Series 63 practice questionhardWillfulness and aiding and abetting
Which of the following is LEAST likely to result in criminal liability for a willful violation under the USA?
- AAn agent knowingly assists a principal in committing securities fraud.
- BAn agent ignores clear evidence of illegal activity and continues to facilitate transactions.
- CAn agent is unaware of a principal's securities violation and processes transactions in good faith.✓ Correct answer
- DAn agent and principal plan and execute a fraudulent offering together.
Explanation
Why C — An agent is unaware of a principal's securities violation and processes transactions in good faith.
Criminal liability for willful violations or aiding and abetting requires knowledge or reckless disregard (409(a)). Innocent, good faith conduct without knowledge does not meet the standard for criminal prosecution.
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