Series 63 practice questionhardCriminal Penalties—Statute of Limitations Application
A willful violation occurred in 2012 but was not discovered until 2020. Under the USA, can criminal prosecution still be brought in 2021?
- AYes, because the statute of limitations runs from discovery
- BNo, because prosecution must begin within 5 years of the violation✓ Correct answer
- CYes, there is no statute of limitations
- DYes, provided the Administrator approves an extension
Explanation
Why B — No, because prosecution must begin within 5 years of the violation
Section 409 requires criminal actions to commence within 5 years of the violation, regardless of discovery date. Discovery-based limits apply only to civil actions.
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