‘‘(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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‘‘(ii) 3 times the gross amount of pe-
cuniary gain to the person who committed 
the act or omission; or 
‘‘(iii) the amount of losses incurred by 
victims as a result of the act or omission. 
‘‘(B) THIRD TIER ACT OR OMISSION.—For 
the purposes of this paragraph, the term ‘third 
tier act or omission’ means an act or omission 
described in paragraph (1) that— 
‘‘(i) involved fraud, deceit, manipula-
tion, or deliberate or reckless disregard of 
a regulatory requirement; and 
‘‘(ii) directly or indirectly— 
‘‘(I) resulted in substantial losses 
to other persons; 
‘‘(II) created a significant risk of 
substantial losses to other persons; or 
‘‘(III) resulted in substantial pe-
cuniary gain to the person who com-
mitted the act or omission.’’. 
(c) INVESTMENT COMPANY ACT OF 1940.— 
(1) MONEY PENALTIES IN ADMINISTRATIVE AC-
TIONS.—Section 9(d)(2) of the Investment Company 
Act of 1940 (15 U.S.C. 80a–9(d)(2)) is amended— 
(A) in subparagraph (A)— 
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pamtmann on DSKBFK8HB2PROD with BILLS
(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 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; 
‘‘(II) 3 times the gross amount of 
pecuniary gain to the person who 
committed the act or omission; or 
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