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Code · BILL · 113th Congress · S. 286 (Introduced in Senate) — To enhance civil penalties under the Federal securities laws, and for other purposes. · Sec. 2

Sec. 2. Updated civil money penalties for securities laws violations

1,296 words·~6 min read·/bill/113/s/286/is/section-2

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 8A(g)(2) of the Securities Act of 1933 ( 15 U.S.C. 77h–1(g)(2) ) is amended— in subparagraph (A)— by striking $7,500 and inserting $10,000 ; and by striking $75,000 and inserting $100,000 ; in subparagraph (B)— by striking $75,000 and inserting $100,000 ; and by striking $375,000 and inserting $500,000 ; and by amending subparagraph
(C)to read as follows: Notwithstanding subparagraphs
(A)and (B), the amount of penalty for each such act or omission shall not exceed the greater of— $1,000,000 for a natural person or $10,000,000 for any other person; 3 times the gross amount of pecuniary gain to the person who committed the act or omission; or the amount of losses incurred by victims as a result of the act or omission, if— the act or omission described in paragraph
(1)involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and such act or omission directly or indirectly resulted in— substantial losses or created a significant risk of substantial losses to other persons; or substantial pecuniary gain to the person who committed the act or omission. . Section 20(d)(2) of the Securities Act of 1933 ( 15 U.S.C. 77t(d)(2) ) is amended— in subparagraph (A)— by striking $5,000 and inserting $10,000 ; and by striking $50,000 and inserting $100,000 ; in subparagraph (B)— by striking $50,000 and inserting $100,000 ; and by striking $250,000 and inserting $500,000 ; and in subparagraph (C), by striking greater of
(i)$100,000 for a natural person or $500,000 for any other person, or
(ii)the gross amount of pecuniary gain to such defendant as a result of the violation and inserting the following: greater of— $1,000,000 for a natural person or $10,000,000 for any other person; 3 times the gross amount of pecuniary gain to such defendant as a result of the violation; or the amount of losses incurred by victims as a result of the violation . Section 21(d)(3)(B) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u(d)(3)(B) ) is amended— in clause (i)— by striking $5,000 and inserting $10,000 ; and by striking $50,000 and inserting $100,000 ; in clause (ii)— by striking $50,000 and inserting $100,000 ; and by striking $250,000 and inserting $500,000 ; and in clause (iii), by striking greater of
(I)$100,000 for a natural person or $500,000 for any other person, or
(II)the gross amount of pecuniary gain to such defendant as a result of the violation and inserting the following: greater of— $1,000,000 for a natural person or $10,000,000 for any other person; 3 times the gross amount of pecuniary gain to such defendant as a result of the violation; or the amount of losses incurred by victims as a result of the violation . Section 21B(b) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u–2(b) ) is amended— in paragraph (1)— by striking $5,000 and inserting $10,000 ; and by striking $50,000 and inserting $100,000 ; in paragraph (2)— by striking $50,000 and inserting $100,000 ; and by striking $250,000 and inserting $500,000 ; and by amending paragraph
(3)to read as follows: Notwithstanding paragraphs
(1)and (2), the amount of penalty for each such act or omission shall not exceed the greater of— $1,000,000 for a natural person or $10,000,000 for any other person; 3 times the gross amount of pecuniary gain to the person who committed the act or omission; or the amount of losses incurred by victims as a result of the act or omission, if— the act or omission described in subsection
(a)involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and such act or omission directly or indirectly resulted in substantial losses or created a significant risk of substantial losses to other persons or resulted in substantial pecuniary gain to the person who committed the act or omission. . Section 9(d)(2) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–9(d)(2) ) is amended— in subparagraph (A)— by striking $5,000 and inserting $10,000 ; and by striking $50,000 and inserting $100,000 ; in subparagraph (B)— by striking $50,000 and inserting $100,000 ; and by striking $250,000 and inserting $500,000 ; and by amending subparagraph
(C)to read as follows: Notwithstanding subparagraphs
(A)and (B), the amount of penalty for each such act or omission shall not exceed the greater of— $1,000,000 for a natural person or $10,000,000 for any other person; 3 times the gross amount of pecuniary gain to the person who committed the act or omission; or the amount of losses incurred by victims as a result of the act or omission, if— the act or omission described in paragraph
(1)involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and such act or omission directly or indirectly resulted in substantial losses or created a significant risk of substantial losses to other persons or resulted in substantial pecuniary gain to the person who committed the act or omission. . Section 42(e)(2) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–41(e)(2) ) is amended— in subparagraph (A)— by striking $5,000 and inserting $10,000 ; and by striking $50,000 and inserting $100,000 ; in subparagraph (B)— by striking $50,000 and inserting $100,000 ; and by striking $250,000 and inserting $500,000 ; and in subparagraph (C), by striking greater of
(i)$100,000 for a natural person or $500,000 for any other person, or
(ii)the gross amount of pecuniary gain to such defendant as a result of the violation and inserting the following: greater of— $1,000,000 for a natural person or $10,000,000 for any other person; 3 times the gross amount of pecuniary gain to such defendant as a result of the violation; or the amount of losses incurred by victims as a result of the violation . Section 203(i)(2) of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–3(i)(2) ) is amended— in subparagraph (A)— by striking $5,000 and inserting $10,000 ; and by striking $50,000 and inserting $100,000 ; in subparagraph (B)— by striking $50,000 and inserting $100,000 ; and by striking $250,000 and inserting $500,000 ; and by amending subparagraph
(C)to read as follows: Notwithstanding subparagraphs
(A)and (B), the amount of penalty for each such act or omission shall not exceed the greater of— $1,000,000 for a natural person or $10,000,000 for any other person; 3 times the gross amount of pecuniary gain to the person who committed the act or omission; or the amount of losses incurred by victims as a result of the act or omission, if— the act or omission described in paragraph
(1)involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and such act or omission directly or indirectly resulted in substantial losses or created a significant risk of substantial losses to other persons or resulted in substantial pecuniary gain to the person who committed the act or omission. . Section 209(e)(2) of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–9(e)(2) ) is amended— in subparagraph (A)— by striking $5,000 and inserting $10,000 ; and by striking $50,000 and inserting $100,000 ; in subparagraph (B)— by striking $50,000 and inserting $100,000 ; and by striking $250,000 and inserting $500,000 ; and in subparagraph (C), by striking greater of
(i)$100,000 for a natural person or $500,000 for any other person, or
(ii)the gross amount of pecuniary gain to such defendant as a result of the violation and inserting the following: greater of— $1,000,000 for a natural person or $10,000,000 for any other person; 3 times the gross amount of pecuniary gain to such defendant as a result of the violation; or the amount of losses incurred by victims as a result of the violation .
Connectionstraces to 2
6 references not yet in our index
  • 15 USC 77h–1(g)(2)
  • 15 USC 78u–2(b)
  • 15 USC 80a–9(d)(2)
  • 15 USC 80a–41(e)(2)
  • 15 USC 80b–3(i)(2)
  • 15 USC 80b–9(e)(2)
Citation graph
cites case law
Sec. 2
Updated civil money penalties for securities laws violations
U.S.C.§ 77t
U.S.C.§ 78u
Cite15 USC 77h–1(g)(2)
Cite15 USC 78u–2(b)
Cite15 USC 80a–9(d)(2)
Cite15 USC 80a–41(e)(2)
Cite15 USC 80b–3(i)(2)
Cites 8 · showing 7Cited by 0 across 0 sources
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