NASAA Reports Large Increase in Prison Time for Securities Violations
The North American Securities Administrators Association (NASAA), the organization of state securities regulators, reports that prison time for securities violators increased significantly in 2013 over the previous year. NASAA indicates that state securities regulators sentenced wrongdoers to 1816 years of jail time in 2013, a 33% increase over the prior year. The average sentence was 5.5 years, a 53% increase. Also, state enforcement actions yielded $616 Million in funds returned to investors and an additional $72 Million in fines.
OUR TAKE: The state securities regulators are much more tied to traditional law enforcement than the SEC, which is more of a regulatory body with the ability to refer criminal actions to the Justice Department.