Series 79 practice questionmediumSEC Enforcement Actions
Which of the following is a potential civil penalty the SEC may impose on individuals violating securities laws?
- AImprisonment for up to 10 years
- BDisgorgement of ill-gotten gains✓ Correct answer
- CRevocation of state securities licenses
- DA requirement to file quarterly reports
Explanation
Why B — Disgorgement of ill-gotten gains
Disgorgement forces violators to return profits made from unlawful acts, a key SEC civil remedy. Criminal penalties like imprisonment are outside the SEC’s civil enforcement powers.
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