Criminal Penalties
Chapters in this video
- 0:00 The Aaron the agent setup and the willfulness puzzle
- 1:04 Willful act versus intent to violate the law
- 2:33 Maximum penalties: $5,000 fine and 3 years per violation
- 3:30 False filings: the knowledge of material falsity exception
- 4:04 Who prosecutes: Administrator refers, district attorney charges
- 5:31 Preservation of other criminal laws
- 5:58 Civil versus criminal statute of limitations compared
- 6:12 Rapid-fire exam recap
What this video covers
- The mental state required for a criminal violation: "willful" means intentional act, not intent to break the law
- The maximum fine and imprisonment under the Uniform Securities Act (USA): $5,000 and 3 years per violation, stacking multiplicatively
- The "no knowledge of the rule or order" defense: how it blocks imprisonment but not fines
- The heightened standard for false filings: knowledge that the statement was materially false or misleading
- The chain of criminal referral: the Administrator investigates and refers, but only the attorney general or district attorney can prosecute
- The preservation of other criminal laws: how conduct can be prosecuted under both the USA and general criminal statutes
- The criminal statute of limitations: 5 years from violation, longer than the civil deadline
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