Criminal Penalties

What this video covers

• What "willful" actually means (intent to commit the act, not intent to break the law) and why ignorance of the law does not negate willfulness
• The maximum criminal penalties upon conviction: $5,000 fine, 3 years imprisonment, or both
• When the no-knowledge defense blocks imprisonment (violations of rules or orders only, never violations of core USA provisions)
• The additional mental state required for false-filing criminal penalties: actual knowledge the statement was false or misleading in a material respect
• The Administrator's limited role in criminal enforcement (investigate and refer evidence to the attorney general or district attorney, but cannot prosecute)
• Why the USA does not replace other criminal statutes, allowing dual prosecution under securities and general criminal fraud laws
• The bracketed, optional 5-year criminal filing period in the Model Act versus the fixed civil statute of limitations (3 years from sale or 2 years from discovery, whichever comes first)