II 

113TH CONGRESS 

1ST SESSION S. 1185 

To enhance penalties for violations of securities protections that involve 

targeting seniors. 

IN THE SENATE OF THE UNITED STATES 

JUNE 19, 2013 

Mr. CASEY introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To enhance penalties for violations of securities protections 

that involve targeting seniors. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Senior Investor Protec5 tions Enhancement Act of 2013’’. 

6 SEC. 2. DEFINITIONS. 

7 (a) IN GENERAL.—In this Act, the following defini8 tions shall apply: 

9 (1) SENIOR.—The term ‘‘senior’’ means an in10 dividual who is 62 years of age or older. 


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1 (2) SECURITIES LAWS.—The term ‘‘securities 

2 laws’’ means the Securities Act of 1933 (15 U.S.C. 

3 77b et seq.), the Securities Exchange Act of 1934 

4 (15 U.S.C. 78a et seq.), the Investment Company 

5 Act of 1940 (15 U.S.C. 80a et seq.), and the Invest6 ment Advisers Act of 1940 (15 U.S.C. 80b et seq.). 

7 (b) APPLICATION OF SENIOR DEFINITION.— 

8 (1) SECURITIES ACT OF 1933.—Section 2(a) of 

9 the Securities Act of 1933 (15 U.S.C. 77b(a)) is 

10 amended by adding at the end the following: 

11 ‘‘(20) The term ‘senior’ means an individual 

12 who is 62 years of age or older.’’. 

13 (2) SECURITIES EXCHANGE ACT OF 1934.—Sec14 tion 3(a) of the Securities Exchange Act of 1934 

15 (15 U.S.C. 78c(a)) is amended— 

16 (A) by redesignating the first paragraph 

17 designated as (80), as added by 101(b)(2) of 

18 the Jumpstart Our Business Startups Act (126 

19 Stat. 307) (relating to emerging growth compa20 nies), as paragraph (81); and 

21 (B) by adding at the end the following: 

22 ‘‘(82) The term ‘senior’ means an individual 

23 who is 62 years of age or older.’’. 

24 (3) INVESTMENT COMPANY ACT OF 1940.—Sec25 tion 2(a) of the Investment Company Act of 1940 


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1 (15 U.S.C. 80a–2(a)) is amended by adding at the 

2 end the following: 

3 ‘‘(55) The term ‘senior’ means an individual 

4 who is 62 years of age or older.’’. 

5 (4) INVESTMENT ADVISERS ACT OF 1940.—Sec6 tion 202(a) of the Investment Advisers Act of 1940 

7 (15 U.S.C. 80b–2(a)) is amended— 

8 (A) by redesignating the second paragraph 

9 designated as paragraph (29), as added by sec10 tion 770 of the Wall Street Transparency and 

11 Accountability Act of 2010 (124 Stat. 1801), as 

12 paragraph (31) and moving such paragraph to 

13 the end; and 

14 (B) by adding at the end the following: 

15 ‘‘(32) The term ‘senior’ means an individual 

16 who is 62 years of age or older.’’. 

17 SEC. 3. ENHANCED PENALTIES FOR VIOLATIONS OF SECU18 RITIES ACT OF 1933. 

19 (a) CIVIL ACTIONS.—Section 20(d)(2) of the Securi20 ties Act of 1933 (15 U.S.C. 77t(d)(2)) is amended by add21 ing at the end the following: 

22 ‘‘(D) SPECIAL RULE FOR SENIORS.—Not23 withstanding subparagraphs (A), (B), and (C), 

24 if a person commits a violation described in 

25 paragraph (1), and the violation is directed toVerDate Mar 15 2010 02:29 Jun 22, 2013 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1185.IS S1185

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1 ward, targets, or is committed against a person 

2 who, at the time of the violation, is a senior, the 

3 Commission, in addition to any other applicable 

4 civil penalty, may impose a civil penalty of not 

5 more than $50,000 for each such violation.’’. 

