Source: https://www.law.cornell.edu/uscode/text/15/77h-1?qt-us_code_tabs=0
Timestamp: 2015-04-21 18:24:07
Document Index: 106955303

Matched Legal Cases: ['§ 77', '§ 77', '§ 77', '§ 8', '§ 102', '§ 1105', '§ 929', 'art 201', 'art 209']

15 U.S. Code § 77h–1 - Cease-and-desist proceedings | LII / Legal Information Institute
U.S. Code › Title 15 › Chapter 2A › Subchapter I › § 77h–1 15 U.S. Code § 77h–1 - Cease-and-desist proceedings
In general Whenever the Commission determines that the alleged violation or threatened violation specified in the notice instituting proceedings pursuant to subsection (a) of this section, or the continuation thereof, is likely to result in significant dissipation or conversion of assets, significant harm to investors, or substantial harm to the public interest, including, but not limited to, losses to the Securities Investor Protection Corporation, prior to the completion of the proceedings, the Commission may enter a temporary order requiring the respondent to cease and desist from the violation or threatened violation and to take such action to prevent the violation or threatened violation and to prevent dissipation or conversion of assets, significant harm to investors, or substantial harm to the public interest as the Commission deems appropriate pending completion of such proceeding. Such an order shall be entered only after notice and opportunity for a hearing, unless the Commission determines that notice and hearing prior to entry would be impracticable or contrary to the public interest. A temporary order shall become effective upon service upon the respondent and, unless set aside, limited, or suspended by the Commission or a court of competent jurisdiction, shall remain effective and enforceable pending the completion of the proceedings.
Applicability This subsection shall apply only to a respondent that acts, or, at the time of the alleged misconduct acted, as a broker, dealer, investment adviser, investment company, municipal securities dealer, government securities broker, government securities dealer, or transfer agent, or is, or was at the time of the alleged misconduct, an associated person of, or a person seeking to become associated with, any of the foregoing.
Exclusive review Section 77i
(a) of this title shall not apply to a temporary order entered pursuant to this section.
Authority of the Commission to prohibit persons from serving as officers or directors In any cease-and-desist proceeding under subsection (a) of this section, 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 77q
(a)(1) of this title 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 78l of this title, or that is required to file reports pursuant to section 78o
Authority to impose money penalties (1)
Grounds In any cease-and-desist proceeding under subsection (a), the Commission may impose a civil penalty on a person if the Commission finds, on the record, after notice and opportunity for hearing, that—
such person—
is or was a cause of the violation of any provision of this subchapter, or any rule or regulation thereunder; and
such penalty is in the public interest.
First tier The maximum amount of a penalty for each act or omission described in paragraph (1) shall be $7,500 for a natural person or $75,000 for any other person.
Second tier Notwithstanding subparagraph (A), the maximum amount of penalty for each such act or omission shall be $75,000 for a natural person or $375,000 for any other person, if the act or omission described in paragraph (1) involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement.
Third tier Notwithstanding subparagraphs (A) and (B), the maximum amount of penalty for each such act or omission shall be $150,000 for a natural person or $725,000 for any other person, if—
such act or omission directly or indirectly resulted in—
substantial losses or created a significant risk of substantial losses to other persons; or
substantial pecuniary gain to the person who committed the act or omission.
Evidence concerning ability to pay In any proceeding in which the Commission may impose a penalty under this section, a respondent may present evidence of the ability of the respondent to pay such penalty. The Commission may, in its discretion, consider such evidence in determining whether such penalty is in the public interest. Such evidence may relate to the extent of the ability of the respondent to continue in business and the collectability of a penalty, taking into account any other claims of the United States or third parties upon the assets of the respondent and the amount of the assets of the respondent.
(May 27, 1933, ch. 38, title I, § 8A, as added Pub. L. 101–429, title I, § 102,Oct. 15, 1990, 104 Stat. 933; amended Pub. L. 107–204, title XI, § 1105(b),July 30, 2002, 116 Stat. 809; Pub. L. 111–203, title IX, § 929P(a)(1),July 21, 2010, 124 Stat. 1862.)
2002—Subsec. (f). Pub. L. 107–204added subsec. (f).
Section effective Oct. 15, 1990, with provisions relating to civil penalties and accounting and disgorgement, see section 1(c)(1) and (2) ofPub. L. 101–429, set out in an Effective Date of 1990 Amendment note under section 77g of this title.
This is a list of parts within the Code of Federal Regulations for which this US Code section provides rulemaking authority.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.17 CFR - Commodity and Securities Exchanges17 CFR Part 201 - RULES OF PRACTICE17 CFR Part 209 - FORMS PRESCRIBED UNDER THE COMMISSION'S RULES OF PRACTICE