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?
- AOnly State Y
- BOnly State Z
- CBoth State Y and State Z✓ Correct answer
- DNeither state
Explanation
Why C — Both 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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