Series 79 practice questionmediumSEC Enforcement Actions
If the SEC finds that a registered representative has violated antifraud provisions, which of the following is a discretionary civil remedy the SEC may seek?
- ACriminal prosecution
- BSuspension without a hearing
- CImmediate asset forfeiture to the U.S. Treasury
- DDisgorgement of ill-gotten gains plus monetary penalties✓ Correct answer
Explanation
Why D — Disgorgement of ill-gotten gains plus monetary penalties
Disgorgement and monetary penalties are typical SEC civil remedies for securities violations. Criminal prosecution is handled by the DOJ, and the other options misstate SEC authority.
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