Summary of All Remedies Under the USA

What this video covers

• The four actual USA remedies (administrative, judicial, civil, criminal) and why SIPC is a federal program, not a USA remedy
• What the state Administrator can do alone (investigate, cease and desist orders) versus what requires a court (injunctions, receivers, monetary relief)
• Who initiates each route: Administrator for administrative, Administrator requesting court for judicial, buyer for civil, attorney general or district attorney (AG/DA) for criminal
• The 5-3 memory aid for criminal penalties: $5,000 maximum fine and 3 years maximum imprisonment for willful violations
• Civil statute of limitations: 3 years from sale or 2 years from discovery, whichever comes first, plus the 30-day rescission offer response period
• SIPC protection limits: $500,000 total per customer per capacity with a $250,000 cash sublimit inside that total
• Burden of proof distinctions: seller bears burden in civil fraud cases, strict liability with no defense for registration violations, and state bears burden in criminal cases
• Available defenses: imprisonment defense (no knowledge of rule or order, fine still applies) and control person defense (no knowledge plus reasonable supervision)