How does a criminal securities fraud case differ from a civil securities fraud case?

Criminal securities fraud cases and civil securities fraud cases are two different types of legal proceedings that involve wrongdoing within the realm of investments or financial transactions. In criminal securities fraud cases, prosecutors present evidence to a court in order to prove that a person or company is guilty beyond a reasonable doubt of criminal wrongdoing. These charges are typically brought forth by a government agency such as the Securities and Exchange Commission (SEC). In Washington, criminal securities fraud is handled by the Attorney General’s Fraud Division. Civil securities fraud cases are generally brought forth by an individual or entity that has been wronged by another party. In these cases, the plaintiff must prove that the accused party is “more likely than not” guilty of fraud. The burden of proof is lower in civil cases compared to criminal cases. The punishment for criminal securities fraud is typically more severe than for civil securities fraud. Criminal securities fraud carries with it the possibility of landing in jail, while civil securities fraud generally results only in financial damages against the wrongdoer. In Washington, criminal securities fraud cases are handled by the Attorney General’s Office and civil securities fraud cases fall under the purview of the Washington State Supreme Court. Ultimately, the differences between criminal and civil securities fraud cases can vary based on jurisdiction.

Related FAQs

What is the difference between "front running" and "reverse mergers" in securities fraud?
What is a 10b-5 claim in securities fraud?
What is a blue sky law and how does it relate to securities fraud?
What is the difference between a civil and criminal securities fraud case?
What is a "pump and dump" or "flipping" scheme in securities fraud?
Are there special laws that protect investors from securities fraud?
What is a Ponzi Scheme in securities fraud?
What is a "market manipulation" scheme in securities fraud?
What is a "front running" scheme in securities fraud?
What are the strategies used to combat securities fraud?

How does a criminal securities fraud case differ from a civil securities fraud case?

Related FAQs

Related Blog Posts