Series 63 practice questionmediumCriminal Penalties—Attempted and Completed Offenses
Which statement correctly describes criminal penalties in the NASAA-updated 1956 Uniform Securities Act?
- AAny negligent violation is punishable by imprisonment
- BThe Administrator personally imposes imprisonment
- CA willful violation may, upon conviction, result in a fine up to $5,000, imprisonment up to three years, or both✓ Correct answer
- DOnly completed investor losses may be prosecuted
Explanation
Why C — A willful violation may, upon conviction, result in a fine up to $5,000, imprisonment up to three years, or both
USA Section 409(a) applies upon conviction for a willful violation and sets the model maximum at a $5,000 fine, three years' imprisonment, or both. The model provision does not state the attempted-violation rule asserted by the former row.
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