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

The difference between civil and criminal sanctions in securities fraud cases is based on the severity of the offense and the purpose of the punishment. In civil cases, involving securities fraud, the primary purpose is for monetary restitution, making the victim whole again or as close to it as possible. In these cases, a securities fraud victims can sue the wrongdoer in an effort to recover losses or damages. This can include payment of legal fees, compensatory damages, and in some cases even punitive damages. Criminal sanctions, on the other hand, are meant to punish the wrongdoer and serve as a deterrent to potential future wrongdoers. When securities fraud is committed, the U.S. Securities and Exchange Commission (SEC) or the Department of Justice (DOJ) can bring criminal charges, resulting potential fines and/or imprisonment. Fines imposed can reach up to $5 million, while imprisonment can last up to 20 years. In addition to punishment, criminal sanctions also include orders to pay restitution – which may be ordered in addition to or in lieu of a criminal penalty. Companies and individuals may also be barred from participating in certain activities or from participating in the securities industry entirely. In conclusion, civil sanctions are meant to help victims of securities fraud recover any losses, while criminal sanctions are intended to punish and deter future wrongdoers. Both approaches are often used, in order to provide the most comprehensive punishment for securities fraud.

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

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