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Series 63: Remedies & Administrative Provisions
Series 63 practice questioneasyCriminal Penalties—Willful Violations

Which of the following must be present for criminal penalties to be imposed under the USA?

  1. ANegligent violation of the Act
  2. BWillful violation of the Act✓ Correct answer
  3. CAccidental violation by an agent
  4. DAdministrative oversight
Explanation

Why BWillful violation of the Act

Criminal penalties under USA Section 409 require a willful violation. Negligence, accident, or oversight alone are not sufficient for criminal prosecution.

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