I 
118TH CONGRESS 
2D SESSION 
H. R. 9451 
To enhance civil penalties under the Federal securities laws, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 3, 2024 
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 2024’’. 
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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‘‘(II) 3 times the gross amount of 
pecuniary gain to the person who 
committed the violation; or 
‘‘(III) the amount of losses in-
curred by victims as a result of the 
violation. 
‘‘(ii) THIRD
TIER
VIOLATION.—For 
the purposes of this subparagraph, the 
term ‘third tier violation’ means a violation 
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 violation.’’. 
(b) SECURITIES EXCHANGE ACT OF 1934.— 
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(1) MONEY
PENALTIES
IN
CIVIL
ACTIONS.— 
Section 21(d)(3)(B) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78u(d)(3)(B)) is amended— 
(A) in clause (i)— 
(i) by striking ‘‘$5,000’’ and inserting 
‘‘$10,000’’; and 
(ii) by striking ‘‘$50,000’’ and insert-
ing ‘‘$100,000’’; 
(B) in clause (ii)— 
(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 clause (iii) and inserting 
the following: 
‘‘(iii) THIRD TIER.— 
‘‘(I) 
IN
GENERAL.—Notwith-
standing clauses (i) and (ii), for a 
third tier violation, the amount of 
penalty for each such violation shall 
not exceed the greater of— 
‘‘(aa) $1,000,000 for a nat-
ural person or $10,000,000 for 
any other person; 
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‘‘(bb) 3 times the gross 
amount of pecuniary gain to the 
person who committed the viola-
tion; or 
‘‘(cc) the amount of losses 
incurred by victims as a result of 
the violation. 
‘‘(II) THIRD TIER VIOLATION.— 
For the purposes of this clause, the 
term ‘third tier violation’ means a vio-
lation described in subparagraph (A) 
that— 
‘‘(aa) involved fraud, deceit, 
manipulation, or deliberate or 
reckless disregard of a regulatory 
requirement; and 
‘‘(bb) directly or indirectly— 
‘‘(AA) resulted in sub-
stantial losses to other per-
sons; 
‘‘(BB) created a signifi-
cant 
risk 
of 
substantial 
losses to other persons; or 
‘‘(CC) resulted in sub-
stantial pecuniary gain to 
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the person who committed 
the violation.’’. 
(2) MONEY PENALTIES IN ADMINISTRATIVE AC-
TIONS.—Section 21B(b) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78u–2(b)) is amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘$5,000’’ and inserting 
‘‘$10,000’’; and 
(ii) by striking ‘‘$50,000’’ and insert-
ing ‘‘$100,000’’; 
(B) in paragraph (2)— 
(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 paragraph (3) and insert-
ing the following: 
‘‘(3) THIRD TIER.— 
‘‘(A) 
IN
GENERAL.—Notwithstanding 
paragraphs (1) and (2), for a third tier act or 
omission, the amount of penalty for each such 
act or omission 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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