II 

111TH CONGRESS 

1ST SESSION S. 1659 

To enhance penalties for violations of securities protections that involve 

targeting seniors. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 10, 2009 

Mr. CASEY (for himself, Mrs. GILLIBRAND, Mr. KOHL, and Mrs. SHAHEEN) 

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 2009’’. 

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 ‘‘(17) 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 by adding at the end 

16 the following: 

17 ‘‘(65) The term ‘senior’ means an individual 

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

19 (3) INVESTMENT COMPANY ACT OF 1940.—Sec20 tion 2(a) of the Investment Company Act of 1940 

21 (15 U.S.C. 80a–2(a)) is amended by adding at the 

22 end the following: 

23 ‘‘(54) The term ‘senior’ means an individual 

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


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1 (4) INVESTMENT ADVISERS ACT OF 1940.—Sec2 tion 202(a) of the Investment Advisers Act of 1940 

3 (15 U.S.C. 80b–2(a)) is amended by adding at the 

4 end the following: 

5 ‘‘(29) The term ‘senior’ means an individual 

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

7 SEC. 3. ENHANCED PENALTIES FOR VIOLATIONS OF SECU8 RITIES ACT OF 1933. 

9 (a) CIVIL ACTIONS.—Section 20(d)(2) of the Securi10 ties Act of 1933 (15 U.S.C. 77t(d)(2)) is amended by add11 ing at the end the following: 

12 ‘‘(D) SPECIAL RULE FOR SENIORS.—Not13 withstanding subparagraphs (A), (B), and (C), 

14 if a person commits a violation described in 

15 paragraph (1), and the violation is directed to16 ward, targets, or is committed against a person 

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

18 Commission, in addition to any other applicable 

19 civil penalty, may impose a civil penalty of not 

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

21 (b) OTHER VIOLATIONS.—Section 24 of the Securi22 ties Act of 1933 (15 U.S.C. 77x) is amended— 

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

24 ‘‘Any person’’; and 

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


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1 ‘‘(b) SPECIAL RULE FOR SENIORS.—Notwith2 standing subsection (a), if a person commits a violation 

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

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

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

6 addition to any other applicable civil penalty, may impose 

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

8 violation.’’. 

9 SEC. 4. ENHANCED PENALTIES FOR VIOLATIONS OF SECU10 RITIES ACT OF 1934. 

11 (a) CIVIL ACTIONS.—Section 21(d)(3)(B) of the Se12 curities Exchange Act of 1934 (15 U.S.C. 78u(d)(3)(B)) 

13 is amended by adding at the end the following: 

14 ‘‘(iv) SPECIAL RULE FOR SENIORS.— 

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

16 if a person commits a violation described 

17 in subparagraph (A), and the violation is 

18 directed toward, targets, or is committed 

19 against a person who, at the time of the 

20 violation, is a senior, the Commission, in 

21 addition to any other applicable civil pen22 alty, may impose a civil penalty of not 

23 more than $50,000 for each such viola24 tion.’’. 


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

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

3 is amended by adding at the end the following: 

4 ‘‘(4) SPECIAL RULE FOR SENIORS.—Notwith5 standing paragraphs (1), (2), and (3), if a person 

6 engages in an act or omission described in sub7 section (a), and the violation is directed toward, tar8 gets, or is committed against a person who, at the 

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

10 addition to any other applicable civil penalty, may 

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

12 each such violation.’’. 

13 (c) OTHER VIOLATIONS.—Section 32 of the Securi14 ties Exchange Act of 1934 (15 U.S.C. 78ff) is amended 

15 by adding at the end the following: 

16 ‘‘(d) SPECIAL RULE FOR SENIORS.—Notwith17 standing subsections (a), (b), and (c), if a person commits 

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

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

20 who at the time of the violation, is a senior, the Commis21 sion, in addition to any other applicable civil penalty, may 

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

23 such violation.’’. 


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1 SEC. 5. ENHANCED PENALTIES FOR VIOLATIONS OF IN2 VESTMENT COMPANY ACT OF 1940. 

