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

Securities fraud law in Washington helps to protect investors from being taken advantage of. This law addresses both civil and criminal cases of securities fraud. The difference between a civil and criminal securities fraud case is the type of action taken and the punishments that can be given. Civil securities fraud is a case in which the government takes legal action against an individual who has committed securities fraud. Civil securities fraud is usually an administrative action taken by the state or federal government. The goal of civil securities fraud is to recover funds that have been lost due to fraudulent activity. A civil case can also be brought by an individual or group, such as shareholders of a company, who has been harmed financially by securities fraud. The punishment for civil securities fraud can include restitution, disgorgement of unlawful profits, or other civil remedies, such as a court order to stop a certain individual or entity from engaging in similar activities in the future. Criminal securities fraud is a criminal case that is handled by a prosecutor and a court. In this type of case, the prosecutor must prove that the accused individual had the intention to commit securities fraud. Criminal securities fraud carries harsher penalties than civil securities fraud. Punishments can include jail time, fines, and other penalties. In summary, civil and criminal cases of securities fraud are both addressed by securities fraud law in Washington. The difference between the two is the type of action taken and the punishments that can be given. Civil securities fraud is an administrative action taken by the government or individuals to recoup lost funds, while criminal securities fraud involves harsher penalties.

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