Which of the following conditions is necessary for an act involving securities fraud to be considered criminal and subject to criminal penalties?

In order for an act of fraud to be considered criminal, the perpetrator must have willfully committed

the fraudulent act. In this case, the Administrator will probably ask the court to impose criminal

penalties, but an Administrator can’t cause an act of fraud to be criminal by sending it to the criminal

court system. If an agent misleads a customer regarding the returns to be expected on an investment

but hasn’t deliberately done so, it is still fraud, but not criminal fraud, regardless of how much the

victims lost.