CITE

    15 USC Sec. 78ff                                            01/05/2009

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2B - SECURITIES EXCHANGES

HEAD

    Sec. 78ff. Penalties

STATUTE

    (a) Willful violations; false and misleading statements
      Any person who willfully violates any provision of this chapter
    (other than section 78dd-1 of this title), or any rule or
    regulation thereunder the violation of which is made unlawful or
    the observance of which is required under the terms of this
    chapter, or any person who willfully and knowingly makes, or causes
    to be made, any statement in any application, report, or document
    required to be filed under this chapter or any rule or regulation
    thereunder or any undertaking contained in a registration statement
    as provided in subsection (d) of section 78o of this title, or by
    any self-regulatory organization in connection with an application
    for membership or participation therein or to become associated
    with a member thereof which statement was false or misleading with
    respect to any material fact, shall upon conviction be fined not
    more than $5,000,000, or imprisoned not more than 20 years, or
    both, except that when such person is a person other than a natural
    person, a fine not exceeding $25,000,000 may be imposed; but no
    person shall be subject to imprisonment under this section for the
    violation of any rule or regulation if he proves that he had no
    knowledge of such rule or regulation.
    (b) Failure to file information, documents, or reports
      Any issuer which fails to file information, documents, or reports
    required to be filed under subsection (d) of section 78o of this
    title or any rule or regulation thereunder shall forfeit to the
    United States the sum of $100 for each and every day such failure
    to file shall continue. Such forfeiture, which shall be in lieu of
    any criminal penalty for such failure to file which might be deemed
    to arise under subsection (a) of this section, shall be payable
    into the Treasury of the United States and shall be recoverable in
    a civil suit in the name of the United States.
    (c) Violations by issuers, officers, directors, stockholders,
      employees, or agents of issuers
      (1)(A) Any issuer that violates subsection (a) or (g) of section
    78dd-1 of this title shall be fined not more than $2,000,000.
      (B) Any issuer that violates subsection (a) or (g) of section
    78dd-1 of this title shall be subject to a civil penalty of not
    more than $10,000 imposed in an action brought by the Commission.
      (2)(A) Any officer, director, employee, or agent of an issuer, or
    stockholder acting on behalf of such issuer, who willfully violates
    subsection (a) or (g) of section 78dd-1 of this title shall be
    fined not more than $100,000, or imprisoned not more than 5 years,
    or both.
      (B) Any officer, director, employee, or agent of an issuer, or
    stockholder acting on behalf of such issuer, who violates
    subsection (a) or (g) of section 78dd-1 of this title shall be
    subject to a civil penalty of not more than $10,000 imposed in an
    action brought by the Commission.
      (3) Whenever a fine is imposed under paragraph (2) upon any
    officer, director, employee, agent, or stockholder of an issuer,
    such fine may not be paid, directly or indirectly, by such issuer.

SOURCE

    (June 6, 1934, ch. 404, title I, Sec. 32, 48 Stat. 904; May 27,
    1936, ch. 462, Sec. 9, 49 Stat. 1380; June 25, 1938, ch. 677, Sec.
    4, 52 Stat. 1076; Pub. L. 88-467, Sec. 11, Aug. 20, 1964, 78 Stat.
    580; Pub. L. 94-29, Secs. 23, 27(b), June 4, 1975, 89 Stat. 162,
    163; Pub. L. 95-213, title I, Sec. 103(b), Dec. 19, 1977, 91 Stat.
    1496; Pub. L. 98-376, Sec. 3, Aug. 10, 1984, 98 Stat. 1265; Pub. L.
    100-418, title V, Sec. 5003(b), Aug. 23, 1988, 102 Stat. 1419; Pub.
    L. 100-704, Sec. 4, Nov. 19, 1988, 102 Stat. 4680; Pub. L. 105-366,
    Sec. 2(d), Nov. 10, 1998, 112 Stat. 3303; Pub. L. 107-204, title
    XI, Sec. 1106, July 30, 2002, 116 Stat. 810.)

REFERENCES IN TEXT

      This chapter, referred to in subsec. (a), was in the original
    "this title". See References in Text note set out under section 78a
    of this title.

