119-s2920

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2920 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2920

 To enhance civil penalties under the Federal securities laws, and for 
 other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 September 19 (legislative day, September 16), 2025

Mr. Reed (for himself and Mr. Grassley) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
 and Urban Affairs

_______________________________________________________________________

 A BILL

 To enhance civil penalties under the Federal securities laws, and for 
 other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Stronger Enforcement of Civil 
Penalties Act of 2025''.

SEC. 2. UPDATED CIVIL MONEY PENALTIES FOR SECURITIES LAWS VIOLATIONS.

    (a) Securities Act of 1933.--

    (1) Money penalties in administrative actions.--

Section 8A

    (g)

    (2) of the Securities Act of 1933 (15 U.S.C. 77h-1

    (g)

    (2) ) 
 is amended--
        (A) in subparagraph
        (A) --
            (i) by striking ``$7,500'' and inserting 
 ``$10,000''; and
            (ii) by striking ``$75,000'' and inserting 
 ``$100,000'';
        (B) in subparagraph
        (B) --
            (i) by striking ``$75,000'' and inserting 
 ``$100,000''; and
            (ii) by striking ``$375,000'' and inserting 
 ``$500,000''; and
            (C) by striking subparagraph
            (C) and inserting the 
 following:
 ``
            (C) Third tier.--
 ``
            (i) In general.--Notwithstanding 
 subparagraphs
        (A) and
        (B) , for a third tier act 
 or omission, the amount of penalty for each 
 such act or omission shall not exceed the 
 greater of--
 ``
            (I) $1,000,000 for a natural 
 person or $10,000,000 for any other 
 person;
 ``
            (II) 3 times the gross amount of 
 pecuniary gain to the person who 
 committed the act or omission; or
 ``
            (III) the amount of losses 
 incurred by victims as a result of the 
 act or omission.
 ``
            (ii) Third tier act or omission.--For the 
 purposes of this subparagraph, the term `third 
 tier act or omission' means an act or omission 
 described in paragraph

    (1) that--
 ``
            (I) involved fraud, deceit, 
 manipulation, or deliberate or reckless 
 disregard of a regulatory requirement; 
 and
 ``
            (II) directly or indirectly--
 ``

    (aa) resulted in 
 substantial losses to other 
 persons;
 ``

    (bb) created a 
 significant risk of substantial 
 losses to other persons; or
 ``
            (cc) resulted in 
 substantial pecuniary gain to 
 the person who committed the 
 act or omission.''.

    (2) Money penalties in civil actions.--

Section 20
            (d) (2) of 
 the Securities Act of 1933 (15 U.S.C. 77t
            (d) (2) ) is amended--
        (A) in subparagraph
        (A) --
            (i) by striking ``$5,000'' and inserting 
 ``$10,000''; and
            (ii) by striking ``$50,000'' and inserting 
 ``$100,000'';
        (B) in subparagraph
        (B) --
            (i) by striking ``$50,000'' and inserting 
 ``$100,000''; and
            (ii) by striking ``$250,000'' and inserting 
 ``$500,000''; and
            (C) by striking subparagraph
            (C) and inserting the 
 following:
 ``
            (C) Third tier.--
 ``
            (i) In general.--Notwithstanding 
 subparagraphs
        (A) and
        (B) , for a third tier 
 violation, the amount of penalty for each such 
 violation shall not exceed the greater of--
 ``
            (I) $1,000,000 for a natural 
 person or $10,000,000 for any other 
 person;
 ``
            (II) 3 times the gross amount of 
 pecuniary gain to the person who 
 committed the violation; or
 ``
            (III) the amount of losses 
 incurred by victims as a result of the 
 violation.
 ``
            (ii) Third tier violation.--For the 
 purposes of this subparagraph, the term `third 
 tier violation' means a violation described in 
 paragraph

    (1) that--
 ``
            (I) involved fraud, deceit, 
 manipulation, or deliberate or reckless 
 disregard of a regulatory requirement; 
 and
 ``
            (II) directly or indirectly--
 ``

    (aa) resulted in 
 substantial losses to other 
 persons;
 ``

    (bb) created a 
 significant risk of substantial 
 losses to other persons; or
 ``
            (cc) resulted in 
 substantial pecuniary gain to 
 the person who committed the 
 violation.''.

