What is a Securities Exchange Act of 1934 violation?

The Securities Exchange Act of 1934 is a federal law that is designed to protect investors by requiring that all activities regarding the buying and selling of securities, such as stocks and bonds, be conducted fairly and openly. A violation of the Securities Exchange Act of 1934 occurs when a person acts dishonestly or unethically in the buying and selling of securities. Examples of such activities include insider trading, stock manipulation, and sale of unregistered securities. These activities can result in substantial financial penalties, criminal prosecution, and prison sentences. In Virginia, violations of the Securities Exchange Act of 1934 are prosecuted by the Office of the Attorney General and the Department of Financial Institutions. When an investigation is opened into a potential violation, the state may bring civil or criminal charges against the violator. In civil cases the fines can be as high as $5 million or three times the amount of profit gained or loss avoided. In criminal cases, the fines can be as high as $10 million plus up to two years in prison. In addition to these penalties, Virginia also has an Investor Protection Act which can provide restitution and protection to victims of investment fraud. This law allows the Attorney General to seek recovery of money or property for investors who have been defrauded. Furthermore, it also gives the Attorney General the power to suspend or revoke the license of any broker-dealer or investment adviser who has committed fraud or acted unethically in the sale or purchase of securities.

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What is a Securities Exchange Act of 1934 violation?

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