Senior Investor Protections Enhancement Act of 2009 - Amends the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940 to authorize the Securities and Exchange Commission (SEC) to impose, in addition to any other civil penalty, a maximum civil penalty of $50,000 for each violation that is directed toward, targets, or is committed against a person who at the time of the violation is age 62 or older.
Directs the United States Sentencing Commission to review and amend federal sentencing guidelines and policy statements to ensure that guideline offense levels and enhancements appropriately punish criminal violations of the securities laws against seniors.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3550 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3550
To enhance penalties for violations of securities protections that
involve targeting seniors.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 10, 2009
Mr. Hodes (for himself and Ms. Moore of Wisconsin) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committee on the Judiciary, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To enhance penalties for violations of securities protections that
involve targeting seniors.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Senior Investor Protections
Enhancement Act of 2009''.
SEC. 2. DEFINITIONS.
(a) In General.--In this Act, the following definitions shall
apply:
(1) Senior.--The term ``senior'' means an individual who is
62 years of age or older.
(2) Securities laws.--The term ``securities laws'' means
the Securities Act of 1933 (15 U.S.C. 77b 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 et seq.), and the
Investment Advisers Act of 1940 (15 U.S.C. 80b et seq.).
(b) Application of Senior Definition.--
(1) Securities act of 1933.--Section 2(a) of the Securities
Act of 1933 (15 U.S.C. 77b(a)) is amended by adding at the end
the following:
``(17) The term `senior' means an individual who is 62
years of age or older.''.
(2) Securities exchange act of 1934.--Section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended
by adding at the end the following:
``(65) The term `senior' means an individual who is 62
years of age or older.''.
(3) Investment company act of 1940.--Section 2(a) of the
Investment Company Act of 1940 (15 U.S.C. 80a-2(a)) is amended
by adding at the end the following:
``(54) The term `senior' means an individual who is 62
years of age or older.''.
(4) Investment advisers act of 1940.--Section 202(a) of the
Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)) is amended
by adding at the end the following:
``(29) The term `senior' means an individual who is 62
years of age or older.''.
SEC. 3. ENHANCED PENALTIES FOR VIOLATIONS OF SECURITIES ACT OF 1933.
(a) Civil Actions.--Section 20(d)(2) of the Securities Act of 1933
(15 U.S.C. 77t(d)(2)) is amended by adding at the end the following:
``(D) Special rule for seniors.--Notwithstanding
subparagraphs (A), (B), and (C), if a person commits a
violation described in paragraph (1), and the violation
is directed toward, targets, or is committed against a
person who, at the time of the violation, is a senior,
the Commission, in addition to any other applicable
civil penalty, may impose a civil penalty of not more
than $50,000 for each such violation.''.
(b) Other Violations.--Section 24 of the Securities Act of 1933 (15
U.S.C. 77x) is amended--
(1) by inserting ``(a) In General.--'' before ``Any
person''; and
(2) by adding at the end the following:
``(b) Special Rule for Seniors.--Notwithstanding subsection (a), if
a person commits a violation described in subsection (a), and the
violation is directed toward, targets, or is committed against a person
who, at the time of the violation is a senior, the Commission, in
addition to any other applicable civil penalty, may impose a civil
penalty of not more than $50,000 for each such violation.''.
SEC. 4. ENHANCED PENALTIES FOR VIOLATIONS OF SECURITIES ACT OF 1934.
(a) Civil Actions.--Section 21(d)(3)(B) of the Securities Exchange
Act of 1934 (15 U.S.C. 78u(d)(3)(B)) is amended by adding at the end
the following:
``(iv) Special rule for seniors.--
Notwithstanding clauses (i), (ii), and (iii),
if a person commits a violation described in
subparagraph (A), and the violation is directed
toward, targets, or is committed against a
person who, at the time of the violation, is a
senior, the Commission, in addition to any
other applicable civil penalty, may impose a
civil penalty of not more than $50,000 for each
such violation.''.
(b) Willful Violations.--Section 21B(b) of the Securities Exchange
Act of 1934 (15 U.S.C. 78u-2(b)) is amended by adding at the end the
following:
``(4) Special rule for seniors.--Notwithstanding paragraphs
(1), (2), and (3), if a person engages in an act or omission
described in subsection (a), and the violation is directed
toward, targets, or is committed against a person who, at the
time of the violation, is a senior, the Commission, in addition
to any other applicable civil penalty, may impose a civil
penalty of not more than $50,000 for each such violation.''.
(c) Other Violations.--Section 32 of the Securities Exchange Act of
1934 (15 U.S.C. 78ff) is amended by adding at the end the following:
``(d) Special Rule for Seniors.--Notwithstanding subsections (a),
(b), and (c), if a person commits a violation described in this
section, and the violation is directed toward, targets, or is committed
against a person, who at the time of the violation, is a senior, the
Commission, in addition to any other applicable civil penalty, may
impose a civil penalty of not more than $50,000 for each such
violation.''.
