In most cases, a securities fraud action or corporate fraud action will take place in federal court, beginning at the district court level. These types of securities law violations are instigated on the civil side by the Securities and Exchange Commission ("SEC"),and on the criminal side by federal and/or state prosecutors or district attorneys. A person or a business entity can face both civil and criminal court actions for the alleged violation of securities laws and regulations. However, the National Association of Securities Dealers ("NASD") or another dispute resolution agency often handles brokerage fraud disputes, which are governed by federal and state securities laws. The NASD regulates its own members, and can remove a member brokerage firm for failing to follow the standards set forth in securities laws and regulations. Wherever a securities fraud action occurs, however, it is essential for the accused individual and/or business entity to seek legal representation by an experiences securities fraud attorney, so as to avoid potentially disastrous civil and criminal penalties for securities law violations.