Series 63 practice questionhardCriminal Penalties—Federal vs. State Penalties
An individual is prosecuted in both federal and state court for the same willful securities violation under the USA and federal law. Which is MOST accurate?
- AOnly the more severe penalty may be imposed
- BThe individual may be penalized by both federal and state courts✓ Correct answer
- CFederal law preempts state law, so only federal penalties apply
- DThe individual cannot be tried in both courts for the same conduct
Explanation
Why B — The individual may be penalized by both federal and state courts
Federal and state prosecutions may both proceed for the same misconduct because they are separate sovereigns. Double jeopardy does not prevent this.
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