[Congressional Record Volume 158, Number 110 (Monday, July 23, 2012)]
[Senate]
[Pages S5259-S5262]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED (for himself and Mr. Grassley):
  S. 3416. A bill to enhance civil penalties under the Federal 
securities laws, and for other purposes; to the Committee on Banking, 
Housing, and Urban Affairs.
  Mr. REED. Today I am introducing bipartisan legislation to address a 
matter that I explored as chairman of the Banking Subcommittee on 
Securities, Insurance, and Investment. During a series of hearings, it 
became increasingly clear to me that in order to protect taxpayers and 
investors, we need tougher anti-fraud laws and better oversight of Wall 
Street. Some of these institutions that are ``too big to fail'' have 
also become ``too big to care.'' We need to end the cycle of misconduct 
where such institutions can look at the bottom line and see they can 
break the law, get caught, pay a nominal fine, and still profit.
  At a Securities and Exchange Commission, SEC, oversight hearing I 
held in November 2011, I asked Robert Khuzami, director of the Division 
of Enforcement at the SEC, why a recently proposed settlement with 
Citigroup had been thrown out by a Federal judge in the Southern 
District of New York, who believed it to be egregiously low. Mr. 
Khuzami replied that the SEC's ability to assess penalties was actually 
limited by the statute. In follow-up questions, I directly asked if 
Congress should consider raising these limits, especially in cases 
involving repeated offenders. I subsequently received a letter from SEC 
Chairman Schapiro, and written answers from Mr. Khuzami, supporting the 
need to raise the limits and make other improvements to the SEC civil 
enforcement statute.
  As a result, I am introducing today with my colleague, Senator Chuck 
Grassley, the Stronger Enforcement of Civil Penalties Act of 2012 or 
the SEC Penalties Act. This bill will strengthen the ability of the SEC 
to crack down on violations of securities laws by updating its civil 
penalties statute. This legislation will ensure that the punishment 
better fits the crime by increasing the statutory limits on civil 
monetary penalties, directly linking the size of these penalties to the 
scope of harm and associated investor losses, and substantially raising 
the financial stakes for repeat offenders of our nation's securities 
laws.
  Our bill will increase the per violation cap for the most egregious 
securities laws violations to $1 million per offense for individuals 
and $10 million per offense for entities. This will help ensure that 
the SEC's most severe, or ``tier three,'' penalties will help deter 
people from engaging in the most serious offenses, rather than have 
such wrongdoing be viewed as just the cost of doing business. Under 
existing law, the SEC can only penalize individual securities law 
violators a maximum of $150,000 per offense and institutions $725,000 
per offense.
  Our bill will also toughen penalties by allowing penalties equal to 
three times the economic gain of the violator. It also provides a new 
calculation method that includes the amount of associated investor 
losses as part of the penalty determination. This should allow the SEC 
to address situations where the actual economic gain to the violator is 
relatively small compared to the extent of the wrongdoing or the harm 
caused to investors.
  In the recent case involving Citigroup, existing law did not even 
entitle the SEC to recover the amount actually lost by investors. 
Estimated investors losses were about $700 million, but the SEC 
proposed to settle the case with Citigroup for only $285 million. This 
amount was what was estimated to be close to the total monetary 
recovery that the SEC itself could have obtained if it had gone to 
trial. Under our bill, this amount could have been much larger, and 
would have taken into account the economic gain to Citigroup, in 
addition to investor losses.
  Recent reports have highlighted the level of repeat offenses that 
have occurred on Wall Street and gone unchecked. The SEC Penalties Act 
includes two statutory changes that would substantially improve the 
ability of the SEC's enforcement program to ratchet up penalties as 
recidivism occurs.
  One would allow the SEC to triple the applicable penalty cap for 
recidivists who, within the preceding five years, have been criminally 
convicted of securities fraud or been the subject of a judgment or 
order imposing monetary, equitable, or administrative relief in any 
action alleging SEC fraud.
  The other would allow the SEC to seek a civil penalty if an 
individual or entity has violated an existing federal court injunction 
or bar imposed by the SEC. Many believe this approach would be more 
efficient, effective, and flexible than the current civil contempt 
remedy.
  Finally, under the SEC Penalties Act, the penalty relief available in 
administrative proceedings will be the same as it is in district court. 
In essence, the SEC will be able to assess these types of penalties in-
house, and not just obtain them in federal court.
  Given the JP Morgan trading scandal, issues arising from the Facebook 
IPO, and the manipulation of LIBOR, it

