LD 509
pg. 136
Page 135 of 183 An Act To Adopt the Maine Uniform Securities Act Page 137 of 183
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LR 441
Item 1

 
4. The appropriate state prosecutor under Section 508(b) may
decide whether to bring a criminal action under this statute,
another statute, or, when applicable, common law. In certain
states the administrator has full or limited criminal enforcement
powers.

 
5. This section does not specify maximum dollar amounts for
criminal fines, maximum terms for imprisonment, nor the years of
limitation, but does provide for each state to specify
appropriate magnitudes for criminal fines or maximum terms for
imprisonment.

 
6. The definition of willfulness in Comment 2 to Section 508
has been followed by most courts. See, e.g., State v. Hodge, 460
P.2d 596, 604 (Kan. 1969) ("No specific intent is necessary to
constitute the offense where one violates the securities act
except the intent to do the act denounced by the statute"); State
v. Nagel, 279 N.W.2d 911, 915 (S.D. 1979) ("[I]t is widely
understood that the legislature may forbid the doing of an act
and make its commission a crime without regard to the intent or
knowledge of the doer"); State v. Fries, 337 N.W.2d 398, 405
(Neb. 1983) (proof of a specific intent, evil motive, or
knowledge that the law was being violated is not required to
sustain a criminal conviction under a state's blue sky law);
People v. Riley, 708 P.2d 1359, 1362 (Colo. 1985) ("A person acts
'knowingly' or 'willfully' with respect to conduct . . . when he
is aware that his conduct . . . exists"); State v. Larsen, 865
P.2d 1355, 1358 (Utah 1993) (willful implies a willingness to
commit the act, not an intent to violate the law or to injure
another or acquire any advantage); State v . Montgomery, 17 P.3d
292, 294 (Idaho 2001) (bad faith is not required for a violation
of a state securities act; willful implies "simply a purpose or
willingness to commit the act or make the omission referred to");
State v. Dumke, 901 S.W.2d 100, 102 (Mo. Ct. App. 1995) (mens rea
not required); State v. Mueller, 549 N.W.2d 455, 460 (Wis. Ct.
App. 1996) (willfulness does not require proof that the defendant
acted with intent to defraud or knowledge that the law was
violated); United States v. Lilley, 291 F. Supp. 989, 993 (S.D.
Tex. 1968) ("no knowledge" clause in federal statute not
available to defendant claiming lack of knowledge of particular
SEC rule).

 
Maine Comments

 
1. Section 16508(1): The model Uniform Securities Act
version of this section and other sections referred to "willful"
violations of law, whereas the Revised Maine Securities Act
referred instead to "intentional or knowing" violations of law.
Maine retains the words "intentional or knowing" because that


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