I 
111TH CONGRESS 
1ST SESSION H. R. 2798 
To increase securities protection coverage in the event of stolen or missing 
assets, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 10, 2009 
Mr. ARCURI (for himself and Mr. MAFFEI) introduced the following bill; which 
was referred to the Committee on Financial Services 
A BILL 
To increase securities protection coverage in the event of 
stolen or missing assets, 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 ‘‘Support Investment 
Protection for Customers Reform Act of 2009’’. 
SEC. 2. INCREASING SECURITIES INVESTOR PROTECTION 
CORPORATION CASH COVERAGE. 
(a) INCREASING THE CASH LIMIT OF PROTECTION 
FROM $100,000 TO $250,000.—Section 9 of the Securi-
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ties Investor Protection Act (15 U.S.C. 78fff–3) is amend-
ed— 
(1) in subsection (a)(1), by striking ‘‘$100,000 
for each such customer’’ and inserting ‘‘the standard 
maximum cash advance amount for each such cus-
tomer, as determined in accordance with subsection 
(d)’’; and 
(2) by adding at the end the following new sub-
sections: 
‘‘(d) 
STANDARD
MAXIMUM
CASH
ADVANCE 
AMOUNT.—For purposes of this Act, the term ‘standard 
maximum cash advance amount’ means $250,000, ad-
justed as provided under subsection (e) after March 31, 
2010. 
‘‘(e) INFLATION ADJUSTMENT.— 
‘‘(1) IN
GENERAL.—Not later than April 1, 
2010, and the first day of each 5-year period there-
after, and subject to the approval of the Commis-
sion, the Board of Directors of SIPC shall consider 
the factors set forth under paragraph (5), and, upon 
determining that an inflation adjustment is appro-
priate, shall prescribe the amount by which the 
standard maximum cash advance amount applicable 
to a customer claim shall be increased by calculating 
the product of— 
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‘‘(A) $250,000; and 
‘‘(B) the ratio of the annual value of the 
Personal Consumption Expenditures Chain- 
Type Price Index (or any successor index there-
to), published by the Department of Commerce, 
for the calendar year preceding the year in 
which the adjustment is calculated under this 
paragraph, to the published annual value of 
such index for the calendar year preceding the 
date this subparagraph takes effect. The values 
used in such calculation shall be the applicable 
values most recently published by the Depart-
ment of Commerce. 
‘‘(2) ROUNDING.—If the amount determined 
under paragraph (1) for any period is not a multiple 
of $10,000, the amount so determined shall be 
rounded down to the nearest $10,000. 
‘‘(3) PUBLICATION
AND
REPORT
TO
CON-
GRESS.—Not later than April 5 of any calendar year 
in which an adjustment is required to be calculated 
under paragraph (1) to the standard maximum cash 
advance amount— 
‘‘(A) the Commission shall publish in the 
Federal Register the standard maximum cash 
advance amount, as so calculated; and 
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‘‘(B) the Board of Directors of SIPC shall 
submit a report to the Congress containing the 
amount described in subparagraph (A). 
‘‘(4) 6-MONTH IMPLEMENTATION PERIOD.—Any 
increase in the standard maximum cash advance 
amount shall take effect on January 1 of the year 
immediately succeeding the calendar year in which 
such increase is made. 
‘‘(5) 
INFLATION
ADJUSTMENT
CONSIDER-
ATION.—In making any determination under para-
graph (1) to increase the standard maximum cash 
advance amount, the Board of Directors of SIPC 
shall consider, among other factors— 
‘‘(A) the overall state of the fund; 
‘‘(B) the economic conditions affecting 
members of SIPC; and 
‘‘(C) potential problems affecting members 
of SIPC.’’. 
(b) INCREASING SIPC LINE OF CREDIT WITH THE 
DEPARTMENT OF TREASURY.—Section 4(h) of the Securi-
ties Investor Protection Act (15 U.S.C. 78ddd(h)) is 
amended by striking out ‘‘$1,000,000,000’’ and inserting 
‘‘the lesser of $2,500,000,000 or the target amount of the 
SIPC Fund specified in the bylaws of SIPC’’. 
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‘‘(15) INSIDER.—The term ‘insider’ shall have 
the same meaning as in section 101(31) of title 11, 
United States Code.’’. 
(d) ELIGIBILITY
FOR DIRECT PAYMENT PROCE-
DURE.—Section 10(a)(4) of the Securities Investor Pro-
tection Act (15 U.S.C. 78fff–4(a)(4)) is amended by strik-
ing out ‘‘$250,000’’ and inserting ‘‘$850,000’’. 
(e) INCREASING THE FINE FOR PROHIBITED ACTS 
UNDER SIPA.—Section 14(c) of the Securities Investor 
Protection Act (15 U.S.C. 78jjj(c)) is amended by striking 
‘‘$50,000’’ 
each 
place 
it 
appears 
and 
inserting 
‘‘$250,000’’. 
(f) PENALTY FOR MISREPRESENTATION OF SIPC 
MEMBERSHIP OR PROTECTION.—Section 14 of the Securi-
ties Investor Protection Act (15 U.S.C. 78jjj) is amended 
by inserting at the end the following new subsection: 
‘‘(d) MISREPRESENTATION OF SIPC MEMBERSHIP 
OR PROTECTION.— 
‘‘(1) Any person who falsely represents by any 
means (including through the Internet or any other 
medium of mass communication), with actual knowl-
edge of the falsity of the representation and with an 
intent to deceive or cause injury to another, that 
such person, or another person, is a member of 
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SIPC or that any person or account is protected or 
is eligible for protection by SIPC, shall be— 
‘‘(A) civilly liable for any damages caused 
thereby; and 
‘‘(B) fined not more than $250,000 or im-
prisoned for not more than 5 years. 
