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Series 63: Remedies & Administrative Provisions
Series 63 practice questionmediumAdministrator jurisdiction and cooperation

After learning of suspected criminal activity by an agent, the Administrator in State Q issues a cease and desist order and refers the case to the Attorney General. Which of the following statements is TRUE?

  1. AThe Administrator cannot pursue administrative actions once a criminal referral is made.
  2. BThe Attorney General may still choose not to prosecute the criminal case.✓ Correct answer
  3. CThe Administrator is prohibited from seeking civil remedies while criminal charges are pending.
  4. DCriminal prosecution must begin before administrative proceedings can occur.
Explanation

Why BThe Attorney General may still choose not to prosecute the criminal case.

The Attorney General has discretion to prosecute (USA 409(b)), even after referral. Administrative and civil proceedings can proceed in parallel; neither is dependent on criminal prosecution.

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