Asked by Total Sport Productions on Jun 06, 2024
Verified
To avoid a conviction in a criminal prosecution under the securities laws, there must be at least a reasonable doubt that the defendant knew he or she was acting wrongfully.
Criminal Prosecution
The process whereby the state brings charges against an individual or entity for violating criminal law.
Reasonable Doubt
The standard of proof required in criminal cases for a jury or judge to legally find the defendant guilty; doubt based on reason and common sense.
Securities Laws
Securities laws are legislations and regulations designed to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation, governing the creation and trading of securities.
- Assess the impact of noncompliance with securities laws, including potential sanctions and liabilities.
Verified Answer
EG
Efren GarciaJun 12, 2024
Final Answer :
True
Explanation :
In a criminal prosecution under the securities laws, the prosecution must prove beyond a reasonable doubt that the defendant acted with intent to commit the crime, which includes knowledge that their actions were wrongful. If there is reasonable doubt about the defendant's knowledge of wrongdoing, it can prevent a conviction.
Learning Objectives
- Assess the impact of noncompliance with securities laws, including potential sanctions and liabilities.