    (b) Securities Exchange Act of 1934.--

    (1) Money penalties in civil actions.--

Section 21
            (d) (3)
        (B) of the Securities Exchange Act of 1934 (15 U.S.C. 78u
            (d) (3)
        (B) ) 
 is amended--
        (A) in clause
            (i) --
            (i) by striking ``$5,000'' and inserting 
 ``$10,000''; and
            (ii) by striking ``$50,000'' and inserting 
 ``$100,000'';
        (B) in clause
            (ii) --
            (i) by striking ``$50,000'' and inserting 
 ``$100,000''; and
            (ii) by striking ``$250,000'' and inserting 
 ``$500,000''; and
            (C) by striking clause
            (iii) and inserting the 
 following:
 ``
            (iii) Third tier.--
 ``
            (I) In general.--Notwithstanding 
 clauses
            (i) and
            (ii) , for a third tier 
 violation, the amount of penalty for 
 each such violation shall not exceed 
 the greater of--
 ``

    (aa) $1,000,000 for a 
 natural person or $10,000,000 
 for any other person;
 ``

    (bb) 3 times the gross 
 amount of pecuniary gain to the 
 person who committed the 
 violation; or
 ``
            (cc) the amount of losses 
 incurred by victims as a result 
 of the violation.
 ``
            (II) Third tier violation.--For 
 the purposes of this clause, the term 
 `third tier violation' means a 
 violation described in subparagraph
        (A) that--
 ``

    (aa) involved fraud, 
 deceit, manipulation, or 
 deliberate or reckless 
 disregard of a regulatory 
 requirement; and
 ``

    (bb) directly or 
 indirectly--

 ``

    (AA) resulted in 
 substantial losses to 
 other persons;

 ``

    (BB) created a 
 significant risk of 
 substantial losses to 
 other persons; or

 ``
            (CC) resulted in 
 substantial pecuniary 
 gain to the person who 
 committed the 
 violation.''.

    (2) Money penalties in administrative actions.--

Section 21B

    (b) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-
 2

    (b) ) is amended--
        (A) in paragraph

    (1) --
            (i) by striking ``$5,000'' and inserting 
 ``$10,000''; and
            (ii) by striking ``$50,000'' and inserting 
 ``$100,000'';
        (B) in paragraph

    (2) --
            (i) by striking ``$50,000'' and inserting 
 ``$100,000''; and
            (ii) by striking ``$250,000'' and inserting 
 ``$500,000''; and
            (C) by striking paragraph

    (3) and inserting the 
 following:
 ``

    (3) Third tier.--
 ``
        (A) In general.--Notwithstanding paragraphs

    (1) and

    (2) , for a third tier act or omission, the amount 
 of penalty for each such act or omission shall not 
 exceed the greater of--
 ``
            (i) $1,000,000 for a natural person or 
 $10,000,000 for any other person;
 ``
            (ii) 3 times the gross amount of 
 pecuniary gain to the person who committed the 
 act or omission; or
 ``
            (iii) the amount of losses incurred by 
 victims as a result of the act or omission.
 ``
        (B) Third tier act or omission.--For the purposes 
 of this paragraph, the term `third tier act or 
 omission' means an act or omission described in 
 paragraph

    (1) that--
 ``
            (i) involved fraud, deceit, manipulation, 
 or deliberate or reckless disregard of a 
 regulatory requirement; and
 ``
            (ii) directly or indirectly--
 ``
            (I) resulted in substantial 
 losses to other persons;
 ``
            (II) created a significant risk 
 of substantial losses to other persons; 
 or
 ``
            (III) resulted in substantial 
 pecuniary gain to the person who 
 committed the act or omission.''.
            (c) Investment Company Act of 1940.--

