[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3219 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 3219

  To enhance penalties for violations of securities protections that 
                       involve targeting seniors.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 27, 2008

  Mr. Casey (for himself and Mr. Kohl) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To enhance penalties for violations of securities protections that 
                       involve targeting seniors.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senior Investor Protections 
Enhancement Act of 2008''.

SEC. 2. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Senior.--The term ``senior'' means an individual who is 
        62 years of age or older.
            (2) Securities laws.--The term ``securities laws'' means 
        the Securities Act of 1933 (15 U.S.C. 77b et seq.), the 
        Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), the 
        Investment Company Act of 1940 (15 U.S.C. 80a et seq.), and the 
        Investment Advisers Act of 1940 (15 U.S.C. 80b et seq.).

SEC. 3. ENHANCED PENALTIES FOR VIOLATIONS OF SECURITIES ACT OF 1933.

    (a) Civil Actions.--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) Special rule for seniors.--Notwithstanding 
                subparagraphs (A), (B), and (C), the amount of penalty 
                for each violation described in paragraph (1) that may 
                be imposed under subparagraph (A), (B), or (C) may be 
                increased by not more than $50,000, if the violation is 
                primarily directed toward, targets, or is committed 
                against an individual who, at the time of the 
                violation, is 62 years of age or older.''.
    (b) Other Violations.--Section 24 of the Securities Act of 1933 (15 
U.S.C. 77x) is amended--
            (1) by inserting ``(a) In General.--'' before ``Any 
        person''; and
            (2) by adding at the end the following:
    ``(b) Special Rule for Seniors.--Notwithstanding subsection (a), 
the amount of a fine that may be imposed under subsection (a) may be 
increased by not more than $50,000, if the violation is primarily 
directed toward, targets, or is committed against an individual who, at 
the time of the violation, is 62 years of age or older.''.

SEC. 4. ENHANCED PENALTIES FOR VIOLATIONS OF SECURITIES ACT OF 1934.

    (a) 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) Special rule for seniors.--
                        Notwithstanding clauses (i), (ii), and (iii), 
                        the amount of penalty for each violation 
                        described in subparagraph (A) that may be 
                        imposed under clause (i), (ii), or (iii) may be 
                        increased by not more than $50,000, if the 
                        violation is primarily directed toward, 
                        targets, or is committed against an individual 
                        who, at the time of the violation, is 62 years 
                        of age or older.''.
    (b) Willful Violations.--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) Special rule for seniors.--Notwithstanding paragraphs 
        (1), (2), and (3), the amount of penalty for each violation 
        described in subsection (a) that may be imposed under paragraph 
        (1), (2), or (3) may be increased by not more than $50,000, if 
        the violation is primarily directed toward, targets, or is 
        committed against an individual who, at the time of the 
        violation, is 62 years of age or older.''.
    (c) Other Violations.--Section 32 of the Securities Exchange Act of 
1934 (15 U.S.C. 78ff) is amended by adding at the end the following:
    ``(d) Special Rule for Seniors.--Notwithstanding subsection (a), 
the amount of fine that may be imposed under subsection (a) may be 
increased by not more than $50,000, if the violation is primarily 
directed toward, targets, or is committed against an individual who, at 
the time of the violation, is 62 years of age or older.''.

SEC. 5. ENHANCED PENALTIES FOR VIOLATIONS OF INVESTMENT COMPANY ACT OF 
              1940.