6 (b) OTHER VIOLATIONS.—Section 24 of the Securi7 ties Act of 1933 (15 U.S.C. 77x) is amended— 

8 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

9 ‘‘Any person’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(b) SPECIAL RULE FOR SENIORS.—Notwith12 standing subsection (a), if a person commits a violation 

13 described in subsection (a), and the violation is directed 

14 toward, targets, or is committed against a person who, at 

15 the time of the violation is a senior, the Commission, in 

16 addition to any other applicable civil penalty, may impose 

17 a civil penalty of not more than $50,000 for each such 

18 violation.’’. 

19 SEC. 4. ENHANCED PENALTIES FOR VIOLATIONS OF SECU20 RITIES ACT OF 1934. 

21 (a) CIVIL ACTIONS.—Section 21(d)(3)(B) of the Se22 curities Exchange Act of 1934 (15 U.S.C. 78u(d)(3)(B)) 

23 is amended by adding at the end the following: 

24 ‘‘(iv) SPECIAL RULE FOR SENIORS.— 

25 Notwithstanding clauses (i), (ii), and (iii), 


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1 if a person commits a violation described 

2 in subparagraph (A), and the violation is 

3 directed toward, targets, or is committed 

4 against a person who, at the time of the 

5 violation, is a senior, the Commission, in 

6 addition to any other applicable civil pen7 alty, may impose a civil penalty of not 

8 more than $50,000 for each such viola9 tion.’’. 

10 (b) WILLFUL VIOLATIONS.—Section 21B(b) of the 

11 Securities Exchange Act of 1934 (15 U.S.C. 78u–2(b)) 

12 is amended by adding at the end the following: 

13 ‘‘(4) SPECIAL RULE FOR SENIORS.—Notwith14 standing paragraphs (1), (2), and (3), if a person 

15 engages in an act or omission described in sub16 section (a), and the violation is directed toward, tar17 gets, or is committed against a person who, at the 

18 time of the violation, is a senior, the Commission, in 

19 addition to any other applicable civil penalty, may 

20 impose a civil penalty of not more than $50,000 for 

21 each such violation.’’. 

22 (c) OTHER VIOLATIONS.—Section 32 of the Securi23 ties Exchange Act of 1934 (15 U.S.C. 78ff) is amended 

24 by adding at the end the following: 


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1 ‘‘(d) SPECIAL RULE FOR SENIORS.—Notwith2 standing subsections (a), (b), and (c), if a person commits 

3 a violation described in this section, and the violation is 

4 directed toward, targets, or is committed against a person, 

5 who at the time of the violation, is a senior, the Commis6 sion, in addition to any other applicable civil penalty, may 

7 impose a civil penalty of not more than $50,000 for each 

8 such violation.’’. 

9 SEC. 5. ENHANCED PENALTIES FOR VIOLATIONS OF IN10 VESTMENT COMPANY ACT OF 1940. 

11 (a) WILLFUL VIOLATIONS.—Section 9(d)(2) of the 

12 Investment Company Act of 1940 (15 U.S.C. 80a– 

13 9(d)(2)) is amended by adding at the end the following: 

14 ‘‘(D) SPECIAL RULE FOR SENIORS.—Not15 withstanding subparagraphs (A), (B), and (C), 

16 if a person engages in an act or omission de17 scribed in paragraph (1), and the violation is 

18 directed toward, targets, or is committed 

19 against a person, who, at the time of the viola20 tion, is a senior, the Commission, in addition to 

21 any other applicable civil penalty, may impose a 

22 civil penalty of not more than $50,000 for each 

23 such violation.’’. 


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1 (b) CIVIL ACTIONS.—Section 42(e)(2) of the Invest2 ment Company Act of 1940 (15 U.S.C. 80a–41(e)(2)) is 

3 amended by adding at the end the following: 

4 ‘‘(D) SPECIAL RULE FOR SENIORS.—Not5 withstanding subparagraphs (A), (B), and (C), 

6 if a person commits a violation described in 

7 paragraph (1), and the violation is directed to8 ward, targets, or is committed against a person 

9 who, at the time of the violation, is a senior, the 

10 Commission, in addition to any other applicable 

11 civil penalty, may impose a civil penalty not 

12 more than $50,000 for each such violation.’’. 