[[Page S5260]]

is clear much still needs to be done to improve transparency and 
restore confidence in our financial system. The nearly one-half of all 
U.S. households that own securities deserve a strong cop on the beat 
that has the tools it needs to go after fraudsters and the difficult 
cases arising from our increasingly complex financial markets. Our 
economy's success depends in no small part on restoring confidence in 
our capital markets.
  The SEC Penalties Act will help by giving the SEC more tools to 
demand meaningful accountability from Wall Street. It will enhance the 
SEC's ability to protect investors and crack down on fraud and I urge 
my colleagues to cosponsor and join us in supporting this important 
legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3416

       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 2012''.

     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 amending subparagraph (C) to read as follows:
       ``(C) Third tier.--Notwithstanding subparagraphs (A) and 
     (B), 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, if--

       ``(I) the act or omission described in paragraph (1) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(II) such act or omission directly or indirectly resulted 
     in--

       ``(aa) substantial losses or created a significant risk of 
     substantial losses to other persons; or
       ``(bb) 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) in subparagraph (C), by striking ``greater of (i) 
     $100,000 for a natural person or $500,000 for any other 
     person, or (ii) the gross amount of pecuniary gain to such 
     defendant as a result of the violation'' and inserting the 
     following: ``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 such 
     defendant as a result of the violation; or
       ``(iii) the amount of losses incurred by victims as a 
     result of 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) in clause (iii), by striking ``greater of (I) $100,000 
     for a natural person or $500,000 for any other person, or 
     (II) the gross amount of pecuniary gain to such defendant as 
     a result of the violation'' and inserting the following: 
     ``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 such 
     defendant as a result of the violation; or
       ``(III) the amount of losses incurred by victims as a 
     result of 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 amending paragraph (3) to read as follows:
       ``(3) Third tier.--Notwithstanding paragraphs (1) and (2), 
     the amount of penalty for each such act or omission shall not 
     exceed the greater of--
       ``(A) $1,000,000 for a natural person or $10,000,000 for 
     any other person;
       ``(B) 3 times the gross amount of pecuniary gain to the 
     person who committed the act or omission; or
       ``(C) the amount of losses incurred by victims as a result 
     of the act or omission, if--
       ``(i) the act or omission described in subsection (a) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(ii) such act or omission directly or indirectly resulted 
     in substantial losses or created a significant risk of 
     substantial losses to other persons or 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 amending subparagraph (C) to read as follows:
       ``(C) Third tier.--Notwithstanding subparagraphs (A) and 
     (B), 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, if--

       ``(I) the act or omission described in paragraph (1) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(II) such act or omission directly or indirectly resulted 
     in substantial losses or created a significant risk of 
     substantial losses to other persons or 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) in subparagraph (C), by striking ``greater of (i) 
     $100,000 for a natural person or $500,000 for any other 
     person, or (ii) the gross amount of pecuniary gain to such 
     defendant as a result of the violation'' and inserting the 
     following: ``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 such 
     defendant as a result of the violation; or
       ``(iii) the amount of losses incurred by victims as a 
     result of 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 amending subparagraph (C) to read as follows:
       ``(C) Third tier.--Notwithstanding subparagraphs (A) and 
     (B), 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, if--

[[Page S5261]]

       ``(I) the act or omission described in paragraph (1) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(II) such act or omission directly or indirectly resulted 
     in substantial losses or created a significant risk of 
     substantial losses to other persons or 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) in subparagraph (C), by striking ``greater of (i) 
     $100,000 for a natural person or $500,000 for any other 
     person, or (ii) the gross amount of pecuniary gain to such 
     defendant as a result of the violation'' and inserting the 
     following: ``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 such 
     defendant as a result of the violation; or
       ``(iii) the amount of losses incurred by victims as a 
     result of 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 amending paragraph (4) to read as follows:
       ``(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 amending subparagraph (D) to read as follows:
       ``(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 amending paragraph (4) to read as follows:
       ``(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

[[Page S5262]]

       ``(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 amending paragraph (4) to read as follows:
       ``(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).''.
                                 ______