What are the penalties for violation of the '34 Act?

The penalties for violation of the Securities Exchange Act of 1934, commonly referred to as the '34 Act, are structured to deter misconduct in securities transactions. Violations can lead to both criminal fines and prison time. Specifically, the '34 Act allows for criminal penalties, which can include both fines and imprisonment.

In particular, individuals found guilty of willfully violating the provisions of the '34 Act can face severe consequences. This typically includes the potential for a prison sentence of up to 10 years, reflecting the seriousness with which the law treats securities fraud. Additionally, there are fines associated with violations, which can be as much as $10,000.

Thus, the option that combines a $10,000 fine and the possibility of 10 years in prison accurately encapsulates the serious nature of these penalties under the '34 Act, making it the correct choice.