Criminal Penalties

What this video covers

• Why "willful" is the required element for criminal penalties under the Uniform Securities Act (USA), and why inadvertent violations are not criminal offenses
• How the state administrator gathers evidence but does not prosecute directly, then refers the case to the state attorney general or district attorney
• The 5-5-3 memory aid for USA criminal penalties: $5,000 maximum fine, 5-year statute of limitations, 3 years maximum imprisonment
• The no-knowledge defense: how proving lack of knowledge of a specific rule or order avoids imprisonment but does not eliminate the violation or the fine
• Why federal penalties under the Investment Advisers Act of 1940 are higher than state USA penalties: $10,000 fine and 5 years imprisonment
• How to spot exam questions that bait you into applying federal penalty numbers to state-level USA scenarios