shares are available on special trading platforms for pre-IPOs, or shares of a company stock are available to certain investors. Typically, hedge funds, large private equity funds and other institutional investors purchase shares during the pre-IPO, but in some cases, a pre-IPO is available to a larger group of private investors.
Although taking advantage of pre-IPO offerings can provide a company with a chance to raise funds before the IPO while also giving knowledgeable investors to get in on the ground floor of a company, there is also an opportunity for scams and fraud to happen as well. Regardless of the type of pre-IPO investment scam, schemes or misrepresentations regarding securities sales can lead to significant criminal charges.
The legal team at Spodek Law Group, PC provides legal presentation in both criminal cases as well as SEC civil actions. If you are facing criminal prosecution, legal actions by federal authorities or a tort lawsuit, contact us today. Our pre-IPO investment scam defense lawyers can provide an aggressive approach to help you work through your legal problems. Ready to get started? Contact us today.
Overview of Pre-IPO Scams
By definition, a pre-IPO involves misrepresentation, fraud or a direct intent to mislead investors regarding stock shares sales for a company awaiting its IPO. There a number of ways that pre-IPO scams occur such as:
– The sale of unregistered securities. Companies that want to offer securities or sell shares must either register with the Securities and Exchange Commission or qualify for an exemption. Selling unregistered securities is illegal, but it is one of the most common forms of pre-IPO investment schemes.
– The sale of pre-IPO shares for a company that never goes public or does not exist. Investors are offered the chance to purchase shares of a company expected to go public, but the company may be false and not even exist. The investors’ money is subsequently embezzled.
– The sale of IPO shares without authorization. A defendant may embezzle client money for his own use, selling shares of stock he neither owns nor has the authority to sell. According to the Securities and Exchange Commission, one defendant was convicted after obtaining more than $3.7 million by offering fraudulent pre-IPO stock shares of well-known corporations before the companies IPOs occurred.
How are IPO Scams Different?
Pre-IPO investment fraud and IPO investment fraud differ in that the latter involves attempts to mislead or scam individuals with a company that is making shares available to the public. Both companies going public as well as large financial institutions involved in the underwriting of the IPOs. For instance, investment banks and companies may mislead potential buyers regarding the financial condition of a company.
A company must make certain financial disclosures when it goes public. If the company or bank provides misleading or false information, this type of IPO investment fraud can result in severe penalties for the investment banks underwriting the IPO as well as for CEOS and other high-ranking company officials who signed off on the fraudulent statements.
Penalties for IPO Fraud
In cases where someone intentionally makes false statements regarding the sale of securities, IPO fraud is considered a crime. In addition, if the defendant makes the states via wire communication or postal mail, he or she may face additional federal offenses such as:
– Wire fraud
– Mail fraud
– Securities fraud
IPO investment fraud may also lead to SEC enforcement actions and criminal charges under New York State law, so it is important to act as soon as possible if you have been accused of participating in a pre-IPO or IPO investment scam.
A Pre-IPO Investment Scam Lawyer Can Help
Call the legal team at Spodek Law Group, PC today if you are facing accusations of involvement in connection with a pre-IPO investment scheme. We can review your case and help you to build a solid defense in order to fight against the criminal charges.
Spodek Law Group have offered me excellent support and advice thru a very difficult time. I feel I've dealt with someone who truly cares and wants the best outcome for you and yours. I'm extremely grateful for all the help Spodek Law Group has offered me. I can't recommend them enough.
Spodek Law Group was incredibly professional and has given me the best advice I could wish for. They had been helpful and empathetic to my stressful situation. Would highly recommend Spodek Law Group to anyone I meet.
Best service I ever had. Todd is absolutely class personified. You are in the safest hands with spodek. They have their clients interest in mind.
We provide superior service, excellent results, at a level superior to other criminal defense law firms. Regardless of where your case is, nationwide, we can help you.
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