Page:United States Statutes at Large Volume 104 Part 1.djvu/966

 104 STAT. 932 PUBLIC LAW 101-429—OCT. 15, 1990 (B) ACCOUNTING AND DISGORGEMENT.—Subparagraph (A) shall not operate to preclude the Securities and Exchange Commission from ordering an accounting or disgorgement pursuant to the amendments made by this Act. (3) SPECIAL RULES FOR TITLE V.— (A) SECTIONS 503 AND 504.— Except as provided in subparagraph (C), sections 503 and 504 shall be effective 12 months after the date of enactment of this Act or upon the issuance of final regulations initially implementing such section, whichever is earlier. (B) SECTIONS 505 AND 508.— Except as provided in subparagraph (C), sections 505 and 508 shall be effective 18 months after the date of enactment of this Act or upon the issuance of final regulations initially implementing such sections, whichever is earlier. (C) COMMENCEMENT OF RULEMAKING. —Not later than 180 days after the date of enactment of this Act, the Commission shall commence rulemaking proceedings to implement sections 503, 505, and 508. TITLE I—AMENDMENTS TO THE SECURITIES ACT OF 1933 SEC. 101. AUTHORITY OF A COURT TO IMPOSE MONEY PENALTIES AND TO PROHIBIT PERSONS FROM SERVING AS OFFICERS AND DIREC- TORS. Section 20 of the Securities Act of 1933 (15 U.S.C. lit) is amended by adding at the end thereof the following new subsections: "(d) MONEY PENALTIES IN CIVIL ACTIONS. — "(1) AUTHORITY OF COMMISSION.— Whenever it shall appear to the Commission that any person has violated any provision of this title, the rules or regulations thereunder, or a ceeise-anddesist order entered by the Commission pursuant to section 8A of this title, other than by committing a violation subject to a penalty pursuant to section 21A of the Securities Exchange Act of 1934, the Commission may bring an action in a United States district court to seek, and the court shall have jurisdiction to impose, upon a proper showing, a civil penalty to be paid by the person who committed such violation. " (2) AMOUNT OF PENALTY. — "(A) FIRST TIER.— The amount of the penalty shall be determined by the court in light of the facts and circumstances. For each violation, the amount of the penalty shall not exceed the greater of (i) $5,000 for a natural person or $50,000 for any other person, or (ii) the gross amount of pecuniary gain to such defendant as a result of the violation. "(B) SECOND TIER. —Notwithstanding subparagraph (A), the amount of penalty for each such violation shall not exceed the greater of (i) $50,000 for a natural person or $250,000 for any other person, or (ii) the gross amount of pecuniary ggiin to such defendant as a result of the violation, if the violation described in paragraph (1) involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement.

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