AMENDMENTS

      2002 - Subsec. (a). Pub. L. 107-204 substituted "$5,000,000, or
    imprisoned not more than 20 years" for "$1,000,000, or imprisoned
    not more than 10 years" and "$25,000,000" for "$2,500,000".
      1998 - Subsec. (c)(1). Pub. L. 105-366, Sec. 2(d)(1), (2),
    substituted "subsection (a) or (g) of section 78dd-1" for "section
    78dd-1(a)" in subpars. (A) and (B).
      Subsec. (c)(2). Pub. L. 105-366, Sec. 2(d)(3), amended par. (2)
    generally. Prior to amendment, par. (2) read as follows:
      "(2)(A) Any officer or director of an issuer, or stockholder
    acting on behalf of such issuer, who willfully violates section
    78dd-1(a) of this title shall be fined not more than $100,000, or
    imprisoned not more than 5 years, or both.
      "(B) Any employee or agent of an issuer who is a United States
    citizen, national, or resident or is otherwise subject to the
    jurisdiction of the United States (other than an officer, director,
    or stockholder acting on behalf of such issuer), and who willfully
    violates section 78dd-1(a) of this title, shall be fined not more
    than $100,000, or imprisoned not more than 5 years, or both.
      "(C) Any officer, director, employee, or agent of an issuer, or
    stockholder acting on behalf of such issuer, who violates section
    78dd-1(a) of this title shall be subject to a civil penalty of not
    more than $10,000 imposed in an action brought by the Commission."
      1988 - Subsec. (a). Pub. L. 100-704 substituted "$1,000,000" for
    "$100,000", "10 years" for "five years", "is a person other than a
    natural person" for "is an exchange", and "$2,500,000" for
    "$500,000".
      Subsec. (c). Pub. L. 100-418 amended subsec. (c) generally. Prior
    to amendment, subsec. (c) read as follows:
      "(1) Any issuer which violates section 78dd-1(a) of this title
    shall, upon conviction, be fined not more than $1,000,000.
      "(2) Any officer or director of an issuer, or any stockholder
    acting on behalf of such issuer, who willfully violates section
    78dd-1(a) of this title shall, upon conviction, be fined not more
    than $10,000, or imprisoned not more than five years, or both.
      "(3) Whenever an issuer is found to have violated section 78dd-
    1(a) of this title, any employee or agent of such issuer who is a
    United States citizen, national, or resident or is otherwise
    subject to the jurisdiction of the United States (other than an
    officer, director, or stockholder of such issuer), and who
    willfully carried out the act or practice constituting such
    violation shall, upon conviction, be fined not more than $10,000,
    or imprisoned not more than five years, or both.
      "(4) Whenever a fine is imposed under paragraph (2) or (3) of
    this subsection upon any officer, director, stockholder, employee,
    or agent of an issuer, such fine shall not be paid, directly or
    indirectly, by such issuer."
      1984 - Subsec. (a). Pub. L. 98-376 substituted "$100,000" for
    "$10,000".
      1977 - Subsec. (a). Pub. L. 95-213, Sec. 103(b)(1), inserted
    "(other than section 78dd-1 of this title)" after "Any person who
    willfully violates any provision of this chapter".
      Subsec. (c). Pub. L. 95-213, Sec. 103(b)(2), added subsec. (c).
      1975 - Subsec. (a). Pub. L. 94-29, Secs. 23(1), 27(b), inserted
    "or by any self-regulatory organization in connection with an
    application for membership or participation therein or to become
    associated with a member thereof," and substituted "or imprisoned
    not more than five years" for "or imprisoned not more than two
    years".
      Subsec. (c). Pub. L. 94-29, Sec. 23(2), struck out subsec. (c)
    which rendered this section inapplicable to violations of any rule
    or regulation prescribed pursuant to paragraph (3) of subsection
    (c) of section 78o of this title.
      1964 - Subsec. (b). Pub. L. 88-467 substituted "required to be
    filed under" for "pursuant to an undertaking contained in a
    registration statement as provided in" and inserted "or any rule or
    regulation thereunder" after "section 78o of this title."
      1938 - Subsec. (c). Act June 25, 1938, added subsec. (c).
      1936 - Subsec. (a). Act May 27, 1936, inserted "or any
    undertaking contained in a registration statement as provided in
    subsection (d) of section 78o of this title".
      Subsec. (b). Act May 27, 1936, added subsec. (b).
                     EFFECTIVE DATE OF 1988 AMENDMENT
      Amendment by Pub. L. 100-704 not applicable to actions occurring
    before Nov. 19, 1988, see section 9 of Pub. L. 100-704, set out as
    a note under section 78o of this title.
                     EFFECTIVE DATE OF 1984 AMENDMENT
      Amendment by Pub. L. 98-376 effective Aug. 10, 1984, see section
    7 of Pub. L. 98-376, set out as a note under section 78c of this
    title.
                     EFFECTIVE DATE OF 1975 AMENDMENT
      Amendment by Pub. L. 94-29 effective June 4, 1975, see section
    31(a) of Pub. L. 94-29, set out as a note under section 78b of this
    title.
                     EFFECTIVE DATE OF 1964 AMENDMENT
      Amendment by Pub. L. 88-467 effective Aug. 20, 1964, see section
    13 of Pub. L. 88-467, set out as a note under section 78c of this
    title.