13 (c) OTHER VIOLATIONS.—Section 49 of the Invest14 ment Company Act of 1940 (15 U.S.C. 80a–48) is amend15 ed— 

16 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

17 ‘‘Any person’’; and 

18 (2) by adding at the end the following: 

19 ‘‘(b) SPECIAL RULE FOR SENIORS.—Notwith20 standing subsection (a), if a person commits a violation 

21 described in subsection (a), and the violation is directed 

22 toward, targets, or is committed against a person who, at 

23 the time of the violation, is a senior, the Commission, in 

24 addition to any other applicable civil penalty, may impose 


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1 a civil penalty of not more than $50,000 for each such 

2 violation.’’. 

3 SEC. 6. ENHANCED PENALTIES FOR VIOLATIONS OF IN4 VESTMENT ADVISERS ACT OF 1940. 

5 (a) WILLFUL VIOLATIONS.—Section 203(i)(2) of the 

6 Investment Advisers Act of 1940 (15 U.S.C. 80b–3(i)(2)) 

7 is amended by adding at the end the following: 

8 ‘‘(D) SPECIAL RULE FOR SENIORS.—Not9 withstanding subparagraphs (A), (B), and (C), 

10 if a person engages in an act or omission de11 scribed in paragraph (1), and the violation is 

12 directed toward, targets, or is committed 

13 against a person who, at the time of the viola14 tion, is a senior, the Commission, in addition to 

15 any other applicable civil penalty, may impose a 

16 civil penalty of not more than $50,000 for each 

17 such violation.’’. 

18 (b) CIVIL ACTIONS.—Section 209(e)(2) of the Invest19 ment Advisers Act of 1940 (15 U.S.C. 80b–9(e)(2)) is 

20 amended by adding at the end the following: 

21 ‘‘(D) SPECIAL RULE FOR SENIORS.—Not22 withstanding subparagraphs (A), (B), and (C), 

23 if a person commits a violation under this title, 

24 and the violation is directed toward, targets, or 

25 is committed against a person who, at the time 


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1 of the violation, is a senior, the Commission, in 

2 addition to any other applicable civil penalty, 

3 may impose a civil penalty of not more than 

4 $50,000 for each such violation.’’. 

5 (c) OTHER VIOLATIONS.—Section 217 of the Invest6 ment Advisers Act of 1940 (15 U.S.C. 80b–17) is amend7 ed— 

8 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

9 ‘‘Any person’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(b) SPECIAL RULE FOR SENIORS.—Notwith12 standing subsection (a), if a person commits a violation 

13 described in subsection (a), and the violation is directed 

14 toward, targets, or is committed against a person who, at 

15 the time of the violation, is a senior, the Commission, in 

16 addition to any other applicable civil penalty, may impose 

17 a civil penalty of not more than $50,000 for each such 

18 violation.’’. 

19 SEC. 7. DIRECTIVE TO THE UNITED STATES SENTENCING 

20 COMMISSION. 

21 (a) IN GENERAL.—Pursuant to its authority under 

22 section 994(p) of title 28, United States Code, and in ac23 cordance with this section, the United States Sentencing 

24 Commission shall review and amend the Federal sen25 tencing guidelines and policy statements to ensure that the 


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1 guideline offense levels and enhancements appropriately 

2 punish violations of the securities laws against seniors. 

3 (b) REQUIREMENTS.—In carrying out this section, 

4 the United States Sentencing Commission shall— 

5 (1) ensure that section 2B1.1 and 2C1.1 of the 

6 Federal sentencing guidelines (and any successors 

7 thereto) apply to and punish offenses in which the 

8 victim of a violation of the securities laws is a sen9 ior; 

10 (2) ensure reasonable consistency with other 

11 relevant directives, provisions of the Federal sen12 tencing guidelines, and statutory provisions; 

13 (3) make any necessary and conforming 

14 changes to the Federal sentencing guidelines, in ac15 cordance with the amendments made by this Act; 

16 and 

17 (4) ensure that the Federal sentencing guide18 lines adequately meet the purposes of sentencing set 

19 forth in section 3553(a)(2) of title 18, United States 

20 Code. 

Æ 


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