Charged Under 15 U.S.C. 78j(b) What Happens Next

A federal securities charge arrives in one of two ways. Some defendants are arrested, often early in the morning and at home. Others receive a summons directing them to appear, which is common where counsel has already been in contact with the government and there is no concern about flight. Either way the sequence that follows is fixed, and knowing it removes some of the fear that makes people act against their own interests in the first hours. This page describes what happens after a charge under 15 U.S.C. § 78j(b) is filed, from the first appearance through resolution. It states no penalty figure, no monetary threshold, and no limitations period for this provision, because the firm publishes such numbers only from verified sources. To discuss a pending charge, call (888) 437-7747.

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The First Appearance and Pretrial Release

The first court appearance happens promptly. The defendant is advised of the charge and of the right to counsel, and the question of release is addressed. In securities cases release is usual, because the statutory factors focus on risk of flight and danger to the community, and a defendant with employment, community ties, and no history of violence rarely presents either. Conditions can still be significant: surrender of a passport, travel limits, restrictions on securities transactions, restrictions on contact with potential witnesses, and reporting obligations. Those conditions are negotiable, and terms accepted casually at the first appearance are harder to change later. This is also the point at which anything said to agents, at home or in a car, becomes part of the record, which is why the answer to every question before counsel arrives is that the person would like to speak with a lawyer.

Arraignment, Discovery, and the Schedule

At arraignment the defendant enters a plea, which at this stage is not guilty in essentially every case, and the court sets a schedule. Federal law requires that trial begin within a defined period subject to exclusions, and the Eastern District of Virginia holds to a fast schedule in practice. That speed cuts both ways. It limits how long a charge hangs over a person, and it compresses the time available to work through discovery that in securities cases is large: trading records, communications collected from providers and employers, records produced by the company, and the material generated by any parallel civil investigation. Counsel should be pressing for production early and identifying, from the first week, which categories of material the government has not yet produced.

Pretrial Motions

Motions practice is where most securities cases are actually shaped. Common motions seek particulars about the theory being charged, dismissal where the indictment fails to allege an element, suppression where digital evidence was gathered beyond the scope of its authorization, exclusion of statements taken without warning or through an internal investigation conducted at the government’s request, and rulings on opinion testimony about market movement and loss. Each motion has a second purpose beyond the relief it seeks: it forces the government to commit to a position in writing. A theory pinned down before trial is far easier to attack than one that shifts as the evidence comes in.

How the Case Is Resolved

Most federal cases end in a negotiated resolution, and securities cases are no exception. Negotiation covers more than whether to plead. It covers which counts, how gain or loss will be calculated, whether particular Guidelines adjustments will be contested, forfeiture, restitution, and how the criminal disposition interacts with the parallel civil matter. Those terms often affect the sentence more than the plea itself does. Where the elements genuinely fail, trial is the right answer, and a case built on documents can be tried effectively because the record is fixed and does not depend on how a witness performs. The decision belongs to the client, made once the discovery is understood rather than in the first anxious week.

Frequently Asked Questions

Will I be detained after a securities charge?

Usually not. Release is the norm in non-violent financial cases, and the court focuses on flight risk and danger to the community. What matters is preparation: a proposed package of conditions, verified employment and residence, and a plan for a passport. Conditions restricting trading and contact with former colleagues are common and should be negotiated rather than accepted without thought.

Should I resign or take leave from my job?

Do not decide alone. Employment consequences interact with indemnification, with advancement of legal fees, with any obligation the employer has to report, and sometimes with a cooperation posture. A resignation offered to make a problem go away can forfeit rights that matter later. This is one of the first questions to put to counsel, not one to settle over a weekend.

Can charges still be dismissed after an indictment?

It happens, though less often than people hope. Dismissal follows from a legal defect in the charge, from suppression that removes the evidence the case depends on, or from the government reassessing a theory after the defense demonstrates that an element cannot be proved. A well-supported submission to the prosecutor can also narrow the case even where it does not end it.

What happens to the parallel civil investigation once I am charged?

It does not disappear. The civil case may be paused while the criminal matter proceeds, but a pause has to be requested and is decided case by case. Deadlines and testimony demands in the civil matter can force choices that damage the criminal defense, so both tracks need to be managed by counsel who is watching them together.

How long does a federal securities case take?

It varies with the size of the discovery, the number of defendants, and the motions filed, and this district moves faster than most. A realistic estimate can only be given once counsel has seen the charge and the volume of material. What can be said is that the early weeks carry more leverage than any later stage, because that is when the schedule and the scope of discovery are set.

Do I need a lawyer if I intend to plead guilty?

Yes, and arguably more than a person going to trial. The terms of a plea determine the Guidelines calculation, the gain or loss figure, forfeiture, restitution, and the treatment of the civil matter. Those terms are negotiable, and a defendant without counsel accepts the government’s version of all of them.

Working With Law Offices Of SRIS, P.C.

The first weeks after a securities charge decide more than most defendants realize, because that is when release conditions, the discovery schedule, and the government’s theory all get fixed. Law Offices Of SRIS, P.C. defends federal securities matters from the first appearance through resolution and manages the parallel civil proceeding alongside the criminal case.

Mr. Sris, Owner and Founder of Law Offices Of SRIS, P.C., is a former prosecutor and is admitted in Virginia, Maryland, the District of Columbia, New Jersey, and New York. The firm has been practicing since 1997. Mr. Sris and the firm’s Of Counsel attorneys handle criminal defense matters across those jurisdictions, which matters in federal practice because a single investigation frequently reaches conduct, witnesses, and records in more than one state. Mr. Sris brings a background in accounting and information systems from George Mason University, applied to complex financial and technology-related cases.

The firm serves Northern Virginia from 1655 Fort Myer Dr, Suite 700, Room 719, Arlington, VA 22209 and central Virginia from 7400 Beaufont Springs Drive, Suite 300, Room 395, Richmond, VA 23225. By appointment. Call (888) 437-7747 to schedule. Request a consultation. Reach our location at (888) 437-7747.

This page provides general information about federal securities charges under 15 U.S.C. § 78j(b) and does not create an attorney-client relationship. Case results depend on a variety of factors unique to each case. Results may vary.

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Being charged is one stage of the case. Our page on securities fraud insider trading charges sets out the offence from start to finish.