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← Series 63: Remedies & Administrative Provisions
Series 63 practice questionmediumCriminal Penalties — Statute of Limitations

In a remedial practice session, the fact pattern is framed this way. Read it as a Uniform Securities Act issue rather than a federal-law issue. Under the Uniform Securities Act, the statute of limitations for criminal prosecution of a willful violation is:

  1. A1 year from the date of the violation
  2. B5 years from the date of the violation✓ Correct answer
  3. C3 years from the date of the violation
  4. DThere is no statute of limitations for securities crimes
Explanation

Why B — 5 years from the date of the violation

Under USA Section 409(b), a criminal prosecution must be commenced within 5 years after the alleged violation. This is longer than the civil statute of limitations (3 years from sale / 2 years from discovery) because criminal cases often involve more complex investigations. The governing USA principle is unchanged even though the framing is different.

Turn it into reps

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