I 
112TH CONGRESS 
1ST SESSION 
H. R. 774 
To enhance penalties for violations of securities protections that involve 
targeting seniors. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 17, 2011 
Mr. DEUTCH introduced the following bill; which was referred to the Com-
mittee 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 jurisdic-
tion 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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Senior Investor Protec-
tions Enhancement Act of 2011’’. 
SEC. 2. DEFINITIONS. 
(a) IN GENERAL.—In this Act, the following defini-
tions shall apply: 
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(1) SENIOR.—The term ‘‘senior’’ means an in-
dividual 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 Invest-
ment 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: 
‘‘(19) The term ‘senior’ means an individual 
who is 62 years of age or older.’’. 
(2) SECURITIES EXCHANGE ACT OF 1934.—Sec-
tion 3(a) of the Securities Exchange Act of 1934 
(15 U.S.C. 78c(a)) is amended by adding at the end 
the following: 
‘‘(79) The term ‘senior’ means an individual 
who is 62 years of age or older.’’. 
(3) INVESTMENT COMPANY ACT OF 1940.—Sec-
tion 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: 
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‘‘(55) The term ‘senior’ means an individual 
who is 62 years of age or older.’’. 
(4) INVESTMENT ADVISERS ACT OF 1940.—Sec-
tion 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: 
‘‘(31) The term ‘senior’ means an individual 
who is 62 years of age or older.’’. 
SEC. 3. ENHANCED PENALTIES FOR VIOLATIONS OF SECU-
RITIES ACT OF 1933. 
(a) CIVIL ACTIONS.—Section 20(d)(2) of the Securi-
ties Act of 1933 (15 U.S.C. 77t(d)(2)) is amended by add-
ing at the end the following: 
‘‘(D) SPECIAL RULE FOR SENIORS.—Not-
withstanding subparagraphs (A), (B), and (C), 
if a person commits a violation described in 
paragraph (1), and the violation is directed to-
ward, 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 Securi-
ties Act of 1933 (15 U.S.C. 77x) is amended— 
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(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘Any person’’; and 
(2) by adding at the end the following: 
‘‘(b) 
SPECIAL
RULE
FOR
SENIORS.—Notwith-
standing 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 SECU-
RITIES ACT OF 1934. 
(a) CIVIL ACTIONS.—Section 21(d)(3)(B) of the Se-
curities 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 pen-
alty, may impose a civil penalty of not 
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more than $50,000 for each such viola-
tion.’’. 
(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.—Notwith-
standing paragraphs (1), (2), and (3), if a person 
engages in an act or omission described in sub-
section (a), and the violation is directed toward, tar-
gets, 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 Securi-
ties Exchange Act of 1934 (15 U.S.C. 78ff) is amended 
by adding at the end the following: 
‘‘(d) SPECIAL
RULE
FOR
SENIORS.—Notwith-
standing 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 Commis-
sion, in addition to any other applicable civil penalty, may 
impose a civil penalty of not more than $50,000 for each 
such violation.’’. 
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SEC. 5. ENHANCED PENALTIES FOR VIOLATIONS OF IN-
VESTMENT 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.—Not-
withstanding subparagraphs (A), (B), and (C), 
if a person engages in an act or omission de-
scribed in paragraph (1), and the violation is 
directed toward, targets, or is committed 
against a person, who, at the time of the viola-
tion, 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 Invest-
ment 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.—Not-
withstanding subparagraphs (A), (B), and (C), 
if a person commits a violation described in 
paragraph (1), and the violation is directed to-
ward, 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 
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civil penalty, may impose a civil penalty not 
more than $50,000 for each such violation.’’. 
(c) OTHER VIOLATIONS.—Section 49 of the Invest-
ment Company Act of 1940 (15 U.S.C. 80a–48) is amend-
ed— 
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘Any person’’; and 
(2) by adding at the end the following: 
‘‘(b) 
SPECIAL
RULE
FOR
SENIORS.—Notwith-
standing 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 IN-
VESTMENT 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.—Not-
withstanding subparagraphs (A), (B), and (C), 
if a person engages in an act or omission de-
scribed in paragraph (1), and the violation is 
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directed toward, targets, or is committed 
against a person who, at the time of the viola-
tion, 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 Invest-
ment 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.—Not-
withstanding 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 Invest-
ment Advisers Act of 1940 (15 U.S.C. 80b–17) is amend-
ed— 
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘Any person’’; and 
(2) by adding at the end the following: 
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