How is the SEC empowered to investigate and prosecute securities fraud cases?

The Securities and Exchange Commission (SEC) is the federal agency responsible for overseeing securities laws in the United States. In Utah, the SEC is empowered to enforce investor protection laws, investigate and prosecute securities fraud cases. The SEC has the authority to investigate possible securities fraud and take action against individuals or companies that violate securities laws. They can issue cease and desist orders, civil penalties, and charges against those who are found to be in violation of the securities laws. They can also refer matters to the Department of Justice for criminal prosecution. The SEC can investigate violations of the Securities Exchange Act, the Securities Act of 1933, the Investment Company Act of 1940, and the Investment Advisers Act of 1940. When the SEC identifies an unlawful activity, they can file civil enforcement actions in federal court, impose civil penalties, or issue cease and desist orders. They can also bar individuals or firms from any further participation in the securities markets. The SEC also has the authority to investigate insider trading activities and may issue subpoenas if they believe a violation has occurred. If the SEC finds that any individual or firm has committed securities fraud, they may bring a civil action to gain disgorgement of ill-gotten gains, and/or impose civil penalties and cease and desist orders. In serious cases, the SEC can refer the matter to the Department of Justice for criminal prosecution. This means that individuals found guilty may face both civil and criminal penalties.

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How is the SEC empowered to investigate and prosecute securities fraud cases?

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