H. R. 3763—65
any additional policy recommendations the Sentencing Commis-
sion may have for combating offenses described in paragraph
(1).
(b) CONSIDERATIONS IN REVIEW.—In carrying out this section,
the Sentencing Commission is requested to—
(1) ensure that the sentencing guidelines and policy state-
ments reflect the serious nature of securities, pension, and
accounting fraud and the need for aggressive and appropriate
law enforcement action to prevent such offenses;
(2) assure reasonable consistency with other relevant direc-
tives and with other guidelines;
(3) account for any aggravating or mitigating circumstances
that might justify exceptions, including circumstances for which
the sentencing guidelines currently provide sentencing enhance-
ments;
(4) ensure that guideline offense levels and enhancements
for an obstruction of justice offense are adequate in cases where
documents or other physical evidence are actually destroyed
or fabricated;
(5) ensure that the guideline offense levels and enhance-
ments under United States Sentencing Guideline 2B1.1 (as
in effect on the date of enactment of this Act) are sufficient
for a fraud offense when the number of victims adversely
involved is significantly greater than 50;
(6) make any necessary conforming changes to the sen-
tencing guidelines; and
(7) assure that the guidelines adequately meet the purposes
of sentencing as set forth in section 3553 (a)(2) of title 18,
United States Code.
(c) EMERGENCY AUTHORITY AND DEADLINE FOR COMMISSION
ACTION.—The United States Sentencing Commission is requested
to promulgate the guidelines or amendments provided for under
this section as soon as practicable, and in any event not later
than the 180 days after the date of enactment of this Act, in
accordance with the procedures sent forth in section 21(a) of the
Sentencing Reform Act of 1987, as though the authority under
that Act had not expired.
SEC. 1105. AUTHORITY OF THE COMMISSION TO PROHIBIT PERSONS
FROM SERVING AS OFFICERS OR DIRECTORS.
(a) SECURITIES EXCHANGE ACT OF 1934.—Section 21C of the
Securities Exchange Act of 1934 (15 U.S.C. 78u–3) is amended
by adding at the end the following:
‘‘(f) AUTHORITY OF THE COMMISSION TO PROHIBIT PERSONS FROM
SERVING AS OFFICERS OR DIRECTORS.—In any cease-and-desist pro-
ceeding under subsection (a), the Commission may issue an order
to prohibit, conditionally or unconditionally, and permanently or
for such period of time as it shall determine, any person who
has violated section 10(b) or the rules or regulations thereunder,
from acting as an officer or director of any issuer that has a
class of securities registered pursuant to section 12, or that is
required to file reports pursuant to section 15(d), if the conduct
of that person demonstrates unfitness to serve as an officer or
director of any such issuer.’’.
(b) SECURITIES ACT
OF 1933.—Section 8A of the Securities
Act of 1933 (15 U.S.C. 77h–1) is amended by adding at the end
of the following:
H. R. 3763—66
‘‘(f) AUTHORITY OF THE COMMISSION TO PROHIBIT PERSONS FROM
SERVING AS OFFICERS OR DIRECTORS.—In any cease-and-desist pro-
ceeding under subsection (a), the Commission may issue an order
to prohibit, conditionally or unconditionally, and permanently or
for such period of time as it shall determine, any person who
has violated section 17(a)(1) or the rules or regulations thereunder,
from acting as an officer or director of any issuer that has a
class of securities registered pursuant to section 12 of the Securities
Exchange Act of 1934, or that is required to file reports pursuant
to section 15(d) of that Act, if the conduct of that person dem-
onstrates unfitness to serve as an officer or director of any such
issuer.’’.
SEC. 1106. INCREASED CRIMINAL PENALTIES UNDER SECURITIES
EXCHANGE ACT OF 1934.
Section 32(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78ff(a)) is amended—
(1) by striking ‘‘$1,000,000, or imprisoned not more than
10 years’’ and inserting ‘‘$5,000,000, or imprisoned not more
than 20 years’’; and
(2) by striking ‘‘$2,500,000’’ and inserting ‘‘$25,000,000’’.
SEC. 1107. RETALIATION AGAINST INFORMANTS.
(a) IN GENERAL.—Section 1513 of title 18, United States Code,
is amended by adding at the end the following:
‘‘(e) Whoever knowingly, with the intent to retaliate, takes
any action harmful to any person, including interference with the
lawful employment or livelihood of any person, for providing to
a law enforcement officer any truthful information relating to the
commission or possible commission of any Federal offense, shall
be fined under this title or imprisoned not more than 10 years,
or both.’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.