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Series 63: Remedies & Administrative Provisions
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?

  1. AThe Administrator files criminal charges directly
  2. BThe Administrator refers evidence to the state attorney general or appropriate prosecutor✓ Correct answer
  3. CThe Administrator imposes fines and imprisonment
  4. DThe Administrator must first hold an administrative hearing
Explanation

Why BThe 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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