Pennsylvania Statutes Title 70 P.S. Securities § 1-511. Criminal penalties

(a) Except as provided in this section, a person who wilfully violates any material provision of this act, except section 407(a),  1 or any rule under this act, or any order of which he has notice, or who violates section 407(a) knowing that the statement made was false or misleading in any material respect, commits a felony of the third degree and may be fined not more than two hundred fifty thousand dollars ($250,000) or imprisoned for not more than seven years, or both, if the amount of money paid by the purchaser for the securities involved in the violation is less than two hundred fifty thousand dollars ($250,000), and not more than five hundred thousand dollars ($500,000) or imprisoned for not more than seven years, or both, if the amount of money or securities involved in the violation is two hundred fifty thousand dollars ($250,000) or more.  In addition to fine or imprisonment, or both, a person may be sentenced to make restitution.

(b) A person who wilfully violates section 401,  2 408   3 or 409   4 commits a felony of the second degree and may be fined not more than one million dollars ($1,000,000) or imprisoned for not more than ten years, or both.  In addition to fine or imprisonment, or both, the person may be sentenced to make restitution.

(c)(1) A person who wilfully violates section 401, 408 or 409 commits a felony of the first degree and may be fined not more than five million dollars ($5,000,000) or imprisoned for not more than twenty years, or both, if one of the conditions specified in paragraph (2) or (3) is met, and not more than ten million dollars ($10,000,000) or imprisoned for not more than twenty years, or both, if both of the conditions specified in paragraphs (2) and (3) are met.  In addition to a fine or imprisonment, or both, the person may be sentenced to make restitution.

(2) Within ten years of being convicted under this subsection for wilful violation of section 401, 408 or 409, the person was the subject of:

(i) a criminal felony conviction;

(ii) an injunction issued by any court of competent jurisdiction;  or

(iii) an order of the Securities and Exchange Commission, the Commodity Futures Trading Commission, the securities, banking or insurance regulator of another state, a Federal banking regulator or the securities, banking or insurance regulatory authority of another country which found that the person wilfully violated any provision of the Federal or State securities, banking, insurance or commodities laws or the securities, commodities, insurance or banking laws of that country.

(3) One or more of the victims of the unlawful conduct is sixty years of age or older.

(d) A person who knowingly alters, destroys, shreds, mutilates, conceals, covers up, falsifies or makes a false entry in any record, document or tangible object with the intent to impede, obstruct or influence an investigation by the department under section 510   5 or an examination under section 304(d) commits a felony of the second degree and may be fined not more than five hundred thousand dollars ($500,000) or imprisoned for not more than ten years, or both.

(e) A person who knowingly alters, destroys, shreds, mutilates or conceals a record, document or other object or attempts to do so with the intent to impair its integrity or availability for use in a proceeding before the department or in a proceeding brought by the department or otherwise obstructs, influences or impedes such proceedings or attempts to do so commits a felony of the second degree and may be fined not more than five hundred thousand dollars ($500,000) or imprisoned for not more than ten years, or both.

(f) A person who knowingly, with the intent to retaliate, takes any action harmful to another person, including interference with the lawful employment or livelihood of another person, for providing the department with any truthful information relating to a violation of this act commits a felony of the second degree and may be fined not more than five hundred thousand dollars ($500,000) or imprisoned for not more than ten years, or both.

(g)(1) Each of the acts specified in subsections (a) through (f) shall constitute a separate offense, and a prosecution or conviction for any such offense shall not bar prosecution or conviction for any other offense.  No indictment or information may be returned under this act more than five years after the alleged violation.

(2) This section shall be construed to provide additional and cumulative remedies, and nothing contained in this act shall be construed to affect the ability of the Commonwealth to bring an information or indictment under common law or other criminal statutory provisions for the same conduct.

(h) The following persons have jurisdiction to investigate violations of this section and institute criminal proceedings for any violation of this section:

(1) The district attorney of a county.

(2) The Attorney General, in addition to the authority conferred upon the Attorney General by the act of October 15, 1980 (P.L. 950, No. 164),  6 known as the “Commonwealth Attorneys Act.”  This paragraph includes authority over a series of violations involving more than one county of this Commonwealth or involving any county of this Commonwealth and another state.  No person charged with a violation of this section by the Attorney General shall have standing to challenge the authority of the Attorney General to investigate or prosecute the case, and, if any such challenge is made, the challenge shall be dismissed and no relief shall be available in the courts of this Commonwealth to the person making the challenge.

(i) No person charged with a violation of this section by the Attorney General shall have standing to challenge the authority of the Attorney General to investigate or prosecute the case, and, if any such challenge is made, the challenge shall be dismissed and no relief shall be available in the courts of this Commonwealth to the person making the challenge.

1 70 P.S. § 407.
2 70 P.S. § 401.
3 70 P.S. § 1-408.
4 70 P.S. § 1-409.
5 70 P.S. § 1-510.
6 71 P.S. § 732-101 et seq.

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