Series 79 practice questioneasySEC Enforcement Actions
If the SEC brings a civil action and the defendant neither admits nor denies the allegations, which outcome is possible?
- AThe case is automatically dismissed
- BThe SEC may settle with the defendant on that basis✓ Correct answer
- CThe defendant is barred from future employment
- DThe defendant must pay double damages
Explanation
Why B — The SEC may settle with the defendant on that basis
The SEC often settles cases where defendants neither admit nor deny wrongdoing. The trap is believing admission is a requirement for settlement.
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