Sec. 102. Civil penalties and fines under the Commodity Exchange Act and related enforcement actions

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

Section 6(c)(10) of the Commodity Exchange Act ( 7 U.S.C. 9(10) ) is amended by striking subparagraph

(C)and inserting the following: assess such person— a civil penalty of not more than an amount equal to the greater of— $1,000,000, in the case of a person who is an individual, for each violation; $10,000,000, in the case of any person other than an individual, for each violation; triple the monetary gain to the person and all other persons acting in concert with the person, for each such violation; or triple the total amount of losses to persons proximately caused by each such violation; or a civil penalty of triple the maximum amount otherwise available under clause

(i)if the person, within 5 years preceding the violation, has been— found in a proceeding brought by the Commission, or by agreement of settlement to which the Commission is a party, to have recklessly, knowingly, or willfully violated any provision of this Act or of the rules, regulations, or orders of the Commission thereunder; found in a proceeding brought by the Securities and Exchange Commission, or by agreement of settlement to which the Securities and Exchange Commission is a party, to have recklessly, knowingly, or willfully violated any provision of the Securities Act of 1933 ( 15 U.S.C. 77a et seq. ), the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ), the Investment Company Act of 1940 ( 15 U.S.C. 80a–1 et seq. ), or the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–1 et seq. ), or of the rules, regulations, or orders of the Securities and Exchange Commission thereunder; found in a proceeding brought by the Federal Energy Regulatory Commission, or by agreement of settlement to which the Federal Energy Regulatory Commission is a party, to have recklessly, knowingly, or willfully violated any provision of the Federal Power Act ( 16 U.S.C. 792 et seq. ), the Natural Gas Act ( 15 U.S.C. 717 et seq. ), the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2601 et seq. ), the Natural Gas Policy Act of 1978 ( 15 U.S.C. 3301 et seq. ), or the rules, regulations, or orders of the Federal Energy Regulatory Commission issued thereunder; convicted of any criminal violation of this Act or of the rules, regulations, or orders of the Commission thereunder; convicted of any criminal violation of the Securities Act of 1933 ( 15 U.S.C. 77a et seq. ), the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ), the Investment Company Act of 1940 ( 15 U.S.C. 80a–1 et seq. ), or the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–1 et seq. ), or of the rules, regulations, or orders of the Securities and Exchange Commission thereunder; or convicted of any other criminal offense that involves any conduct, transaction, advice or activity related to any commodity interest, as that term is defined by the Commission, or security-based swap; and . Section 6(d) of the Commodity Exchange Act ( 7 U.S.C. 13b ) is amended— by inserting

(1)after

(d); by striking $140,000 or triple the monetary gain to such person, and inserting

(A)$1,000,000, in the case of a person who is an individual, for each violation,

(B)$10,000,000, in the case of any person other than an individual, for each violation,

(C)triple the monetary gain to the person and all other persons acting in concert with the person, for each such violation, or

(D)triple the total amount of losses to persons proximately caused by each such violation, ; and by adding at the end the following: A person may be held liable for a civil penalty in triple the amount otherwise available for a violation under this subsection if the person, within 5 years preceding such violation, has been— found in a proceeding brought by the Commission, or by agreement of settlement to which the Commission is a party, to have recklessly, knowingly, or willfully violated any provision of this Act or the rules, regulations, or orders of the Commission thereunder; found in a proceeding brought by the Securities and Exchange Commission, or by agreement of settlement to which the Securities and Exchange Commission is a party, to have recklessly, knowingly, or willfully violated any provision of the Securities Act of 1933 ( 15 U.S.C. 77a et seq. ), the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ), the Investment Company Act of 1940 ( 15 U.S.C. 80a–1 et seq. ), or the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–1 et seq. ), or of the rules, regulations, or orders of the Securities and Exchange Commission thereunder; found in a proceeding brought by the Federal Energy Regulatory Commission, or by agreement of settlement to which the Federal Energy Regulatory Commission is a party, to have recklessly, knowingly, or willfully violated any provision of the Federal Power Act ( 16 U.S.C. 792 et seq. ), the Natural Gas Act ( 15 U.S.C. 717 et seq. ), the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2601 et seq. ), the Natural Gas Policy Act of 1978 ( 15 U.S.C. 3301 et seq. ), or the rules, regulations, or orders of the Federal Energy Regulatory Commission issued thereunder; convicted of any criminal violation of this Act or the rules, regulations, or orders of the Commission thereunder; convicted of any criminal violation of the Securities Act of 1933 ( 15 U.S.C. 77a et seq. ), the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ), the Investment Company Act of 1940 ( 15 U.S.C. 80a–1 et seq. ), or the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–1 et seq. ), or of the rules, regulations, or orders of the Securities and Exchange Commission thereunder; or convicted of any other criminal offense that involves any conduct, transaction, advice or activity related to any commodity interest, as that term is defined by the Commission, or security-based swap. . Section 6b of the Commodity Exchange Act ( 7 U.S.C. 13a ) is amended— in the first sentence, by striking $500,000 for each such violation, or, in any case of manipulation or attempted manipulation in violation of section 6(c), 6(d), or 9(a)(2), a civil penalty of not more than $1,000,000 for each such violation and inserting

(A)$1,000,000, in the case of a person who is an individual, for each violation,

(B)$10,000,000, in the case of any person other than an individual, for each violation,

(C)triple the monetary gain to the person and all other persons acting in concert with the person, for each such violation, or

