What are the penalties for securities fraud?
The penalties for securities fraud in Washington depend on the severity of the offense. Violations of the state’s securities fraud laws can carry both civil and criminal charges. In civil cases, securities fraud can lead to a monetary penalty. This might include the return of any profits made as a result of the fraud, plus fines and other costs. The defendant may be ordered to pay interest on any money owed. In criminal cases, the penalties can be much harsher. A person convicted of securities fraud may face a fine of up to $10,000, up to five years in prison, or both. Depending on the severity of the offense, a judge may impose additional punishments such as restitution or the prohibition from engaging in any securities-related activities. The penalties for securities fraud can also be more severe if a person is found to have acted in a professional capacity, such as a broker or investment adviser. The court may order them to be barred from the securities industry in addition to any other penalties. Engaging in securities fraud is not only a violation of the law, but also a serious breach of people’s trust. If convicted, a person will face not only legal consequences but also the potential long-term damage to their reputation.
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