[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 837 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                 S. 837

 To enhance civil penalties under the Federal securities laws, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 16, 2023

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

_______________________________________________________________________

                                 A BILL


 
 To enhance civil penalties under the Federal securities laws, and for 
                            other purposes.

    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 ``Stronger Enforcement of Civil 
Penalties Act of 2023''.

SEC. 2. UPDATED CIVIL MONEY PENALTIES FOR SECURITIES LAWS VIOLATIONS.

    (a) Securities Act of 1933.--
            (1) Money penalties in administrative actions.--Section 
        8A(g)(2) of the Securities Act of 1933 (15 U.S.C. 77h-1(g)(2)) 
        is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``$7,500'' and inserting 
                        ``$10,000''; and
                            (ii) by striking ``$75,000'' and inserting 
                        ``$100,000'';
                    (B) in subparagraph (B)--
                            (i) by striking ``$75,000'' and inserting 
                        ``$100,000''; and
                            (ii) by striking ``$375,000'' and inserting 
                        ``$500,000''; and
                    (C) by striking subparagraph (C) and inserting 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 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 act or omission; or
                                    ``(III) the amount of losses 
                                incurred 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, 
                                manipulation, 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 20(d)(2) of 
        the Securities Act of 1933 (15 U.S.C. 77t(d)(2)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``$5,000'' and inserting 
                        ``$10,000''; and
                            (ii) by striking ``$50,000'' and inserting 
                        ``$100,000'';
                    (B) in subparagraph (B)--
                            (i) by striking ``$50,000'' and inserting 
                        ``$100,000''; and
                            (ii) by striking ``$250,000'' and inserting 
                        ``$500,000''; and
                    (C) by striking subparagraph (C) and inserting 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
                                    ``(III) the amount of losses 
                                incurred 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, 
                                manipulation, 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.''.
    (b) Securities Exchange Act of 1934.--
            (1) Money penalties in civil actions.--Section 21(d)(3)(B) 
        of the Securities Exchange Act of 1934 (15 U.S.C. 78u(d)(3)(B)) 
        is amended--
                    (A) in clause (i)--
                            (i) by striking ``$5,000'' and inserting 
                        ``$10,000''; and
                            (ii) by striking ``$50,000'' and inserting 
                        ``$100,000'';
                    (B) in clause (ii)--
                            (i) by striking ``$50,000'' and inserting 
                        ``$100,000''; and
                            (ii) by striking ``$250,000'' and inserting 
                        ``$500,000''; and
                    (C) by striking clause (iii) and inserting the 
                following:
                            ``(iii) Third tier.--
                                    ``(I) In general.--Notwithstanding 
                                clauses (i) and (ii), for a third tier 
                                violation, the amount of penalty for 
                                each such violation shall not exceed 
                                the greater of--
                                            ``(aa) $1,000,000 for a 
                                        natural person or $10,000,000 
                                        for any other person;
                                            ``(bb) 3 times the gross 
                                        amount of pecuniary gain to the 
                                        person who committed the 
                                        violation; or
                                            ``(cc) the amount of losses 
                                        incurred by victims as a result 
                                        of the violation.
                                    ``(II) Third tier violation.--For 
                                the purposes of this clause, the term 
                                `third tier violation' means a 
                                violation described in subparagraph (A) 
                                that--
                                            ``(aa) involved fraud, 
                                        deceit, manipulation, or 
                                        deliberate or reckless 
                                        disregard of a regulatory 
                                        requirement; and
                                            ``(bb) 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.''.

