What are the differences between criminal and civil securities fraud cases?

The difference between criminal and civil securities fraud cases is based on the type of penalty or punishment someone faces for the illegal act. In a criminal securities fraud case, the accused can face penalties such as jail time, fines, and community service. These types of cases are typically handled by law enforcement and prosecutors, and defendants are usually required to appear before a jury. In contrast, a civil securities fraud case is handled by regulators like the SEC who have the authority to impose fines and/or issue cease and desist orders. However, civil cases do not involve jail time or community service and are typically settled out of court. In North Carolina, criminal securities fraud is regulated by various State and Federal statutes. The most common type of criminal securities fraud is insider trading, which is when an individual takes advantage of their access to non-public information to make a financial gain at the expense of shareholders. Insider trading is a felony in North Carolina and punishable by up to 10 years in prison, a fine of up to $2 million or both. On the other hand, civil securities fraud is governed by the North Carolina Securities Act, which is an expansive law that covers a variety of topics like financial disclosure and anti-fraud measures. The purpose of the law is to protect investors and ensure a fair market system. Civil securities fraud cases can result in hefty fines and other penalties such as the suspension or revocation of an individual’s license or registration. In summary, there are significant differences between criminal and civil securities fraud cases in North Carolina. While criminal cases involve jail time, fines, and other penalties, civil cases rarely result in incarceration and are usually settled out of court.

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