Sec. 502. Investigations and prosecutions of violations of the securities laws
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Section 21(d) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u(d) ) is amended— in paragraph (3)— in the paragraph heading— by inserting before Civil ; and Money penalties by striking and inserting in civil actions ; and authority to seek disgorgement in subparagraph (A), by striking jurisdiction to impose and all that follows through the period at the end and inserting the following: “jurisdiction to— impose, upon a proper showing, a civil penalty to be paid by the person who committed such violation; and require disgorgement under paragraph
(7)by the person who received any unjust enrichment as a result of such violation. ; and in subparagraph (B)— in clause (i), in the first sentence, by striking the penalty and inserting a civil penalty imposed under subparagraph (A)(i) ; in clause (ii), by striking amount of penalty and inserting amount of a civil penalty imposed under subparagraph (A)(i) ; and in clause (iii), in the matter preceding item (aa), by striking amount of penalty for each such violation and inserting amount of a civil penalty imposed under subparagraph (A)(i) for each violation described in that subparagraph ; in paragraph (4), by inserting under paragraph
(7)after funds disgorged ; and by adding at the end the following: In any action or proceeding brought by the Commission under any provision of the securities laws, the Commission may seek, and any Federal court may order, disgorgement of any unjust enrichment that a person obtained as a result of a violation of that provision. Any disgorgement that is ordered with respect to a person under subparagraph
(A)shall be offset by any amount of restitution that the person is ordered to pay under paragraph (8). In any proceeding brought or instituted by the Commission under any provision of the securities laws, the Commission may seek, and any Federal court, or, with respect to a proceeding instituted by the Commission, the Commission, may order restitution to an investor in the amount of the loss that the investor sustained as a result of a violation of that provision by a person that is— registered as, or required to be registered as, a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, or transfer agent; or associated with, or, as of the date on which the violation occurs, seeking to become associated with, an entity described in subparagraph (A). The Commission may bring a claim for disgorgement under paragraph
(7)not later than 5 years after the date on which the person against which the claim is brought receives any unjust enrichment as a result of the violation that gives rise to the action or proceeding in which the Commission seeks the claim. The Commission may seek a claim for any equitable remedy, including for restitution under paragraph (8), an injunction, or a bar, suspension, or cease and desist order, not later than 12 years after the latest date on which a violation that gives rise to the claim occurs. For the purposes of calculating any limitations period under this paragraph with respect to an action or claim, any time in which the person against which the action or claim, as applicable, is brought is outside of the United States shall not count towards the accrual of that period. Nothing in paragraph
(7)or
(8)may be construed as altering any right that any private party may have to maintain a suit for a violation of this Act. . The amendments made by subsection
(a)shall apply with respect to any action or proceeding that is commenced on or after the date of enactment of this Act.
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Sec. 502
Investigations and prosecutions of violations of the securities laws
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