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

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

5 9(d)(2)) is amended by adding at the end the following: 

6 ‘‘(D) SPECIAL RULE FOR SENIORS.—Not7 withstanding subparagraphs (A), (B), and (C), 

8 if a person engages in an act or omission de9 scribed in paragraph (1), and the violation is 

10 directed toward, targets, or is committed 

11 against a person, who, at the time of the viola12 tion, is a senior, the Commission, in addition to 

13 any other applicable civil penalty, may impose a 

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

15 such violation.’’. 

16 (b) CIVIL ACTIONS.—Section 42(e)(2) of the Invest17 ment Company Act of 1940 (15 U.S.C. 80a–41(e)(2)) is 

18 amended by adding at the end the following: 

19 ‘‘(D) SPECIAL RULE FOR SENIORS.—Not20 withstanding subparagraphs (A), (B), and (C), 

21 if a person commits a violation described in 

22 paragraph (1), and the violation is directed to23 ward, targets, or is committed against a person 

24 who, at the time of the violation, is senior, the 

25 Commission, in addition to any other applicable 


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1 civil penalty, may impose a civil penalty not 

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

3 (c) OTHER VIOLATIONS.—Section 49 of the Invest4 ment Company Act of 1940 (15 U.S.C. 80a–48) is amend5 ed— 

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

7 ‘‘Any person’’; and 

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

9 ‘‘(b) SPECIAL RULE FOR SENIORS.—Notwith10 standing subsection (a), if a person commits a violation 

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

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

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

14 addition to any other applicable civil penalty, may impose 

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

16 violation.’’. 

17 SEC. 6. ENHANCED PENALTIES FOR VIOLATIONS OF IN18 VESTMENT ADVISERS ACT OF 1940. 

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

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

21 is amended by adding at the end the following: 

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

24 if a person engages in an act or omission de25 scribed in paragraph (1), and the violation is 


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1 directed toward, targets, or is committed 

2 against a person who, at the time of the viola3 tion, is a senior, the Commission, in addition to 

4 any other applicable civil penalty, may impose a 

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

6 such violation.’’. 

7 (b) CIVIL ACTIONS.—Section 209(e)(2) of the Invest8 ment Advisers Act of 1940 (15 U.S.C. 80b–9(e)(2)) is 

9 amended by adding at the end the following: 

10 ‘‘(D) SPECIAL RULE FOR SENIORS.—Not11 withstanding subparagraphs (A), (B), and (C), 

12 if a person commits a violation under this title, 

13 and the violation is directed toward, targets, or 

14 is committed against a person who, at the time 

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

16 addition to any other applicable civil penalty, 

17 may impose a civil penalty of not more than 

18 $50,000 for each such violation.’’. 

19 (c) OTHER VIOLATIONS.—Section 217 of the Invest20 ment Advisers Act of 1940 (15 U.S.C. 80b–17) is amend21 ed— 

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

23 ‘‘Any person’’; and 

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


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1 ‘‘(b) SPECIAL RULE FOR SENIORS.—Notwith2 standing subsection (a), if a person commits a violation 

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

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

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

6 addition to any other applicable civil penalty, may impose 

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

8 violation.’’. 

9 SEC. 7. DIRECTIVE TO THE UNITED STATES SENTENCING 

10 COMMISSION. 

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

12 section 994(p) of title 28, United States Code, and in ac13 cordance with this section, the United States Sentencing 

14 Commission shall review and amend the Federal sen15 tencing guidelines and policy statements to ensure that the 

16 guideline offense levels and enhancements appropriately 

17 punish violations of the securities laws against seniors. 

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

19 the United States Sentencing Commission shall— 

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

21 Federal sentencing guidelines (and any successors 

22 thereto) apply to and punish offenses in which the 

23 victim of a violation of the securities laws is a sen24 ior; 


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1 (2) ensure reasonable consistency with other 

2 relevant directives, provisions of the Federal sen3 tencing guidelines, and statutory provisions; 

4 (3) make any necessary and conforming 

5 changes to the Federal sentencing guidelines, in ac6 cordance with the amendments made by this Act; 

7 and 

8 (4) ensure that the Federal sentencing guide9 lines adequately meet the purposes of sentencing set 

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

11 Code. 

Æ 


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