From 1933 until 2002, business securities were regulated by the Securities Act of 1933. Though the act largely encouraged businesses to publish a prospectus regarding all publicly-traded stocks they issued, the Act, for the most part, did not do a great job of holding CEOs accountable for corporate fraud. That is why in 2002, Senator Paul Sarbanes and Congressman Michael Oxley created the Sarbanes-Oxley Act.

As a result of the act, the Public Company Accounting Oversight Board was created to closely monitor the accounting industry, banning loans to executives and holds those CEOs directly responsible for any errors, miscalculations, or falsehoods in accounting audits. The act required a nationwide auditing standard, something that hadn’t been done before. To make matters even more challenging for CEOs, the Act increased whistleblower protections, as now, employees can report instances of corporate fraud, and actually testify against their employers without running the risk of getting fired.

What happens if I violate the Sarbanes-Oxley Act?

The truth is, though the act does help clear up some corporate corruption, the act is also extremely harsh on CEOs, and if you violate the act, you will most likely face very serious penalties that can jeopardize both your business and your life. Some of the consequences of violating the Sarbanes-Oxley Act are as follows:

• If you are a CEO and are caught certifying a statement of which you know does not comport with all requirements of the law, you may face up to $1,000,000 in fines, as well as up to 10 years in prison.
• If you are a CEO and are caught willfully certifying any statement while knowing that the report does not comport with all requirements of the law, you may face up to $5,000,000 in fines, as well as up to 20 years in prison.

Rather obviously, if you are someone who has been charged with violating the Sarbanes-Oxley Act, or you have been charged with any other type of white-collar crime, you are facing very serious penalties that could change your life forever. Fortunately, our knowledgeable, aggressive Texas criminal defense attorneys are here to fight for your rights. Do not wait another minute–we are here to help you through every step of the legal process going forward.

Contact our experienced Texas firm

We are knowledgeable attorneys who are ready to help preserve your freedom and keep you out of jail. If you or a loved one are facing a criminal charge in the state of Texas, reach out to our firm today. We have been defending individuals in your position for years, and we are ready to do the same for you. If you need a firm who will aggressively fight for your rights, look no further–simply contact Carrol & Hinojosa today.