What are the common defenses used in securities fraud cases?

In securities fraud cases, defendants may often use one of three common defenses: lack of knowledge, innocence by reason of entrapment, or good faith. Lack of knowledge is a defense that asserts that the defendant had no knowledge that the fraudulent securities trade or transactions were taking place. This defense argues that the defendant was unaware that the securities were fraudulent and did not willingly violate the law. Innocence by reason of entrapment is a defense that focuses on the conduct of the police and government officials. This defense asserts that a law enforcement officer induced an innocent person to commit a crime or influenced the defendant to commit a crime that they would not have otherwise committed. Good faith is a defense that asserts that the defendant acted without any intent to defraud and had no knowledge of any wrong-doing. This seeks to demonstrate that the defendant believed in the validity of the securities transaction and did not intend to commit fraud. The success of these defense strategies will depend on the facts of the case and the applicable law. A qualified securities fraud attorney can analyze the facts of the case and advise the defendant on how to best approach their defense. In addition, the attorney can help to review the applicable law to determine the most effective legal strategy.

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What are the common defenses used in securities fraud cases?

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