Bill > S2920

This bill strengthens civil penalties for securities law violations across four major acts: the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940. The legislation increases monetary penalties in both administrative and civil actions, introducing a tiered penalty system that significantly raises financial consequences for serious violations. For first and second-tier violations, penalties are increased from $5,000-$7,500 to $10,000-$100,000, and from $50,000-$75,000 to $100,000-$500,000. For third-tier violations involving fraud, deceit, or reckless disregard of regulations, penalties can now reach the greater of $1 million for individuals, $10 million for other entities, three times the perpetrator's pecuniary gain, or the total losses incurred by victims. Additionally, the bill introduces a fourth-tier penalty structure for recidivists, where individuals with prior securities fraud convictions or recent fraud-related judgments can face penalties up to three times the standard amounts. The legislation also clarifies that violations of injunctions or certain Commission orders can be treated as separate offenses, with each day of non-compliance potentially counted as a distinct violation, thereby providing stronger enforcement mechanisms for securities regulations.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/2920/all-info