©2008

 

Securities enforcement received little attention in past decades. There were relatively few federal security fraud prosecutions in District Courts around the country other than the Eastern and Southern Districts of New York. There were even fewer on the state level. South Carolina was no exception. However, two events after the turn of the century rocked the world of securities enforcement. Corporate failures involving Enron, Qwest and WorldCom on the federal level spurred new legislation and a heightened enforcement of federal security laws. Closer to home, the failures of HomeGold Financial Inc. and the Thaxton Group within South Carolina transformed state securities enforcement. The response of our federal and state elected representatives has been swift and dramatic in an effort to “get tough on securities crimes.” Our elected representatives have provided unprecedented funding along with procedural and substantive tools to encourage criminal and civil securities enforcement.

 

This publication is designed to serve as a ready reference for private practitioners and prosecutors alike who deal with securities enforcement. Securities enforcement is no longer confined to Wall Street but has come crashing down now on Main Street as well.

 

Summary of Contents

 

I. Introduction
II. How an Investigation Begins
III. Federal Prosecutions
IV. State Securities Fraud
V. Defending Securities Fraud Cases
VI. Federal Sentencing Guidelines for Securities Fraud