Series 63 practice questionmediumCriminal penalties and statute of limitations
An agent's willful violation was discovered in 2024, but the illegal act occurred in 2019. The statute of limitations for criminal prosecution under the USA is:
- A3 years from the act or 2 years from discovery, whichever is later.
- B5 years from the act.✓ Correct answer
- C2 years from the discovery of the violation.
- D5 years from the act or 2 years from discovery, whichever is earlier.
Explanation
Why B — 5 years from the act.
Criminal actions must be brought within 5 years of the violation (Section 409(c)). Civil actions may use 'discovery,' but for criminal, it is strictly from the act.
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