Series 82: 1.2.1.7.2. Insider Trading Penalties

Taken from our Series 82 Online Guide

1.2.1.7.2. Insider Trading Penalties

Insider trading is subject to a civil penalty of treble damages (three times the amount of the benefit obtained by the violation). Benefit obtained means gain or loss avoided. The maximum civil penalty that can be imposed on a firm when an employee engages in insider trading is the greater of $1 million and three times the amount of the profit gained or loss avoided as a result of the violation.

For more severe instances, the Justice Department may bring criminal charges, carrying maximum penalties for individuals of $5 million for each willful violation and/or 20 years in prison. The statute of limitations is six years for criminal insider trading violations and five years for civil insider trading violations.

SUMMARY TABLE

Maximum Penalties for Insider Trading

Civil

Criminal

Since you're reading about Series 82: 1.2.1.7.2. Insider Trading Penalties, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 82
Please Enable Javascript
to view this content!