NRS 205.440: Publishing False Statements To Affect Market Price 

Every minute of every day, people exchange money for products and services. In many ways, commerce is what keeps the modern world moving. For this exchange to function effectively, goods and services must be presented in a trustworthy and ethical manner.

People buy goods and services including stocks, securities, and real estate property based on the reputation of that good or service.

With the invention of the search engine, we are now able to gather much more information on the things we consume including stocks, securities and property.

Most of the time, the information we collect is accurate and reliable, providing valuable insights for making informed decisions about items traded on the open market.

But what happens when the market for a product or service is manipulated by a person or company? This can happen when businesses or a representative of a company uses false or misinformation to affect the price of something or change its standing in the market. 

In cases of stocks, securities, and property the business owner may have made a rash judgment and put out information that they thought was accurate at the time but was later determined not to be correct. 

This may sound confusing, but basically making false statements to change the price is considered a fraud offense that can lead to time in jail depending on the case against you.

What Exactly Does NRS 205.440 Cover?

NRS 205.440 in Nevada refers to “publishing false statements to affect market price.” This means that it is illegal to intentionally use false information with the intent to manipulate the price of a good, security, or commodity in the open market. 

Basically this statute is considered fraud or false advertising. This is considered a crime against property in Nevada.

In order to be charged or convicted of NRS 205.440 making false statements to affect the price of a good, security, or commodity you must have acted with intent to impact the market. 

The prosecution must prove that the individual or company circulated or published false or misleading writings, intelligence, or statements to affect the price of a commodity in the market.

What Are False Statements and Why Are They So Important to NRS 205.440

The key to being charged with making false statements to affect market price is intent. 

The prosecution must prove that you or your company intended to make false or deceptive statements that would affect the price of a commodity. So to be found guilty of NRS 205.440 the prosecution must prove beyond a reasonable doubt that you actually intended to make false statements to change the price of a good or service or security.

But what is considered a false statement? 

A false statement refers to any untrue claim, rumor, or report that has the potential to impact the market price of a good or security. Such actions may constitute a legal violation.

If there was no intent and the false statements were made in error and not intentional, then there should be no charges or conviction for NRS 205.440.

What Are the Defenses Against a Making False Statements Charge Under NRS 205.440

As we mentioned earlier intent is the key to being charged with or convicted of NRS 205.440.

So the main defense against these charges would be that you had no intent. 

If the statements made that affected the market price of a commodity were made either in good faith with no intent to harm, then the charges should be dismissed. 

If the information you released, which influenced market prices, was what you genuinely believed to be accurate at the time, and you had no intent to commit a crime, you should not be charged under NRS 205.440. Your actions were based on your understanding of the facts as they appeared, without any malicious intent.

Intent is a tricky thing for prosecutors to prove. Intent requires knowing what is in someone’s mind at the time a crime is committed. It is up to the prosecution to prove that you actually intended to commit a crime against property. 

A smart defense team like The Defenders will come up with a unique strategy to defend against the charges of making false statements to affect market price.

If you’ve been charged with a crime, no matter the offense, it’s crucial to consult with a lawyer to discuss your case.

Having a strategy to defend against charges can make all the difference in any case that could get you convicted of crime and leave you with a criminal record.

What Are the Penalties for a Conviction Under NRS 205.440?

If you are accused of making false statements for the purpose of impacting market price, you could face severe penalties including criminal charges that could lead to a gross misdemeanor conviction. 

Jail time is a very real possibility if you are convicted of NRS 205.440. A conviction of deceptive statements or market manipulation can also lead to other consequences that most people aren’t always aware of— including the loss of employment and reputation. 

A criminal conviction can create significant challenges, making it more difficult to secure employment or even find housing. These are the often-overlooked consequences that accompany a criminal record.

A gross misdemeanor in Nevada is punishable by:

• A maximum of up to one year in prison 
• A fine of up $2000 
• In some cases, both the fine and jail time are given to the defendant depending on the severity of the case.

How Can Making a False Statement Affect the Price of Something?

Intent is inherently subjective, making it challenging to prove since we can never truly know another person’s thoughts.

What people perceive is also very subjective. 

Consumers tend to believe what is marketed to them about products and services, especially if these statements and information comes from a reputable company. 

For example, if a new drug is placed on the market by a reputable pharmaceutical company and that drug is marketed with all kinds of healing qualities, this new drug will probably have an effect on the stock price of the company.

The stock price could rise substantially with a new miracle drug. If the company knowingly marketed the new drug to possess the ability to do things it can’t do to inflate the value of the company then they can be guilty of NRS 205.440.

What Should I Do if I’m Charged With NRS 205.440?

Facing a criminal charge can be an overwhelming and frightening experience, but ignoring it and hoping for the best is not an option.

If you are facing criminal charges of any kind, including making false statements to affect the market price, you should consider speaking with an experienced defense attorney to come up with a strategy to defend against these charges.

The Defenders law firm has been representing clients against any number of charges for many years. We represent clients facing charges related to false statements, as well as other criminal matters such as DUI, domestic disputes, fraud, and more.

Our team of experienced lawyers specializes in a wide range of criminal law areas, offering expert guidance and representation.

Our team will place you with the right lawyer for your particular case. We offer personalized service so we can concentrate on your case. Unlike public defenders who may have many cases to deal with, our private firm offers personalized service with more resources to defend against your criminal charges. 

If you are facing criminal charges don’t leave your freedom to chance. 

The choices you make today can affect the future of your case and in some cases even your freedom. 

Facing criminal charges? Schedule a consultation with The Defenders to discuss your case and explore how we can help protect your rights.

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