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COULD I GET A SUSPENDED SENTENCE FOR CONSPIRACY TO COMMIT SECURITIES FRAUD?

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Securities fraud cases are among the most complex and seriously treated financial crimes, and you are not alone if you are concerned about facing charges for these kinds of cases. This article will explain what conspiracy to commit securities fraud involves, the sentencing options available to courts, and the circumstances under which you might receive a suspended sentence rather than immediate imprisonment.

What is conspiracy to commit securities fraud?

Conspiracy to commit securities fraud involves an agreement between two or more people to commit fraud in relation to securities, investments, or financial markets. The offence combines elements of conspiracy law with securities fraud, making it a particularly serious and complex charge. It is typically prosecuted under the Criminal Justice Act 1987 for conspiracy, combined with fraud offences under the Fraud Act 2006.

Common examples of conspiracy to commit securities fraud include agreements to manipulate share prices through coordinated buying or selling, conspiracies to spread false information about companies to affect their share prices, agreements to operate Ponzi schemes or other fraudulent investment vehicles, conspiracies to engage in insider trading using non-public information, agreements to create false financial statements or reports to mislead investors, and conspiracies to operate unauthorised investment schemes.

The key elements that prosecutors must prove include an agreement between two or more people, intent to commit securities fraud, and some action taken in furtherance of the conspiracy. Importantly, the actual fraud does not need to be completed for the conspiracy charge to succeed, and each conspirator can be held responsible for the actions of other members of the conspiracy.

What are the usual sentences for conspiracy to commit securities fraud?

The maximum sentence for conspiracy to defraud is 10 years imprisonment, though sentences can be higher if the conspiracy involves multiple separate offences or if it is charged alongside other serious crimes.

However, not every conspiracy case results in the maximum sentence. Courts have various sentencing options available, including community orders, suspended sentences, and immediate custody of varying lengths. The sentence imposed will depend on factors such as your role in the conspiracy, the amount of money involved, the sophistication of the operation, the number of victims, and your personal circumstances.

For less serious cases involving smaller amounts, peripheral involvement, or first-time offenders with strong mitigating factors, courts may consider alternatives to immediate custody. However, the serious nature of securities fraud means that suspended sentences are less common than in other types of fraud cases.

What is a suspended sentence and how does it work?

A suspended sentence is a prison sentence that does not take effect immediately. Instead, the sentence is “suspended” for between six months and two years on average. During this time, you remain in the community rather than going to prison, assuming you comply with conditions. If you commit another offence or breach the conditions during the suspension period, you will likely be required to serve the original suspended sentence in addition to any penalty for the new offence.

To address the underlying causes of offending and reduce the likelihood of future crimes, suspended sentences often come with requirements. These can include unpaid work, supervision by probation services, attendance at rehabilitation programmes, or restrictions on your financial or business activities.

Can conspiracy to commit securities fraud result in a suspended sentence?

Conspiracy to commit securities fraud can potentially result in a suspended sentence, but this is relatively uncommon given the serious nature of the offence. Courts consider suspended sentences when they believe the offence is serious enough to warrant a prison sentence, but where immediate custody may not be necessary or proportionate in the specific circumstances.

Factors that might favour a suspended sentence include having a peripheral or minor role in the conspiracy, being a first-time offender with no previous convictions, showing genuine remorse and full cooperation with authorities, having exceptional personal circumstances such as serious illness or family crises, and demonstrating that you are unlikely to reoffend.

Cases involving relatively modest amounts, limited involvement in the planning or execution of the fraud, or where you were acting under pressure or coercion from other conspirators may also be more suitable for suspended sentences. Evidence that you have taken steps to make restitution to victims or assist authorities in recovering losses can also work in your favour.

What factors do courts consider when deciding on a suspended sentence for conspiracy to commit securities fraud?

Courts consider numerous factors when deciding whether to impose a suspended sentence for conspiracy to commit securities fraud. Your role in the conspiracy is crucial, including whether you were a leader, organiser, or peripheral participant, the extent of your involvement in planning and executing the fraud, and your level of responsibility for the overall criminal enterprise.

The financial impact is also a key consideration, including the total amount involved in the conspiracy, the actual losses to victims, the number of people affected, and the broader impact on market confidence and the financial system. Courts will consider victim impact statements and evidence of the time and cost required for victims to recover their losses.

The sophistication and duration of the conspiracy is important, too. Courts will consider the level of planning involved, the use of complex financial instruments or structures, the duration of the criminal activity, and whether the conspiracy involved professional expertise or abuse of positions of trust within the financial sector.

Your personal circumstances play a vital role in sentencing decisions. Factors such as your age, health, previous good character, family responsibilities, and professional background will be considered. Evidence of genuine remorse, full cooperation with authorities, and efforts to make restitution will be viewed favourably.

How serious does the offence have to be for a prison sentence for conspiracy to commit securities fraud?

Given the serious nature of conspiracy to commit securities fraud, most cases will result in immediate prison sentences. The court must be satisfied that the offence is “so serious that neither a fine alone nor a community sentence can be justified” (according to the Sentencing Code), and this threshold is usually met in securities fraud cases.

Examples of cases that might potentially avoid immediate prison include first-time offenders with very peripheral involvement, cases where you were acting under significant coercion or pressure, or where there are truly exceptional personal circumstances such as terminal illness. However, such cases are rare, and the courts generally view securities fraud as requiring immediate custody.

Previous convictions, particularly for financial crimes, make immediate custody almost inevitable. Other cases that almost certainly warrant immediate prison sentences include those involving substantial financial losses, sophisticated criminal operations, professional or organised fraud, leadership roles in the conspiracy, or where you have previous convictions for financial crimes. Securities fraud that involves abuse of positions of trust within the financial sector or that causes significant damage to market confidence will also result in immediate custody.

What can I do to improve my chances of getting a suspended sentence for conspiracy to commit securities fraud?

Given the serious nature of these charges, it is absolutely essential to seek expert legal advice immediately from solicitors with extensive experience in complex financial crime cases. The technical nature of securities law and the severity of potential sentences require specialist knowledge and expertise.

Other things you can do to help your case include:

  • Demonstrate genuine remorse and accept full responsibility for your actions. This means showing complete understanding of the harm caused to victims and the financial system, expressing sincere regret, and being entirely honest about your involvement. Courts can distinguish between genuine remorse and attempts to minimise responsibility.
  • Cooperate fully with authorities and provide all possible assistance with their investigation. This might include providing information about other aspects of the conspiracy, helping to trace assets or recover losses, or assisting with understanding complex financial structures. Such cooperation can be a significant mitigating factor.
  • Make every effort to provide restitution to victims or assist in asset recovery. Even if you cannot repay the full amount, demonstrating a genuine commitment to making amends can be viewed favourably by the court.
  • Provide comprehensive evidence of positive aspects of your life and character, including detailed references from employers, colleagues, family members, and community organisations. Evidence of your professional achievements, charitable work, or other contributions to society can help show that your involvement in the conspiracy was aberrant behaviour.
  • Address any underlying issues that may have contributed to your involvement in the conspiracy. If financial pressures, personal problems, or other factors played a role, seek appropriate help and provide evidence of the steps you are taking to address these issues.

Where to get more help

If you are facing charges for conspiracy to commit securities fraud, turn to the team at Stuart Miller Solicitors. We understand the serious nature of these charges and the sophisticated legal and technical issues involved. Get in touch with us today for a free, confidential consultation to discuss your case and start building your defence.

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