Series 63 practice questionmediumLEAST likely: Administrator’s response to out-of-state evidence of fraud
An Administrator in State P receives evidence of a fraudulent securities offering affecting residents in both State P and State Q. Which of the following actions is LEAST likely to be within the Administrator’s immediate powers?
- AIssue a cease and desist order against the party.
- BCoordinate with State Q’s Administrator to share evidence.
- CCommence criminal prosecution in State Q.✓ Correct answer
- DInitiate an investigation into parties operating in both states.
Explanation
Why C — Commence criminal prosecution in State Q.
Administrators cannot directly prosecute criminal cases in other states (C). Issuing orders, coordinating, and investigating (A, B, D) are within their authority.
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