NASAA Series 63Remedies and Administrative ProvisionsMedium
A prosecutor wants to bring criminal charges against an agent for a securities fraud violation that occurred six years ago. Under the Uniform Securities Act, this prosecution is most likely:
- APermitted, because there is no time limit on criminal prosecutions under the Act
- BBarred, because no indictment or information may be filed more than five years after the alleged violation
- CPermitted only if the agent is still registered in the state
- DBarred, because criminal actions must be filed within one year of the violation
Show answer & explanationAnswer & explanation
Correct answer: B. Barred, because no indictment or information may be filed more than five years after the alleged violation
The Uniform Securities Act generally bars criminal prosecution if no indictment is found, or information filed, within five years after the alleged violation. Since six years have passed, this prosecution would be time-barred.
Why the other options are wrong
- A. The Act does impose a five-year limitations period on criminal prosecutions.
- C. Current registration status is irrelevant to the criminal statute of limitations.
- D. One year is far too short; the actual period is five years.
Criminal Statute of Limitations
Under the Uniform Securities Act, no indictment or information may be filed more than five years after the alleged violation.
- Five-year limit applies to criminal prosecutions
- Separate from the civil liability statute of limitations
- Time runs from the date of the violation, not discovery
Memory trick: Five years to prosecute, or the case evaporates.