Criminal Liability Under 1933 Act - Explained
Criminal Provisions of the Securities Laws
Written by Jason Gordon
Updated at September 25th, 2021
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Table of Contents
What is the potential criminal liability for violations of 33 Act?Discussion QuestionAcademic ResearchWhat is the potential criminal liability for violations of 33 Act?
Section 24 of the 33 Act allows the Department of Justice (DOJ) to bring a criminal action against anyone who knowingly and willfully violates the 33 Act. This normally only arises in situations where an issuer commits fraud in the sale of securities. The SEC cannot bring a criminal action itself, but it regularly works in hand with the DOJ to substantiate claims of securities fraud.
Note: Conviction under this provision allows for up to a $10,000 fine and up to 5 years in prison.
Next Article: Securities Exchange Act of 1934 Back to: SECURITIES LAW
- Liability Under the Securities and Exchange Act of 1933
- What is civil liability under Section 11 of the 33 Act?
- What is civil liability under Section 12 of the 33 Act?
- What are defenses available to charges under Sections 11 and 12?
- What is civil liability under Section 17 of the 33 Act?
- What is potential criminal liability under the 33 Act?
Discussion Question
How do you feel about this consumer fraud statute? Why do you think the DOJ, rather than the SEC, is charged with pursuing criminal charges in securities actions under Section 24?