Articles Tagged with Stronger Enforcement of Civil Penalties Act of 2017

A bipartisan bill introduced in the US Senate wants to let the US Securities and Exchange Commission order violators of securities laws to pay much higher sanctions. If turned into law, the legislation would allow the regulator impose up to $1M as a penalty on individuals for every violation of the most serious offenses. The per penalty violation maximum for financial firms would be raised to $10M. 

Currently, individuals cannot be ordered to pay a more than $181,071 penalty and the maximum for firms is $905,353. The SEC would have the option of tripling the cap on the maximum for repeat offenders who have been held civilly or criminally liable for securities fraud within the last five years. 

At the moment, the SEC can calculate penalties that are the equivalent of the gross amount that were the ill-gotten gains only if the case is heard in federal court. The regulator cannot do so if it deals with the case administratively. The bipartisan bill would allow the regulator to assess such penalties in-house. 

Continue Reading ›