Fraudulent issue of stock

Nevada Defense Lawyers Explain Fraudulent Issue of Stock

Many people invest in stocks and bonds. Because these are common investments, it is important that buyers have confidence that the assets they are purchasing are real and legitimate assets that are issued by companies with authority.

In some cases, however, stocks or debt instruments are sold or provided without authorization. Because this can undermine confidence in the system, Nevada law makes this unlawful. Defendants can be charged with a serious crime for the fraudulent issuance of stock and those who are facing charges should consult with LV Criminal Defense as soon as possible to get help fighting conviction.

Our Vegas defense team will fight on your behalf to help you get the best outcome possible, which could mean fighting for acquittal or negotiating a plea deal involving reduced penalties. Give us a call today to find out more about your options and to get help from a Las Vegas criminal defense attorney who can help you.

Nevada Laws on Fraudulent Issue of Stock

Fraudulent issue of stock is considered a fraud offense in Nevada, so is found within the fraud and false personification subsection of Chapter 205 of Nevada’s penal code. Chapter 205 details all different types of property crimes.

The statute defining the offense is Nevada Revised Statute section 205.435. According to the relevant statute, any officer, agent, or other person who is working in service of a domestic or foreign joint stock company or corporation could potentially be charged with the fraudulent issue of stock under specific circumstances.

A defendant could be charged with fraudulent issuance of stock if, while working in service of a joint-stock company or corporation, that defendant knowingly and willfully takes certain actions with the intent to defraud.

The actions that could result in charges under N.R.S. 205.435 include selling, pledging, issuing, or causing to be sold, pledged, or issued, any certificate or instrument that purports to be evidence of ownership of a stock share of the company or corporation without being duly authorized to sell, pledge, or issue the certificate or instrument.

If a defendant sells, pledges, issues, or causes to be sold, pledged or issued, any certificate or instrument contrary to the laws of the charter under which the company operates or exists, the defendant can also be convicted of this offense. Selling, pledging, issuing, or causing to be sold, pledged, or issued evidence of stock ownership can also be unlawful under N.R.S. 205.435 if the defendant exceeds his authority in his actions or exceeds his limit imposed by law or corporate rules to create or issue the stock.

Defendants can also be charged for selling, pledging, issuing, or causing to be sold, pledged or issued, any bond or evidence of debt, or any writing that purports to be a conveyance or encumbrance of real or personal property, contracts, or bonds. Again, a defendant can be charged under this statute only if he willfully sold, pledged, issued, or caused to be sold, pledged, or issued, bond, evidence of debt, or conveyances of real property that the defendant did not have the authority to issue, sell or pledge.

Reissuing, selling, pledging, or disposing of surrendered or cancelled certificates or cancelled certificates of evidence of ownership can also result in criminal prosecution under N.R.S. 205.435.

A defendant convicted under this statute for any of these behaviors will be convicted of a Category C felony. Felony offenses are serious and can result in a lengthy period of incarceration. A felony record can also have a major and profound impact on future opportunities.

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