Series 63 practice questioneasyCriminal Penalties—Applicability
If an agent willfully violates the anti-fraud provisions of the USA, which of the following is TRUE?
- AThe agent may face criminal prosecution and civil liability✓ Correct answer
- BOnly civil liability applies
- COnly administrative action is possible
- DThe agent is protected from prosecution if registered
Explanation
Why A — The agent may face criminal prosecution and civil liability
Willful violation, especially of anti-fraud rules, can trigger both criminal and civil penalties under Section 409. Registration does not shield from prosecution.
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