    (1) Money penalties in administrative actions.--

Section 9
            (d) (2) of the Investment Company Act of 1940 (15 U.S.C. 80a-
 9
            (d) (2) ) is amended--
        (A) in subparagraph
        (A) --
            (i) by striking ``$5,000'' and inserting 
 ``$10,000''; and
            (ii) by striking ``$50,000'' and inserting 
 ``$100,000'';
        (B) in subparagraph
        (B) --
            (i) by striking ``$50,000'' and inserting 
 ``$100,000''; and
            (ii) by striking ``$250,000'' and inserting 
 ``$500,000''; and
            (C) by striking subparagraph
            (C) and inserting the 
 following:
 ``
            (C) Third tier.--
 ``
            (i) In general.--Notwithstanding 
 subparagraphs
        (A) and
        (B) , for a third tier act 
 or omission, the amount of penalty for each 
 such act or omission shall not exceed the 
 greater of--
 ``
            (I) $1,000,000 for a natural 
 person or $10,000,000 for any other 
 person;
 ``
            (II) 3 times the gross amount of 
 pecuniary gain to the person who 
 committed the act or omission; or
 ``
            (III) the amount of losses 
 incurred by victims as a result of the 
 act or omission.
 ``
            (ii) Third tier act or omission.--For the 
 purposes of this subparagraph, the term `third 
 tier act or omission' means an act or omission 
 described in paragraph

    (1) that--
 ``
            (I) involved fraud, deceit, 
 manipulation, or deliberate or reckless 
 disregard of a regulatory requirement; 
 and
 ``
            (II) directly or indirectly--
 ``

    (aa) resulted in 
 substantial losses to other 
 persons;
 ``

    (bb) created a 
 significant risk of substantial 
 losses to other persons; or
 ``
            (cc) resulted in 
 substantial pecuniary gain to 
 the person who committed the 
 act or omission.''.

    (2) Money penalties in civil actions.--

Section 42

    (e)

    (2) of 
 the Investment Company Act of 1940 (15 U.S.C. 80a-41

    (e)

    (2) ) is 
 amended--
        (A) in subparagraph
        (A) --
            (i) by striking ``$5,000'' and inserting 
 ``$10,000''; and
            (ii) by striking ``$50,000'' and inserting 
 ``$100,000'';
        (B) in subparagraph
        (B) --
            (i) by striking ``$50,000'' and inserting 
 ``$100,000''; and
            (ii) by striking ``$250,000'' and inserting 
 ``$500,000''; and
            (C) by striking subparagraph
            (C) and inserting the 
 following:
 ``
            (C) Third tier.--
 ``
            (i) In general.--Notwithstanding 
 subparagraphs
        (A) and
        (B) , for a third tier 
 violation, the amount of penalty for each such 
 violation shall not exceed the greater of--
 ``
            (I) $1,000,000 for a natural 
 person or $10,000,000 for any other 
 person;
 ``
            (II) 3 times the gross amount of 
 pecuniary gain to the person who 
 committed the violation; or
 ``
            (III) the amount of losses 
 incurred by victims as a result of the 
 violation.
 ``
            (ii) Third tier violation.--For the 
 purposes of this subparagraph, the term `third 
 tier violation' means a violation described in 
 paragraph

    (1) that--
 ``
            (I) involved fraud, deceit, 
 manipulation, or deliberate or reckless 
 disregard of a regulatory requirement; 
 and
 ``
            (II) directly or indirectly--
 ``

    (aa) resulted in 
 substantial losses to other 
 persons;
 ``

    (bb) created a 
 significant risk of substantial 
 losses to other persons; or
 ``
            (cc) resulted in 
 substantial pecuniary gain to 
 the person who committed the 
 violation.''.
            (d) Investment Advisers Act of 1940.--