    (a) Willful Violations.--Section 9(d)(2) of the Investment Company 
Act of 1940 (15 U.S.C. 80a-9(d)(2)) is amended by adding at the end the 
following:
                    ``(D) Special rule for seniors.--Notwithstanding 
                subparagraphs (A), (B), and (C), the amount of penalty 
                for each violation described in paragraph (1) that may 
                be imposed under subparagraph (A), (B), or (C) may be 
                increased by not more than $50,000, if the violation is 
                primarily directed toward, targets, or is committed 
                against an individual who, at the time of the 
                violation, is 62 years of age or older.''.
    (b) Civil Actions.--Section 42(e)(2) of the Investment Company Act 
of 1940 (15 U.S.C. 80a-41(l)(2)) is amended by adding at the end the 
following:
                    ``(D) Special rule for seniors.--Notwithstanding 
                subparagraphs (A), (B), and (C), the amount of penalty 
                for each violation described in paragraph (1) that may 
                be imposed under subparagraph (A), (B), or (C) may be 
                increased by not more than $50,000, if the violation is 
                primarily directed toward, targets, or is committed 
                against an individual who, at the time of the 
                violation, is 62 years of age or older.''.
    (c) Other Violations.--Section 49 of the Investment Company Act of 
1940 (15 U.S.C. 80a-48) is amended--
            (1) by inserting ``(a) In General.--'' before ``Any 
        person''; and
            (2) by adding at the end the following:
    ``(b) Special Rule for Seniors.--Notwithstanding subsection (a), 
the amount of fine that may be imposed under subsection (a) may be 
increased by not more than $50,000, if the violation is primarily 
directed toward, targets, or is committed against an individual who, at 
the time of the violation, is 62 years of age or older.''.

SEC. 6. ENHANCED PENALTIES FOR VIOLATIONS OF INVESTMENT ADVISERS ACT OF 
              1940.

    (a) Willful Violations.--Section 203(i)(2) of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b-3(i)(2)) is amended by adding at 
the end the following:
                    ``(D) Special rule for seniors.--Notwithstanding 
                subparagraphs (A), (B), and (C), the amount of penalty 
                for each violation described in paragraph (1) that may 
                be imposed under subparagraph (A), (B), or (C) may be 
                increased by not more than $50,000, if the violation is 
                primarily directed toward, targets, or is committed 
                against an individual who, at the time of the 
                violation, is 62 years of age or older.''.
    (b) Civil Actions.--Section 209(e)(2) of the Investment Advisers 
Act of 1940 (15 U.S.C. 80b-9(e)(2)) is amended by adding at the end the 
following:
                    ``(D) Special rule for seniors.--Notwithstanding 
                subparagraphs (A), (B), and (C), the amount of penalty 
                for each violation under this title that may be imposed 
                under subparagraph (A), (B), or (C) may be increased by 
                not more than $50,000, if the violation is primarily 
                directed toward, targets, or is committed against an 
                individual who, at the time of the violation, is 62 
                years of age or older.''.
    (c) Other Violations.--Section 217 of the Investment Advisers Act 
of 1940 (15 U.S.C. 80b-17) is amended--
            (1) by inserting ``(a) In General.--'' before ``Any 
        person''; and
            (2) by adding at the end the following:
    ``(b) Special Rule for Seniors.--Notwithstanding subsection (a), 
the amount of fine that may be imposed under subsection (a) may be 
increased by not more than $50,000, if the violation is primarily 
directed toward, targets, or is committed against an individual who, at 
the time of the violation, is 62 years of age or older.''.

SEC. 7. DIRECTIVE TO THE UNITED STATES SENTENCING COMMISSION.

    (a) In General.--Pursuant to its authority under section 994(p) of 
title 28, United States Code, and in accordance with this section, the 
United States Sentencing Commission shall review and amend the Federal 
sentencing guidelines and policy statements to ensure that the 
guideline offense levels and enhancements appropriately punish 
violations of the securities laws against seniors.
    (b) Requirements.--In carrying out this section, the United States 
Sentencing Commission shall--
            (1) ensure that section 2B1.1 and 2C1.1 of the Federal 
        sentencing guidelines (and any successors thereto) apply to and 
        punish offenses in which the victim of a violation of the 
        securities laws is a senior;
            (2) ensure reasonable consistency with other relevant 
        directives, provisions of the Federal sentencing guidelines, 
        and statutory provisions;
            (3) make any necessary and conforming changes to the 
        Federal sentencing guidelines, in accordance with the 
        amendments made by this Act; and
            (4) ensure that the Federal sentencing guidelines 
        adequately meet the purposes of sentencing set forth in section 
        3553(a)(2) of title 18, United States Code.
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