‘‘(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)— 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD 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 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(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.’’. 
(2) MONEY
PENALTIES
IN
CIVIL
ACTIONS.— 
Section 42(e)(2) of the Investment Company Act of 
1940 (15 U.S.C. 80a–41(e)(2)) is amended— 
(A) in subparagraph (A)— 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD 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 violation, the amount of penalty for 
each such violation shall not exceed 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 violation; or 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(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.’’. 
(d) INVESTMENT ADVISERS ACT OF 1940.— 
(1) MONEY PENALTIES IN ADMINISTRATIVE AC-
TIONS.—Section 203(i)(2) of the Investment Advis-
ers Act of 1940 (15 U.S.C. 80b–3(i)(2)) is amend-
ed— 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
(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 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 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(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.’’. 
(2) MONEY
PENALTIES
IN
CIVIL
ACTIONS.— 
Section 209(e)(2) of the Investment Advisers Act of 
1940 (15 U.S.C. 80b–9(e)(2)) is amended— 
(A) in subparagraph (A)— 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD 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 violation, the amount of penalty for 
each such violation shall not exceed 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 violation; or 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(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.’’. 
SEC. 3. PENALTIES FOR RECIDIVISTS. 
(a) SECURITIES ACT OF 1933.— 
(1) CEASE-AND-DESIST PROCEEDINGS.—Section 
8A(g)(2) of the Securities Act of 1933 (15 U.S.C. 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
77h–1(g)(2)) is amended by adding at the end the 
following: 
‘‘(D) 
FOURTH
TIER.—Notwithstanding 
subparagraphs (A), (B), and (C), the maximum 
amount of penalty for each such act or omission 
shall be 3 times the otherwise applicable 
amount in such subparagraphs if, within the 5- 
year period preceding such act or omission, the 
person who committed the act or omission was 
criminally convicted for securities fraud or be-
came subject to a judgment or order imposing 
monetary, equitable, or administrative relief in 
any Commission action alleging fraud by that 
person.’’. 
(2) INJUNCTIONS
AND
PROSECUTION
OF
OF-
FENSES.—Section 20(d)(2) of the Securities Act of 
1933 (15 U.S.C. 77t(d)(2)) is amended by adding at 
the end the following: 
‘‘(D) 
FOURTH
TIER.—Notwithstanding 
subparagraphs (A), (B), and (C), the maximum 
amount of penalty for each such violation shall 
be 3 times the otherwise applicable amount in 
such subparagraphs if, within the 5-year period 
preceding such violation, the defendant was 
criminally convicted for securities fraud or be-
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
came subject to a judgment or order imposing 
monetary, equitable, or administrative relief in 
any Commission action alleging fraud by that 
defendant.’’. 
(b) SECURITIES EXCHANGE ACT OF 1934.— 
(1) CIVIL ACTIONS.—Section 21(d)(3)(B) of the 
Securities Exchange Act of 1934 (15 U.S.C. 
78u(d)(3)(B)) is amended by adding at the end the 
following: 
‘‘(iv) 
FOURTH
TIER.—Notwithstanding 
clauses (i), (ii), and (iii), the maximum amount 
of penalty for each such violation shall be 3 
times the otherwise applicable amount in such 
clauses if, within the 5-year period preceding 
such violation, the defendant was criminally 
convicted for securities fraud or became subject 
to a judgment or order imposing monetary, eq-
uitable, or administrative relief in any Commis-
sion action alleging fraud by that defendant.’’. 
(2) ADMINISTRATIVE
PROCEEDINGS.—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) FOURTH
TIER.—Notwithstanding para-
graphs (1), (2), and (3), the maximum amount of 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
penalty for each such act or omission shall be 3 
times the otherwise applicable amount in such para-
graphs if, within the 5-year period preceding such 
act or omission, the person who committed the act 
or omission was criminally convicted for securities 
fraud or became subject to a judgment or order im-
posing monetary, equitable, or administrative relief 
in any Commission action alleging fraud by that per-
son.’’. 
(c) INVESTMENT COMPANY ACT OF 1940.— 
(1) INELIGIBILITY OF CERTAIN UNDERWRITERS 
AND
AFFILIATES.—Section 9(d)(2) of the Invest-
ment Company Act of 1940 (15 U.S.C. 80a–9(d)(2)) 
is amended by adding at the end the following: 
‘‘(D) 
FOURTH
TIER.—Notwithstanding 
subparagraphs (A), (B), and (C), the maximum 
amount of penalty for each such act or omission 
shall be 3 times the otherwise applicable 
amount in such subparagraphs if, within the 5- 
year period preceding such act or omission, the 
person who committed the act or omission was 
criminally convicted for securities fraud or be-
came subject to a judgment or order imposing 
monetary, equitable, or administrative relief in 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
any Commission action alleging fraud by that 
person.’’. 
(2) ENFORCEMENT
OF
CERTAIN
ACTIONS.— 
Section 42(e)(2) of the Investment Company Act of 
1940 (15 U.S.C. 80a–41(e)(2)) is amended by add-
ing at the end the following: 
‘‘(D) 
FOURTH
TIER.—Notwithstanding 
subparagraphs (A), (B), and (C), the maximum 
amount of penalty for each such violation shall 
be 3 times the otherwise applicable amount in 
such subparagraphs if, within the 5-year period 
preceding such violation, the defendant was 
criminally convicted for securities fraud or be-
came subject to a judgment or order imposing 
monetary, equitable, or administrative relief in 
any Commission action alleging fraud by that 
defendant.’’. 
