II 

110TH CONGRESS 

2D SESSION S. 3219 

To enhance penalties for violations of securities protections that involve 

targeting seniors. 

IN THE SENATE OF THE UNITED STATES 

JUNE 27, 2008 

Mr. CASEY (for himself and Mr. KOHL) 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 2008’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act, the following definitions shall apply: 

8 (1) SENIOR.—The term ‘‘senior’’ means an in9 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 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 the amount of penalty for each violation de15 scribed in paragraph (1) that may be imposed 

16 under subparagraph (A), (B), or (C) may be in17 creased by not more than $50,000, if the viola18 tion is primarily directed toward, targets, or is 

19 committed against an individual who, at the 

20 time of the violation, is 62 years of age or 

21 older.’’. 

22 (b) OTHER VIOLATIONS.—Section 24 of the Securi23 ties Act of 1933 (15 U.S.C. 77x) is amended— 

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

25 ‘‘Any person’’; and 


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

2 ‘‘(b) SPECIAL RULE FOR SENIORS.—Notwith3 standing subsection (a), the amount of a fine that may 

4 be imposed under subsection (a) may be increased by not 

5 more than $50,000, if the violation is primarily directed 

6 toward, targets, or is committed against an individual 

7 who, at the time of the violation, is 62 years of age or 

8 older.’’. 

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 the amount of penalty for each violation 

17 described in subparagraph (A) that may be 

18 imposed under clause (i), (ii), or (iii) may 

19 be increased by not more than $50,000, if 

20 the violation is primarily directed toward, 

21 targets, or is committed against an indi22 vidual who, at the time of the violation, is 

23 62 years of age or older.’’. 


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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), the amount of 

6 penalty for each violation described in subsection (a) 

7 that may be imposed under paragraph (1), (2), or 

8 (3) may be increased by not more than $50,000, if 

9 the violation is primarily directed toward, targets, or 

10 is committed against an individual who, at the time 

11 of the violation, is 62 years of age or older.’’. 

12 (c) OTHER VIOLATIONS.—Section 32 of the Securi13 ties Exchange Act of 1934 (15 U.S.C. 78ff) is amended 

14 by adding at the end the following: 

15 ‘‘(d) SPECIAL RULE FOR SENIORS.—Notwith16 standing subsection (a), the amount of fine that may be 

17 imposed under subsection (a) may be increased by not 

18 more than $50,000, if the violation is primarily directed 

19 toward, targets, or is committed against an individual 

20 who, at the time of the violation, is 62 years of age or 

21 older.’’. 


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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 the amount of penalty for each violation de9 scribed in paragraph (1) that may be imposed 

10 under subparagraph (A), (B), or (C) may be in11 creased by not more than $50,000, if the viola12 tion is primarily directed toward, targets, or is 

13 committed against an individual who, at the 

14 time of the violation, is 62 years of age or 

15 older.’’. 

16 (b) CIVIL ACTIONS.—Section 42(e)(2) of the Invest17 ment Company Act of 1940 (15 U.S.C. 80a–41(l)(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 the amount of penalty for each violation de22 scribed in paragraph (1) that may be imposed 

23 under subparagraph (A), (B), or (C) may be in24 creased by not more than $50,000, if the viola25 tion is primarily directed toward, targets, or is 

26 committed against an individual who, at the 


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1 time of the violation, is 62 years of age or 

2 older.’’. 

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), the amount of fine that may be 

11 imposed under subsection (a) may be increased by not 

12 more than $50,000, if the violation is primarily directed 

13 toward, targets, or is committed against an individual 

14 who, at the time of the violation, is 62 years of age or 

15 older.’’. 

16 SEC. 6. ENHANCED PENALTIES FOR VIOLATIONS OF IN17 VESTMENT ADVISERS ACT OF 1940. 

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

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

20 is amended by adding at the end the following: 

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

23 the amount of penalty for each violation de24 scribed in paragraph (1) that may be imposed 

25 under subparagraph (A), (B), or (C) may be inVerDate Aug 31 2005 03:42 Jul 01, 2008 Jkt 069200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3219.IS S3219

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1 creased by not more than $50,000, if the viola2 tion is primarily directed toward, targets, or is 

3 committed against an individual who, at the 

4 time of the violation, is 62 years of age or 

5 older.’’. 

6 (b) CIVIL ACTIONS.—Section 209(e)(2) of the Invest7 ment Advisers Act of 1940 (15 U.S.C. 80b–9(e)(2)) is 

8 amended by adding at the end the following: 

9 ‘‘(D) SPECIAL RULE FOR SENIORS.—Not10 withstanding subparagraphs (A), (B), and (C), 

11 the amount of penalty for each violation under 

12 this title that may be imposed under subpara13 graph (A), (B), or (C) may be increased by not 

14 more than $50,000, if the violation is primarily 

15 directed toward, targets, or is committed 

16 against an individual who, at the time of the 

17 violation, is 62 years of age or older.’’. 

18 (c) OTHER VIOLATIONS.—Section 217 of the Invest19 ment Advisers Act of 1940 (15 U.S.C. 80b–17) is amend20 ed— 

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

22 ‘‘Any person’’; and 

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

24 ‘‘(b) SPECIAL RULE FOR SENIORS.—Notwith25 standing subsection (a), the amount of fine that may be 


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1 imposed under subsection (a) may be increased by not 

2 more than $50,000, if the violation is primarily directed 

3 toward, targets, or is committed against an individual 

4 who, at the time of the violation, is 62 years of age or 

5 older.’’. 

6 SEC. 7. DIRECTIVE TO THE UNITED STATES SENTENCING 

7 COMMISSION. 

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

9 section 994(p) of title 28, United States Code, and in ac10 cordance with this section, the United States Sentencing 

11 Commission shall review and amend the Federal sen12 tencing guidelines and policy statements to ensure that the 

13 guideline offense levels and enhancements appropriately 

14 punish violations of the securities laws against seniors. 

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

16 the United States Sentencing Commission shall— 

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

18 Federal sentencing guidelines (and any successors 

19 thereto) apply to and punish offenses in which the 

20 victim of a violation of the securities laws is a sen21 ior; 

22 (2) ensure reasonable consistency with other 

23 relevant directives, provisions of the Federal sen24 tencing guidelines, and statutory provisions; 


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1 (3) make any necessary and conforming 

2 changes to the Federal sentencing guidelines, in ac3 cordance with the amendments made by this Act; 

4 and 

5 (4) ensure that the Federal sentencing guide6 lines adequately meet the purposes of sentencing set 

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

8 Code. 

Æ 


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