What is the difference between civil and criminal penalties for securities fraud?

Securities fraud laws in Washington aim to protect investors by prosecuting individuals or companies that knowingly or recklessly mislead or deceive investors. In Washington, securities fraud can result in both civil and criminal penalties, depending on the nature of the offense. Civil penalties for securities fraud in Washington may include fines, disgorgement of ill-gotten profits, and injunction relief. Criminal penalties may include fines, restitution, and imprisonment. Civil penalties are often imposed when a company or individual is found to have violated securities fraud laws, but has not acted maliciously or with intent to defraud investors. Civil penalties are designed to put investors back in the same position they were in before the violation occurred, or to prevent a violation from occurring in the future. Criminal penalties are usually imposed when a party is found to have acted maliciously or with the intent to deceive or defraud investors. In Washington, criminal penalties for securities fraud include fines, imprisonment, and restitution. Fines can range from thousands to millions of dollars, depending on the severity of the crime. Restitution is intended to put the victims back in the same financial position they were in prior to the fraud. Finally, individuals found guilty of securities fraud in Washington may be sentenced to up to 20 years in prison. In summary, civil penalties for securities fraud in Washington are designed to provide relief to investors and to prevent violations from occurring in the future. Criminal penalties, on the other hand, are designed to punish individuals who have acted maliciously or with the intent to deceive or defraud investors.

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What is the difference between civil and criminal penalties for securities fraud?

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