A hedge fund can be defined as a private investment fund that is generally made available to a limited set of investors. Given the recent increase in the popularity of hedge funds, there has been a steady rise in the number of lawsuits being filed among funds, their investors, and government regulators. Because many hedge funds are not required to be registered with the Securities and Exchange Commission (SEC), they are often criticized because of their inability to be transparent. As such, allegations of fraud have become commonplace in the world of hedge funds.
Hedge funds are frequently seen as uncertain investment vehicles that can generate enormously high rates of return. A few of the more common investment practices that are used by hedge fund managers include short-selling, utilizing leverage, and derivative contracts. Since the laws surrounding investment companies and investments in general can be pretty tedious and involved, you may want to seek the services of a qualified San Francisco white collar criminal defense attorney to assist you with your case if you have been charged with hedge fund fraud.
For instance, a well-informed San Francisco white collar criminal defense attorney will know that short-selling is generally not a crime. However, if short-sellers try to force the share price of a particular stock down by, for example, starting false rumors or taking action based on non-public information, that activity then becomes criminal. Furthermore, many of the charges with regard to hedge fund violations tend to be subjective. For example, investors who have suffered a loss based on valid market conditions can still choose to file lawsuits alleging impropriety.
Thus, it is imperative that you have a skilled attorney to help mount an iron-clad defense on your behalf. If you need a San Francisco white collar criminal defense attorney, call Chris Morales for a free consultation.
