What is the difference between a civil and criminal securities fraud case?

The difference between a civil and criminal securities fraud case is the burden of proof. Civil securities fraud cases are typically brought by the victims of a fraud as a means of seeking financial damages. These cases must meet a legal standard of “preponderance of the evidence,” meaning that the plaintiff must prove that it is “more likely than not” that the defendant is guilty. Additionally, the plaintiff may be able to file a class action suit if many people have been affected by the same fraudulent activity. Criminal securities fraud, on the other hand, are offenses that are prosecuted by the government. These cases must meet a much higher standard of proof, known as “beyond a reasonable doubt.” This means that the prosecution must prove that the defendant is guilty with no reasonable doubt. These cases may include jail time for those found guilty. In California, securities fraud, whether civil or criminal, is regulated by the state’s Corporations Code. The California Corporations Code outlines the duties of corporations and securities, as well as the regulatory framework for enforcing these standards. If a company fails to meet these standards, it can face legal action from the state, or from individuals who have suffered financial losses as a result.

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What is the difference between a civil and criminal securities fraud case?

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