What is the maximum civil penalty for an individual found guilty of securities fraud?

The maximum civil penalty for an individual found guilty of securities fraud can indeed be up to $5 million. This figure aligns with the provisions outlined in the Securities Act of 1933 and the Securities Exchange Act of 1934, which empower the Securities and Exchange Commission (SEC) to impose substantial penalties on individuals for violations related to securities fraud.

Such a significant penalty serves as a deterrent against fraudulent activities in the securities market, ensuring accountability and promoting fair trading practices. The amount is also meant to reflect the severity of the offense and the potential damage caused to investors and the integrity of the financial markets. By establishing a high threshold for penalties, regulatory bodies aim to maintain investor confidence and protect the overall health of the financial system.

In comparison, the other listed amounts do not match the legal limitations established for civil penalties in cases of securities fraud. Thus, they do not reflect the maximum potential consequence that an individual could face under the law for such violations.