Page:United States Statutes at Large Volume 104 Part 1.djvu/979

 PUBLIC LAW 101-429—OCT. 15, 1990 104 STAT. 945 interest, periods of accrual, and such other matters as it deems appropriate to implement this subsection."; and (3) in redesignated subsection (g), by striking "subsections (a) through (c) of. SEC. 302. MONEY PENALTIES IN CIVIL ACTIONS. Section 42 of the Investment Company Act of 1940 (15 U.S.C. 80a- 41) is amended by adding at the end thereof the following new subsection: " (e) MONEY PENALTIES IN CIVIL ACTIONS. — "(1) AUTHORITY OF COMMISSION.— W henever it shall appear to the Commission that any person hsis violated any provision of this title, the rules or regulations thereunder, or a cease-anddesist order entered by the Commission pursuant to section 9(f) of this title, 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 naturgd person or $250,000 for any other person, or (ii) the gross Eimount of ^ pecuniary gain to such defendant as a result of the violation, if the violation described in paragraph (1) involved fraud, deceit, msinipulation, or deliberate or reckless disregard of a regulatory requirement. "(C) THIRD TIER. — Notwithstanding subparagraphs (A) and (B), 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— "(I) the violation described in paragraph (1) involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and "(II) such violation directly or indirectly resulted in substantial losses or created a significant risk of substantial losses to other persons. "(3) PROCEDURES FOR COLLECTION.— "(A) PAYMENT OF PENALTY TO TREASURY.— A penalty imposed under this section shall be payable into the Treasury of the United States. "(B) COLLECTION OF PENALTIES.— If a person upon whom such a penalty is imposed shall fail to pay such penalty lyi within the time prescribed in the court's order, the Commissi' sion may refer the matter to the Attorney General who shall recover such penalty by action in the appropriate United States district court.

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