(d) INVESTMENT ADVISERS ACT OF 1940.—The In-
vestment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) 
is amended— 
(1) in section 203(i)(2) (15 U.S.C. 80b– 
3(i)(2)), by adding at the end the following: 
‘‘(D) 
FOURTH
TIER.—Notwithstanding 
subparagraphs (A), (B), and (C), the maximum 
amount of penalty for each such act or omission 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
shall be 3 times the otherwise applicable 
amount in such subparagraphs if, within the 5- 
year period preceding such act or omission, the 
person who committed the act or omission was 
criminally convicted for securities fraud or be-
came subject to a judgment or order imposing 
monetary, equitable, or administrative relief in 
any Commission action alleging fraud by that 
person.’’; and 
(2) in section 209(e)(2) (15 U.S.C. 80b– 
9(e)(2)) by adding at the end the following: 
‘‘(D) 
FOURTH
TIER.—Notwithstanding 
subparagraphs (A), (B), and (C), the maximum 
amount of penalty for each such violation shall 
be 3 times the otherwise applicable amount in 
such subparagraphs if, within the 5-year period 
preceding such violation, the defendant was 
criminally convicted for securities fraud or be-
came subject to a judgment or order imposing 
monetary, equitable, or administrative relief in 
any Commission action alleging fraud by that 
defendant.’’. 
SEC. 4. VIOLATIONS OF INJUNCTIONS AND BARS. 
(a) SECURITIES ACT OF 1933.—Section 20(d) of the 
Securities Act of 1933 (15 U.S.C. 77t(d)) is amended— 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
(1) in paragraph (1), by inserting after ‘‘the 
rules or regulations thereunder,’’ the following: ‘‘a 
Federal court injunction or a bar obtained or en-
tered by the Commission under this title,’’; and 
(2) by striking paragraph (4) and inserting the 
following: 
‘‘(4) SPECIAL PROVISIONS RELATING TO A VIO-
LATION OF AN INJUNCTION OR CERTAIN ORDERS.— 
‘‘(A) IN GENERAL.—Each separate viola-
tion of an injunction or order described in sub-
paragraph (B) shall be a separate offense, ex-
cept that in the case of a violation through a 
continuing failure to comply with such injunc-
tion or order, each day of the failure to comply 
with the injunction or order shall be deemed a 
separate offense. 
‘‘(B) INJUNCTIONS
AND
ORDERS.—Sub-
paragraph (A) shall apply with respect to any 
action to enforce— 
‘‘(i) a Federal court injunction ob-
tained pursuant to this title; 
‘‘(ii) an order entered or obtained by 
the Commission pursuant to this title that 
bars, suspends, places limitations on the 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
activities or functions of, or prohibits the 
activities of a person; or 
‘‘(iii) a cease-and-desist order entered 
by the Commission pursuant to section 
8A.’’. 
(b) SECURITIES EXCHANGE ACT OF 1934.—Section 
21(d)(3) of the Securities Exchange Act of 1934 (15 
U.S.C. 78u(d)(3)) is amended— 
(1) in subparagraph (A), by inserting after ‘‘the 
rules or regulations thereunder,’’ the following: ‘‘a 
Federal court injunction or a bar obtained or en-
tered by the Commission under this title,’’; and 
(2) by striking subparagraph (D) and inserting 
the following: 
‘‘(D) SPECIAL PROVISIONS RELATING TO A VIO-
LATION OF AN INJUNCTION OR CERTAIN ORDERS.— 
‘‘(i) IN GENERAL.—Each separate violation 
of an injunction or order described in clause (ii) 
shall be a separate offense, except that in the 
case of a violation through a continuing failure 
to comply with such injunction or order, each 
day of the failure to comply with the injunction 
or order shall be deemed a separate offense. 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(ii) INJUNCTIONS AND ORDERS.—Clause 
(i) shall apply with respect to an action to en-
force— 
‘‘(I) a Federal court injunction ob-
tained pursuant to this title; 
‘‘(II) an order entered or obtained by 
the Commission pursuant to this title that 
bars, suspends, places limitations on the 
activities or functions of, or prohibits the 
activities of a person; or 
‘‘(III) a cease-and-desist order entered 
by the Commission pursuant to section 
21C.’’. 
(c) INVESTMENT COMPANY ACT OF 1940.—Section 
42(e) of the Investment Company Act of 1940 (15 U.S.C. 
80a–41(e)) is amended— 
(1) in paragraph (1), by inserting after ‘‘the 
rules or regulations thereunder,’’ the following: ‘‘a 
Federal court injunction or a bar obtained or en-
tered by the Commission under this title,’’; and 
(2) by striking paragraph (4) and inserting the 
following: 
‘‘(4) SPECIAL PROVISIONS RELATING TO A VIO-
LATION OF AN INJUNCTION OR CERTAIN ORDERS.— 
VerDate Sep 11 2014 
20:41 Sep 10, 2024
Jkt 049200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H9451.IH
H9451
ssavage on LAPJG3WLY3PROD with BILLS