Other Penalties and Liabilities

What this video covers

• The civil recovery formula under rescission: consideration paid plus interest, costs, and reasonable attorney's fees minus income received, and why damages apply when the buyer no longer owns the security
• Who shares joint and several liability with the primary violator, including controlling persons, partners, officers, directors, and employees or broker-dealers who materially aided the conduct
• The civil statute of limitations: two years from discovery versus three years from sale, with the three-year deadline as the absolute cutoff
• How a timely written rescission offer works, what it includes and excludes, and why silence within 30 days forfeits the investor's right to sue
• The purpose and irrevocable nature of consent to service of process, and why the state administrator can receive legal papers on a registrant's behalf
• The 5-5-3 criminal penalty memory aid: five years to bring charges, $5,000 maximum fine, three years maximum imprisonment, and the definition of willful violation
• The three parallel enforcement tracks (administrative, civil, and criminal) and why the administrator refers criminal cases rather than prosecuting them