Criminal Liability Under 1933 Act - Explained
Criminal Provisions of the Securities Laws
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What is the potential criminal liability for violations of 33 Act?
Section 24 of the 33 Act allows the Department of Justice (DOJ) to bring a criminal action against anyone who knowingly and willfully violates the 33 Act. This normally only arises in situations where an issuer commits fraud in the sale of securities. The SEC cannot bring a criminal action itself, but it regularly works in hand with the DOJ to substantiate claims of securities fraud.
Note: Conviction under this provision allows for up to a $10,000 fine and up to 5 years in prison.
Next Article: Securities Exchange Act of 1934 Back to: SECURITIES LAW
How do you feel about this consumer fraud statute? Why do you think the DOJ, rather than the SEC, is charged with pursuing criminal charges in securities actions under Section 24?
- Securities Law (Intro)
- What are Securities Laws?
- What is a Security?
- What qualifies as an Investment contract?
- What are the primary federal securities laws?
- What are the regulatory goals of security laws?
- What is the Securities and Exchange Commission?
- What is an Initial Public Offering?
- What is a Direct Public Offering?
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- Securities Act of 1933
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- Who are the parties regulated in an offer to sell securities?
- What are the primary disclosure documents required in an offer to sell securities?
- Forward Looking
- Red Herring Prospectus (Securities) Definition
- Registration of Securities
- What is an issuer allowed to do at each stage of the registration process?
- How are issuers classified for purposes of the registration and offering process?
- What is an issuer allowed to do during the Pre-filing Period?
- What are the limitations on the issuer during the Post-filing, Waiting Period?
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- Registration Exemptions Securities Act of 1933
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- Section 4(a)(5)?
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- Rule 144a
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- What is civil liability under Section 12 of the 33 Act?
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- What is potential criminal liability under the 33 Act?
- The Security Exchange Act of 1934
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- What disclosures are required of reporting companies under the 34 Act?
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