I 
116TH CONGRESS 
1ST SESSION H. R. 3641 
To enhance civil penalties under the Federal securities laws, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 9, 2019 
Ms. PORTER introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To enhance civil penalties under the Federal securities laws, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stronger Enforcement 
of Civil Penalties Act of 2019’’. 
SEC. 2. UPDATED CIVIL MONEY PENALTIES FOR SECURI-
TIES LAWS VIOLATIONS. 
(a) SECURITIES ACT OF 1933.— 
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(1) MONEY PENALTIES IN ADMINISTRATIVE AC-
TIONS.—Section 8A(g)(2) of the Securities Act of 
1933 (15 U.S.C. 77h–1(g)(2)) is amended— 
(A) in subparagraph (A)— 
(i) by striking ‘‘$7,500’’ and inserting 
‘‘$10,000’’; and 
(ii) by striking ‘‘$75,000’’ and insert-
ing ‘‘$100,000’’; 
(B) in subparagraph (B)— 
(i) by striking ‘‘$75,000’’ and insert-
ing ‘‘$100,000’’; and 
(ii) by striking ‘‘$375,000’’ and in-
serting ‘‘$500,000’’; and 
(C) by striking subparagraph (C) and in-
serting the following: 
‘‘(C) THIRD TIER.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraphs (A) and (B), for a third 
tier act or omission, the amount of penalty 
for each such act or omission shall not ex-
ceed the greater of— 
‘‘(I) $1,000,000 for a natural 
person or $10,000,000 for any other 
person; 
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‘‘(II) 3 times the gross amount of 
pecuniary gain to the person who 
committed the act or omission; or 
‘‘(III) the amount of losses in-
curred by victims as a result of the 
act or omission. 
‘‘(ii) THIRD TIER ACT OR OMISSION.— 
For the purposes of this subparagraph, the 
term ‘third tier act or omission’ means an 
act or omission described in paragraph (1) 
that— 
‘‘(I) involved fraud, deceit, ma-
nipulation, or deliberate or reckless 
disregard of a regulatory requirement; 
and 
‘‘(II) directly or indirectly— 
‘‘(aa) resulted in substantial 
losses to other persons; 
‘‘(bb) created a significant 
risk of substantial losses to other 
persons; or 
‘‘(cc) resulted in substantial 
pecuniary gain to the person who 
committed the act or omission.’’. 
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(2) MONEY
PENALTIES
IN
CIVIL
ACTIONS.— 
Section 20(d)(2) of the Securities Act of 1933 (15 
U.S.C. 77t(d)(2)) is amended— 
(A) in subparagraph (A)— 
(i) by striking ‘‘$5,000’’ and inserting 
‘‘$10,000’’; and 
(ii) by striking ‘‘$50,000’’ and insert-
ing ‘‘$100,000’’; 
(B) in subparagraph (B)— 
(i) by striking ‘‘$50,000’’ and insert-
ing ‘‘$100,000’’; and 
(ii) by striking ‘‘$250,000’’ and in-
serting ‘‘$500,000’’; and 
(C) by striking subparagraph (C) and in-
serting the following: 
‘‘(C) THIRD TIER.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraphs (A) and (B), for a third 
tier violation, the amount of penalty for 
each violation shall not exceed the greater 
of— 
‘‘(I) $1,000,000 for a natural 
person or $10,000,000 for any other 
person; 
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