Are there any special criminal penalties for securities fraud?
Yes, there are special criminal penalties for securities fraud in California. The penalties depend on the severity of the fraudulent activity. Generally, those found guilty of securities fraud can face up to three years in prison. Furthermore, financial penalties and restitution are also common. The California Corporations Code details the specific types of activities that are considered securities fraud. Some of these activities include insider trading, misrepresentation, omissions, misappropriations, and securities market manipulation. Certain activities can also be punishable as a felony. These include activities that involve more than one victim, or when the fraud results in more than $500,000 in damages or losses. In this case, penalties could include up to five years in prison and up to $25,000 in fines. In some cases, an individual who is convicted of securities fraud may be barred from working in the industry or holding certain positions in the future. This can have long-term implications and is meant to prevent individuals from committing fraud again in the future. Overall, securities fraud is a serious crime in California, and those found guilty of it face stringent consequences.
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