            (2) Money penalties in administrative actions.--Section 
        21B(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-
        2(b)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``$5,000'' and inserting 
                        ``$10,000''; and
                            (ii) by striking ``$50,000'' and inserting 
                        ``$100,000'';
                    (B) in paragraph (2)--
                            (i) by striking ``$50,000'' and inserting 
                        ``$100,000''; and
                            (ii) by striking ``$250,000'' and inserting 
                        ``$500,000''; and
                    (C) by striking paragraph (3) and inserting the 
                following:
            ``(3) Third tier.--
                    ``(A) In general.--Notwithstanding paragraphs (1) 
                and (2), for a third tier act or omission, the amount 
                of penalty for each such act or omission 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 
                        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, manipulation, 
                        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 
                                pecuniary gain to the person who 
                                committed the act or omission.''.
    (c) Investment Company Act of 1940.--
            (1) Money penalties in administrative actions.--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)--
                            (i) by striking ``$5,000'' and inserting 
                        ``$10,000''; and
                            (ii) by striking ``$50,000'' and inserting 
                        ``$100,000'';
                    (B) in subparagraph (B)--
                            (i) by striking ``$50,000'' and inserting 
                        ``$100,000''; and
                            (ii) by striking ``$250,000'' and inserting 
                        ``$500,000''; and
                    (C) by striking subparagraph (C) and inserting 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 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 act or omission; or
                                    ``(III) the amount of losses 
                                incurred 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, 
                                manipulation, 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)--
                            (i) by striking ``$5,000'' and inserting 
                        ``$10,000''; and
                            (ii) by striking ``$50,000'' and inserting 
                        ``$100,000'';
                    (B) in subparagraph (B)--
                            (i) by striking ``$50,000'' and inserting 
                        ``$100,000''; and
                            (ii) by striking ``$250,000'' and inserting 
                        ``$500,000''; and
                    (C) by striking subparagraph (C) and inserting 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
                                    ``(III) the amount of losses 
                                incurred 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, 
                                manipulation, 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 actions.--Section 
        203(i)(2) of the Investment Advisers Act of 1940 (15 U.S.C. 
        80b-3(i)(2)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``$5,000'' and inserting 
                        ``$10,000''; and
                            (ii) by striking ``$50,000'' and inserting 
                        ``$100,000'';
                    (B) in subparagraph (B)--
                            (i) by striking ``$50,000'' and inserting 
                        ``$100,000''; and
                            (ii) by striking ``$250,000'' and inserting 
                        ``$500,000''; and
                    (C) by striking subparagraph (C) and inserting 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 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 act or omission; or
                                    ``(III) the amount of losses 
                                incurred 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, 
                                manipulation, 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)--
                            (i) by striking ``$5,000'' and inserting 
                        ``$10,000''; and
                            (ii) by striking ``$50,000'' and inserting 
                        ``$100,000'';
                    (B) in subparagraph (B)--
                            (i) by striking ``$50,000'' and inserting 
                        ``$100,000''; and
                            (ii) by striking ``$250,000'' and inserting 
                        ``$500,000''; and
                    (C) by striking subparagraph (C) and inserting 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
                                    ``(III) the amount of losses 
                                incurred 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, 
                                manipulation, 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. 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 became 
                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 offenses.--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 became 
                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, 
                equitable, or administrative relief in any Commission 
                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 paragraphs (1), (2), 
        and (3), the maximum amount of penalty for each such act or 
        omission shall be 3 times the otherwise applicable amount in 
        such paragraphs 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 imposing monetary, equitable, or 
        administrative relief in any Commission action alleging fraud 
        by that person.''.
    (c) Investment Company Act of 1940.--
            (1) Ineligibility of certain underwriters and affiliates.--
        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) 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 became 
                subject to a judgment or order imposing monetary, 
                equitable, or administrative relief in any Commission 
                action alleging fraud by that person.''.
            (2) Enforcement.--Section 42(e)(2) of the Investment 
        Company Act of 1940 (15 U.S.C. 80a-41(e)(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 became 
                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 Investment 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 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 became 
                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 became 
                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--
            (1) in paragraph (1), by inserting after ``the rules or 
        regulations thereunder,'' the following: ``a Federal court 
        injunction or a bar obtained or entered by the Commission under 
        this title,''; and
            (2) by striking paragraph (4) and inserting the following:
            ``(4) Special provisions relating to a violation of an 
        injunction or certain orders.--
                    ``(A) In general.--Each separate violation of an 
                injunction or order described in subparagraph (B) 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.
                    ``(B) Injunctions and orders.--Subparagraph (A) 
                shall apply with respect to any action to enforce--
                            ``(i) a Federal court injunction obtained 
                        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 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 entered by the Commission under 
        this title,''; and
            (2) by striking subparagraph (D) and inserting the 
        following:
            ``(D) Special provisions relating to a violation 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.
                    ``(ii) Injunctions and orders.--Clause (i) shall 
                apply with respect to an action to enforce--
                            ``(I) a Federal court injunction obtained 
                        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 entered by the Commission under 
        this title,''; and
            (2) by striking paragraph (4) and inserting the following:
            ``(4) Special provisions relating to a violation of an 
        injunction or certain orders.--
                    ``(A) In general.--Each separate violation of an 
                injunction or order described in subparagraph (B) 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.
                    ``(B) Injunctions and orders.--Subparagraph (A) 
                shall apply with respect to any action to enforce--
                            ``(i) a Federal court injunction obtained 
                        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 9(f).''.
    (d) Investment Advisers Act of 1940.--Section 209(e) of the 
Investment Advisers Act of 1940 (15 U.S.C. 80b-9(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 entered by the Commission under 
        this title,''; and
            (2) by striking paragraph (4) and inserting the following:
            ``(4) Special provisions relating to a violation of an 
        injunction or certain orders.--
                    ``(A) In general.--Each separate violation of an 
                injunction or order described in subparagraph (B) 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.
                    ``(B) Injunctions and orders.--Subparagraph (A) 
                shall apply with respect to any action to enforce--
                            ``(i) a Federal court injunction obtained 
                        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 203(k).''.
                                 <all>