Page:United States Statutes at Large Volume 104 Part 1.djvu/970

 104 STAT. 936 PUBLIC LAW 101-429—OCT. 15, 1990 substantial unfitness to serve as an officer or director of any such issuer. "(3) MONEY PENALTIES IN CIVIL ACTIONS. — Courts. "(A) AUTHORITY OF COMMISSION.— W henever it shall appear to the Commission that any person has violated any provision of this title, the rules or regulations thereunder, or a cease-anddesist order entered by the Commission pursuant to section 21C of this title, other than by committing a violation subject to a penalty pursuant to section 21A, 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. "(B) AMOUNT OF PENALTY. — "(i) 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, " (ii) SECOND TIER. —Notwithstanding clause (i), 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 gain to such defendant as a result of the violation, if the violation described in subparagraph (A) involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement. " (iii) THIRD TIER.— Notwithstanding clauses (i) and (ii), the amount of penalty for each such violation shall not exceed the 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, if— "(aa) the violation described in subparagraph (A) involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and "(bb) such violation directly or indirectly resulted in substantial losses or created a significant risk of substantial losses to other persons. "(C) PROCEDURES FOR COLLECTION. — " (i) PAYMENT OF PENALTY TO TREASURY. —A penalty imposed under this section shall be payable into the Treasury of the United States. "(ii) COLLECTION OF PENALTIES.— If a person upon whom such a penalty is imposed shall fail to pay such penalty within the time prescribed in the court's order, the Commission may refer the matter to the Attorney General who shall recover such penalty by action in the appropriate United States district court. "(iii) REMEDY NOT EXCLUSIVE. — The actions authorized by this paragraph may be brought in addition to any other action that the Commission or the Attorney General is entitled to bring. "(iv) JURISDICTION AND VENUE.— For purposes of section 27 of this title, actions under this paragraph shall be actions to enforce a liability or a duty created by this title.

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