II 110th CONGRESS 2d Session S. 3219 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.

1.

Short title

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

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.).

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. .

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. .

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. .

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. .

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.