SEC. 5. ENHANCED PENALTIES FOR VIOLATIONS OF INVESTMENT COMPANY ACT OF
1940.
(a) Willful Violations.--Section 9(d)(2) of the Investment Company
Act of 1940 (15 U.S.C. 80a-9(d)(2)) is amended by adding at the end the
following:
``(D) Special rule for seniors.--Notwithstanding
subparagraphs (A), (B), and (C), if a person engages in
an act or omission described in paragraph (1), and the
violation is directed toward, targets, or is committed
against a person, who, at the time of the violation, is
a senior, the Commission, in addition to any other
applicable civil penalty, may impose a civil penalty of
not more than $50,000 for each such violation.''.
(b) Civil Actions.--Section 42(e)(2) of the Investment Company Act
of 1940 (15 U.S.C. 80a-41(e)(2)) is amended by adding at the end the
following:
``(D) Special rule for seniors.--Notwithstanding
subparagraphs (A), (B), and (C), if a person commits a
violation described in paragraph (1), and the violation
is directed toward, targets, or is committed against a
person who, at the time of the violation, is senior,
the Commission, in addition to any other applicable
civil penalty, may impose a civil penalty not more than
$50,000 for each such violation.''.
(c) Other Violations.--Section 49 of the Investment Company Act of
1940 (15 U.S.C. 80a-48) is amended--
(1) by inserting ``(a) In General.--'' before ``Any
person''; and
(2) by adding at the end the following:
``(b) Special Rule for Seniors.--Notwithstanding subsection (a), if
a person commits a violation described in subsection (a), and the
violation is directed toward, targets, or is committed against a person
who, at the time of the violation, is a senior, the Commission, in
addition to any other applicable civil penalty, may impose a civil
penalty of not more than $50,000 for each such violation.''.
SEC. 6. ENHANCED PENALTIES FOR VIOLATIONS OF INVESTMENT ADVISERS ACT OF
1940.
(a) Willful Violations.--Section 203(i)(2) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b-3(i)(2)) is amended by adding at
the end the following:
``(D) Special rule for seniors.--Notwithstanding
subparagraphs (A), (B), and (C), if a person engages in
an act or omission described in paragraph (1), and the
violation is directed toward, targets, or is committed
against a person who, at the time of the violation, is
a senior, the Commission, in addition to any other
applicable civil penalty, may impose a civil penalty of
not more than $50,000 for each such violation.''.
(b) Civil Actions.--Section 209(e)(2) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b-9(e)(2)) is amended by adding at the end the
following:
``(D) Special rule for seniors.--Notwithstanding
subparagraphs (A), (B), and (C), if a person commits a
violation under this title, and the violation is
directed toward, targets, or is committed against a
person who, at the time of the violation, is a senior,
the Commission, in addition to any other applicable
civil penalty, may impose a civil penalty of not more
than $50,000 for each such violation.''.
(c) Other Violations.--Section 217 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b-17) is amended--
(1) by inserting ``(a) In General.--'' before ``Any
person''; and
(2) by adding at the end the following:
``(b) Special Rule for Seniors.--Notwithstanding subsection (a), if
a person commits a violation described in subsection (a), and the
violation is directed toward, targets, or is committed against a person
who, at the time of the violation, is a senior, the Commission, in
addition to any other applicable civil penalty, may impose a civil
penalty of not more than $50,000 for each such violation.''.
SEC. 7. DIRECTIVE TO THE UNITED STATES SENTENCING COMMISSION.
(a) In General.--Pursuant to its authority under section 994(p) of
title 28, United States Code, and in accordance with this section, the
United States Sentencing Commission shall review and amend the Federal
sentencing guidelines and policy statements to ensure that the
guideline offense levels and enhancements appropriately punish
violations of the securities laws against seniors.
(b) Requirements.--In carrying out this section, the United States
Sentencing Commission shall--
(1) ensure that section 2B1.1 and 2C1.1 of the Federal
sentencing guidelines (and any successors thereto) apply to and
punish offenses in which the victim of a violation of the
securities laws is a senior;
(2) ensure reasonable consistency with other relevant
directives, provisions of the Federal sentencing guidelines,
and statutory provisions;
(3) make any necessary and conforming changes to the
Federal sentencing guidelines, in accordance with the
amendments made by this Act; and
(4) ensure that the Federal sentencing guidelines
adequately meet the purposes of sentencing set forth in section
3553(a)(2) of title 18, United States Code.
<all>
Introduced in House
Introduced in House
Referred to House Financial Services
Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to House Judiciary
Referred to the Subcommittee on Crime, Terrorism, and Homeland Security.
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