‘‘(2) Any Internet service provider who, on or 
through a system or network controlled or operated 
by the service provider, transmits, routes, provides 
connection for, or stores any material containing any 
misrepresentation described in paragraph (1) shall 
be civilly liable for any damages caused by such mis-
representation, including damages suffered by SIPC, 
if such Internet service provider— 
‘‘(A) has actual knowledge that the mate-
rial contains a misrepresentation described in 
paragraph (1), or 
‘‘(B) in the absence of actual knowledge, is 
aware of facts or circumstances from which it 
is apparent that such material contains a mis-
representation described in paragraph (1), and 
upon obtaining such knowledge or awareness, fails to 
act expeditiously to remove, or disable access to, 
such material. 
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‘‘(3) Any court having jurisdiction of a civil ac-
tion arising under this Act may grant temporary and 
final injunctions on such terms as it deems reason-
able to prevent or restrain any violation of para-
graph (1) or (2). Any such injunction may be served 
anywhere in the United States on the person en-
joined, shall be operative throughout the United 
States, and shall be enforceable, by proceedings in 
contempt or otherwise, by any United States court 
having jurisdiction over that person. The clerk of the 
court granting the injunction shall, when requested 
by any other court in which enforcement of the in-
junction is sought, transmit promptly to the other 
court a certified copy of all papers in the case on file 
in such clerk’s office.’’. 
SEC. 4. COMMISSION STUDY ON INTERNATIONAL FINAN-
CIAL COOPERATION. 
(a) SENSE OF CONGRESS REGARDING NECESSITY OF 
AN
INTERNATIONAL
EFFORT
TO
INVESTIGATE
AND 
THWART GLOBAL INVESTMENT FRAUD.—It is the sense 
of Congress that— 
(1) international commerce and global invest-
ment have grown exponentially since World War II, 
creating a marketplace without borders; 
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(2) investors of all sizes deserve assurances that 
their financial assets are protected from theft, and 
their transactions are legitimate and accounted for; 
and 
(3) the case against Bernard L. Madoff Invest-
ment Securities, Inc. represents one of the worst and 
most devastating instances of financial fraud and de-
ception in this Nation’s history, resulting in untold 
billions of dollars in missing assets and affecting 
thousands of investors in this Nation and around the 
globe. 
(b) FEDERAL COMMISSION ON INTERNATIONAL FI-
NANCIAL FRAUD.— 
(1) ESTABLISHMENT.—There is hereby estab-
lished within the Office of Inspector General of the 
Securities and Exchange Commission a Commission 
on International Financial Fraud (hereinafter in this 
subsection referred to as the ‘‘Commission’’). 
(2) MEMBERSHIP.—The Commission shall be 
composed of the following members: 
(A) The Chairman of the Board of Direc-
tors of the Securities Investor Protection Cor-
poration. 
(B) The Chairman of the Securities Ex-
change Commission. 
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(C) The Secretary of the Treasury. 
(D) The Chairman of the Board of Gov-
ernors of the Federal Reserve System. 
(E) The Secretary of State. 
(F) The Director of the Federal Bureau of 
Investigation. 
(G) One or more additional individuals, at 
the discretion of the Inspector General of the 
Securities and Exchange Commission, where 
each such individual is the heads of a State, 
local, private, or not-for-profit entity dem-
onstrating research and academic expertise on 
issues pertaining to international investment 
and financial fraud. 
(3) DUTIES.—The Commission shall— 
(A) study potential relevance, structure, 
and long-term benefit of— 
(i) an international financial court; 
and 
(ii) establishing an international proc-
ess for the adjudication of cases of finan-
cial fraud; 
(B) establish partnerships with State, 
local, private, and not-for-profit entities dem-
onstrating research and academic expertise on 
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issues pertaining to international investment 
and financial fraud; 
(C) subject to the approval of the Inspec-
tor General of the Securities and Exchange 
Commission, facilitate communication and in-
formation sharing with international public, pri-
vate, and not-for-private entities relating to— 
(i) the creation of an international fi-
nancial court; and 
(ii) establishing an international proc-
ess for the adjudication of cases of finan-
cial fraud; and 
(D) study investigative and insurance pro-
tection frameworks for international United 
States investments. 
(4) REPORTS.—Not later than 3 months after 
the date of the enactment of this Act, and quarterly 
thereafter, the Commission shall issue a report to 
the Congress containing— 
(A) the Commission’s recommendations on 
how an international financial court could be 
structured; 
(B) the Commission’s recommendation on 
how a process for the international adjudication 
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of claims of financial fraud could be structured; 
and 
(C) any additional recommendations of the 
Commission. 
(5) TERMINATION.—The Commission shall ter-
minate on the date that is 1 year after the date of 
the enactment of this Act. 
(6) FUNDING.—The cost of funding the Com-
mission shall be divided equally among each Federal 
agency or department which is represented by a 
Member of the Commission. Notwithstanding the 
previous sentence, any State, local, private, or not- 
for-profit entity that chooses to may also contribute 
funds to pay for the cost of funding the Commission. 
Æ 
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