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Series 63: Remedies & Administrative Provisions
Series 63 practice questionmediumCriminal Penalties—Jurisdiction

An agent in State Y willfully commits fraud when selling securities to a resident of State Z. Under the USA, which jurisdiction(s) could pursue criminal prosecution?

  1. AOnly State Y
  2. BOnly State Z
  3. CBoth State Y and State Z✓ Correct answer
  4. DNeither state
Explanation

Why CBoth State Y and State Z

Both states where the offer originated (State Y) and where received (State Z) have jurisdiction under Section 414. Either may pursue criminal prosecution for willful violations.

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