California Richard Weed will face the justice system in his court case.

California Lawyer Richard Weed Free During Appeal

California lawyer Richard Weed was found guilty of operating a pump-and-dump and unregistered securities scheme in Boston, but was allowed to remain out of jail while he appeals his conviction to the First Circuit.

Weed plans to claim that under federal law, the securities he was selling did not need to be registered at all, which he advised in opinion letters at the time. He is also claiming that because the majority of his trial focused on the sale of unregistered securities, his “pump and dump” conviction should also be overturned because his whole case was infected.

A “pump and dump” scheme involves artificially inflating the price of a stock through the release of false positive statements to drive prices up, then allowing the shareholders who were in on the scheme to flood the market with their shares, turning a large profit while driving the price back down for unwitting investors and causing significant losses.

The district judge did not find much merit in Weed’s arguments, but allowed him to remain free given the “novel” nature of his arguments before the court. Weed is claiming that an exemption to registering securities exchanged “by the issuer with its existing security holders exclusively where no commission or other remuneration is paid or given directly or indirectly for soliciting such exchange” applies in this case.

California lawyer Richard Weed was convicted in May of securities fraud and wire fraud that allowed his co-conspirators to sell off shares of ticket broker CitySide Tickets, Inc. and other companies that were essentially worthless. He will remain free pending his appeal to the First Circuit.

Call a Los Angeles Securities Fraud Attorney Today

If you invested in CitySide Tickets, Inc. or with California lawyer Richard Weed, or believe you may have been the victim of a pump and dump scheme, you may have certain legal rights that require your immediate attention.

Contact an experienced Los Angeles securities fraud attorney today for a consultation to discuss your rights and options.