What are the penalties for securities fraud?

In California, the penalties for securities fraud can vary depending on the severity of the crime. A person found guilty of securities fraud can be sentenced to fines of up to $500,000, and up to 8 years in state prison. In addition, securities fraud convictions may constitute a “strike” on the offender’s record, which can lead to longer prison sentences if the offender is convicted of other crimes. Civil penalties for securities fraud can also be imposed, in the form of Court-ordered restitution, disgorgement, and/or civil penalties. Depending on the severity of the fraud, a defendant may be ordered to pay back all "ill-gotten" profits obtained as a result of the fraud, as well as pay a penalty. The penalty could be up to three times the amount of profit, or up to $5,000 per violation. In addition, offenders convicted of securities fraud may face suspension or revocation of their professional licenses, as well as being barred from serving as a corporate officer or director. Finally, if the offender was part of a company, the company can be fined up to $2 million for each violation. In short, the penalties for securities fraud in California can be severe, ranging from fines to imprisonment.

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