Series 63 practice questionhardCriminal Penalties—Administrator's Referral Process
An Administrator uncovers evidence of a willful securities law violation. Which of the following is the appropriate next step for criminal prosecution under the USA?
- AThe Administrator files criminal charges directly
- BThe Administrator refers evidence to the state attorney general or appropriate prosecutor✓ Correct answer
- CThe Administrator imposes fines and imprisonment
- DThe Administrator must first hold an administrative hearing
Explanation
Why B — The Administrator refers evidence to the state attorney general or appropriate prosecutor
The Administrator investigates, but criminal charges must be brought by a prosecutor (Section 409). The Administrator cannot impose criminal penalties directly.
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