What Can Put You in Jail
from January/February 2003
The Sarbanes-Oxley Act gives the SEC tough new enforcement powers, lengthens statutes of limitation, increases some maximum prison sentences, and adds several federal crimes to the list of offenses that could send directors and executives to jail. Examples:
Securities fraud involving a public company 25 years
The sentence waits for those who commit the new federal crime of “knowingly executing or attempting to execute a scheme or artifice to defraud.”
Destruction of documents to impede a financial investigation by regulators 20 years
This new federal crime is aimed at cover-ups or the alteration, destruction, or concealment of records.
Tampering with a document to be used in an official proceeding 20 years
The law expands an existing statute on tampering with witnesses.
Violation of the Securities Exchange Act 20 years
In the past, the maximum penalty for a “willful” violation was 10 years.
Mail fraud or wire fraud 20 years
The maximum penalty used to be five years.
Retaliating against a whistleblower 10 years
Any action against a whistleblower—including firing—can bring this new federal charge.
Violation of the Employee Retirement Income Security Act 10 years
The penalty was formerly one year.