(D)triple the total amount of losses to persons proximately caused by each such violation, and such civil penalty shall be assessed for each violation on which a failure to enforce or other violation occurs or has occurred; provided that such registered entity, director, officer, agent, or employee may be assessed a civil penalty of triple the amount otherwise available if the person, within 5 years of such violation, has been

(i)found in a proceeding brought by the Commission, or by agreement of settlement to which the Commission is a party, to have recklessly, knowingly, or willfully violated any provision of this Act or the rules, regulations, or orders of the Commission thereunder,

(ii)found in a proceeding brought by the Securities and Exchange Commission, or by agreement of settlement to which the Securities and Exchange Commission is a party, to have recklessly, knowingly, or willfully violated any provision of the Securities Act of 1933 ( ; and 15 U.S.C. 77a et seq. ), the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ), the Investment Company Act of 1940 ( 15 U.S.C. 80a–1 et seq. ), or the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–1 et seq. ), or of the rules, regulations, or orders of the Securities and Exchange Commission thereunder,

(iii)found in a proceeding brought by the Federal Energy Regulatory Commission, or by agreement of settlement to which the Federal Energy Regulatory Commission is a party, to have recklessly, knowingly, or willfully violated any provision of the Federal Power Act ( 16 U.S.C. 792 et seq. ), the Natural Gas Act ( 15 U.S.C. 717 et seq. ), the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2601 et seq. ), the Natural Gas Policy Act of 1978 ( 15 U.S.C. 3301 et seq. ), or the rules, regulations, or orders of the Federal Energy Regulatory Commission issued thereunder,

(iv)convicted of any criminal violation of this Act or the rules, regulations, or orders of the Commission thereunder,

(v)convicted of any criminal violation of the Securities Act of 1933 ( 15 U.S.C. 77a et seq. ), the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ), the Investment Company Act of 1940 ( 15 U.S.C. 80a–1 et seq. ), or the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–1 et seq. ), or of the rules, regulations, or orders of the Securities and Exchange Commission thereunder, or

(vi)convicted of any other criminal offense that involves any conduct, transaction, advice or activity related to any commodity interest, as that term is defined by the Commission, or security-based swap in the second sentence, by striking $500,000 and inserting $1,000,000 . Section 6c(d) of the Commodity Exchange Act ( 7 U.S.C. 13a–1(d) ) is amended— in paragraph (1), in the matter preceding subparagraph (A), by inserting a civil penalty in the amount of after violation ; and by striking subparagraphs

(A)and

(B)of paragraph

(1)and inserting the following: not more than the greater of— $1,000,000, in the case of a person who is an individual, for each violation; $10,000,000, in the case of any person other than an individual, for each violation; triple the monetary gain to the person and all other persons acting in concert with the person, for each such violation; or triple the total amount of losses by persons proximately caused by each such violation; or triple the maximum amount otherwise available under subparagraph

(A)if the person, within 5 years preceding the violation, has been— found in a proceeding brought by the Commission, or by agreement of settlement to which the Commission is a party, to have recklessly, knowingly, or willfully violated any provision of this Act or of the rules, regulations, or orders of the Commission thereunder; found in a proceeding brought by the Securities and Exchange Commission, or by agreement of settlement to which the Securities and Exchange Commission is a party, to have recklessly, knowingly, or willfully violated any provision of the Securities Act of 1933 ( 15 U.S.C. 77a et seq. ), the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ), the Investment Company Act of 1940 ( 15 U.S.C. 80a–1 et seq. ), or the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–1 et seq. ), or of the rules, regulations, or orders of the Commission thereunder; found in a proceeding brought by the Federal Energy Regulatory Commission, or by agreement of settlement to which the Federal Energy Regulatory Commission is a party, to have recklessly, knowingly, or willfully violated any provision of the Federal Power Act ( 16 U.S.C. 792 et seq. ), the Natural Gas Act ( 15 U.S.C. 717 et seq. ), the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2601 et seq. ), the Natural Gas Policy Act of 1978 ( 15 U.S.C. 3301 et seq. ), or the rules, regulations, or orders of the Federal Energy Regulatory Commission issued thereunder; convicted of any criminal violation of this Act or of the rules, regulations, or orders of the Commission thereunder; convicted of any criminal violation of the Securities Act of 1933 ( 15 U.S.C. 77a et seq. ), the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ), the Investment Company Act of 1940 ( 15 U.S.C. 80a–1 et seq. ), or the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–1 et seq. ), or of the rules, regulations, or orders of the Securities and Exchange Commission thereunder; or convicted of any other criminal offense that involves any conduct, transaction, advice or activity related to any commodity interest, as that term is defined by the Commission, or security-based swap. . Section 9(a) of the Commodity Exchange Act ( 7 U.S.C. 13(a) ) is amended in the matter preceding paragraph

(1)by inserting after $1,000,000 the following: in the case of an individual for each violation or $10,000,000 in the case of any person other than an individual for each violation, . Section 9 of the Commodity Exchange Act ( 7 U.S.C. 13 ) is amended by adding at the end the following: An action, suit or proceeding for the enforcement of any civil fine, penalty, or forfeiture, pecuniary or otherwise, shall not be entertained unless commenced within 10 years after the date when the cause of action first accrued if, within the same period, the offender or the property is found within the United States in order that proper service may be made thereon. A cause of action accrues as of the date the Commission learns of facts sufficient to give the Commission notice that a violation has occurred. . The amendments made by this section shall take effect on the date that is 90 days after the date of the enactment of this Act.

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