Defense in Insider Trading Offenses
Facing an accusation of insider trading, commonly known as insider trading, represents one of the most complex challenges for a professional or an investor. As an experienced criminal lawyer specializing in financial crimes in Milan, Avv. Marco Bianucci perfectly understands how such an investigation can compromise not only personal freedom but also the professional reputation built over years of career. The Milanese financial context requires an extremely prepared technical defense, capable of navigating both the pitfalls of criminal proceedings and the complex administrative dynamics managed by CONSOB.
The Regulatory Framework: Article 184 of the TUF
The offense of insider trading is governed by Article 184 of the Consolidated Law on Finance (TUF). The provision punishes anyone who, possessing inside information by virtue of their position as a member of the issuer's administrative, management, or supervisory bodies, or through the exercise of employment, carries out transactions on financial instruments using such information. The law aims to protect the integrity of financial markets and the equal access to information for all investors.
It is crucial to understand that illicit conduct is not limited to merely using information for profit (insider trading in the strict sense). The regulation also penalizes so-called tipping, which is the unjustified communication of inside information to third parties, and tuyautage, which consists of recommending or inducing others to carry out transactions based on such information. The penalties provided are severe and include imprisonment and substantial fines, in addition to accessory sanctions that may involve disqualification from public office or profession.
The Dual Sanctioning Track: Criminal and Administrative
A peculiarity of this matter is the presence of the so-called dual sanctioning track. In addition to criminal proceedings, the investigated person is often subject to administrative proceedings initiated by CONSOB. Administrative sanctions, although different in nature from criminal ones, can be equally afflicting from an economic and reputational standpoint. The approach of Avv. Marco Bianucci, a lawyer with expertise in criminal economic law, involves coordinated management of both defenses. It is essential to prevent statements made in administrative proceedings from prejudicing the investigated person's position in criminal proceedings, and vice versa, leveraging recent jurisprudential openings on the principle of ne bis in idem.
The Bianucci Law Firm's Approach
The defense strategy of Bianucci Law Firm is based on a rigorous technical analysis of information flows and contested transactions. As a criminal lawyer in Milan with consolidated experience in the field, Avv. Marco Bianucci collaborates with financial technical consultants to examine the nature of the information: for the offense to be constituted, the information must be precise and, if made public, capable of significantly influencing the price of financial instruments. Often, the defense focuses precisely on contesting the privileged nature of the information or the lack of a causal link between possessing the information and the transaction carried out.
The primary objective is to provide comprehensive protection that shields the client from the preliminary stages of investigations, a crucial moment for defining the scope of the accusation. The firm assists the client during hearings at CONSOB and interrogations before the Judicial Authority, ensuring that every defense right is exercised to the fullest to clarify the investigated person's position and limit damage to their professional image.
Frequently Asked Questions
What exactly is meant by inside information?
Information is defined as inside information when it is precise, has not yet been made public, and concerns, directly or indirectly, one or more issuers of financial instruments. The fundamental characteristic is its price sensitivity: if made public, it could significantly affect the prices of those financial instruments.
What are the penalties for insider trading?
Article 184 of the TUF provides for imprisonment from one to six years and a fine from twenty thousand to three million euros. The judge may increase the fine up to three times or up to ten times the product or profit obtained from the offense if they deem it inadequate, even if applied at the maximum.
Am I punishable even if I only passed on the information without investing?
Yes, communicating inside information to third parties outside the normal exercise of work, profession, or office constitutes an offense. Even if the person communicating the information does not derive direct profit through investments, they are criminally liable for compromising market integrity.
How does a CONSOB investigation affect criminal proceedings?
The two proceedings, administrative and criminal, proceed in parallel but are interconnected. Evidence gathered by CONSOB can be used in criminal proceedings. However, a strategic defense aims to ensure that the determination of facts in one forum does not unfairly prejudice the other, monitoring compliance with defense guarantees in both contexts.
Request a Legal Consultation in Milan
If you are involved in an insider trading investigation or have received a request for information from CONSOB, it is essential to act promptly. Avv. Marco Bianucci, a lawyer specializing in corporate criminal law, is available to analyze your situation and prepare the best defense strategy. Contact the firm at Via Alberto da Giussano 26 in Milan to schedule a confidential appointment.