Theft often takes on the form of one person stealing from another in media, but the amounts stolen in those situations pale in comparison to the kinds of gains Texas executives make with pre-arranged insider trading.
This form of white-collar crime may result in hundreds of thousands or even millions of dollars siphoned from companies and customers engaging with the market fairly. The Department of Justice issued a press released detailing a natural gas trader admitting to his role in a commodities insider trading scheme.
The charge of conspiracy
A 51-year-old trader from Katy, Texas confessed to pre-arranged trades that generated over $950,000 in illicit proceeds and that these net profits went to himself and others. This organized group agreed to falsely document income on IRS forms in order to conceal their scheme.
The Southern District of Texas scheduled his sentencing on April 26, 2021, for one count of conspiracy to commit commodities fraud and wire fraud.
The investigation is ongoing and the report did not specify if the FBI was charging any other individuals.
The price of conspiracy
These charges fall under federal penalties, given the investigation. Commodities fraud has a maximum sentence of 25 years imprisonment and $250,000 in fines. Wire fraud includes up to 20 years and restitution costs. Given the trader’s confession and that the first charge is a conspiracy to commit, his sentence may or may not be the maximum.
Though the trader in question confessed and sentencing is imminent in this particular case, anyone else under investigation by the FBI does not lose their rights during the said investigation. A defense against alleged white-collar crimes may be exceedingly complicated. Mounting a defense requires a depth of knowledge in a variety of subjects.