Series 63 practice questionmediumCriminal Penalties—Concurrent Federal and State Actions
If a person is convicted in federal court of securities fraud and also violated the USA, which of the following is TRUE?
- AThe state may also pursue criminal charges under the USA✓ Correct answer
- BDouble jeopardy prevents state prosecution
- COnly federal authorities may take action
- DThe USA does not apply to federal crimes
Explanation
Why A — The state may also pursue criminal charges under the USA
Federal and state prosecutions are permitted for the same acts because they are brought by different sovereigns. Section 409 does not preempt state prosecution.
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