    (1) Money penalties in administrative actions.--

Section 203
            (i) (2) of the Investment Advisers Act of 1940 (15 U.S.C. 
 80b-3
            (i) (2) ) is amended--
        (A) in subparagraph
        (A) --
            (i) by striking ``$5,000'' and inserting 
 ``$10,000''; and
            (ii) by striking ``$50,000'' and inserting 
 ``$100,000'';
        (B) in subparagraph
        (B) --
            (i) by striking ``$50,000'' and inserting 
 ``$100,000''; and
            (ii) by striking ``$250,000'' and inserting 
 ``$500,000''; and
            (C) by striking subparagraph
            (C) and inserting the 
 following:
 ``
            (C) Third tier.--
 ``
            (i) In general.--Notwithstanding 
 subparagraphs
        (A) and
        (B) , for a third tier act 
 or omission, the amount of penalty for each 
 such act or omission shall not exceed the 
 greater of--
 ``
            (I) $1,000,000 for a natural 
 person or $10,000,000 for any other 
 person;
 ``
            (II) 3 times the gross amount of 
 pecuniary gain to the person who 
 committed the act or omission; or
 ``
            (III) the amount of losses 
 incurred by victims as a result of the 
 act or omission.
 ``
            (ii) Third tier act or omission.--For the 
 purposes of this subparagraph, the term `third 
 tier act or omission' means an act or omission 
 described in paragraph

    (1) that--
 ``
            (I) involved fraud, deceit, 
 manipulation, or deliberate or reckless 
 disregard of a regulatory requirement; 
 and
 ``
            (II) directly or indirectly--
 ``

    (aa) resulted in 
 substantial losses to other 
 persons;
 ``

    (bb) created a 
 significant risk of substantial 
 losses to other persons; or
 ``
            (cc) resulted in 
 substantial pecuniary gain to 
 the person who committed the 
 act or omission.''.

    (2) Money penalties in civil actions.--

Section 209

    (e)

    (2) of 
 the Investment Advisers Act of 1940 (15 U.S.C. 80b-9

    (e)

    (2) ) is 
 amended--
        (A) in subparagraph
        (A) --
            (i) by striking ``$5,000'' and inserting 
 ``$10,000''; and
            (ii) by striking ``$50,000'' and inserting 
 ``$100,000'';
        (B) in subparagraph
        (B) --
            (i) by striking ``$50,000'' and inserting 
 ``$100,000''; and
            (ii) by striking ``$250,000'' and inserting 
 ``$500,000''; and
            (C) by striking subparagraph
            (C) and inserting the 
 following:
 ``
            (C) Third tier.--
 ``
            (i) In general.--Notwithstanding 
 subparagraphs
        (A) and
        (B) , for a third tier 
 violation, the amount of penalty for each such 
 violation shall not exceed the greater of--
 ``
            (I) $1,000,000 for a natural 
 person or $10,000,000 for any other 
 person;
 ``
            (II) 3 times the gross amount of 
 pecuniary gain to the person who 
 committed the violation; or
 ``
            (III) the amount of losses 
 incurred by victims as a result of the 
 violation.
 ``
            (ii) Third tier violation.--For the 
 purposes of this subparagraph, the term `third 
 tier violation' means a violation described in 
 paragraph

    (1) that--
 ``
            (I) involved fraud, deceit, 
 manipulation, or deliberate or reckless 
 disregard of a regulatory requirement; 
 and
 ``
            (II) directly or indirectly--
 ``

    (aa) resulted in 
 substantial losses to other 
 persons;
 ``

    (bb) created a 
 significant risk of substantial 
 losses to other persons; or
 ``
            (cc) resulted in 
 substantial pecuniary gain to 
 the person who committed the 
 violation.''.

SEC. 3. PENALTIES FOR RECIDIVISTS.

    (a) Securities Act of 1933.--

    (1) Cease-and-desist proceedings.--

Section 8A

    (g)

    (2) of the 
 Securities Act of 1933 (15 U.S.C. 77h-1

    (g)

    (2) ) is amended by 
 adding at the end the following:
 ``
            (D) Fourth tier.--Notwithstanding subparagraphs
        (A) ,
        (B) , and
            (C) , the maximum amount of penalty for 
 each such act or omission shall be 3 times the 
 otherwise applicable amount in such subparagraphs if, 
 within the 5-year period preceding such act or 
 omission, the person who committed the act or omission 
 was criminally convicted for securities fraud or became 
 subject to a judgment or order imposing monetary, 
 equitable, or administrative relief in any Commission 
 action alleging fraud by that person.''.

    (2) Injunctions and prosecution of offenses.--

Section 20
            (d) (2) of the Securities Act of 1933 (15 U.S.C. 77t
            (d) (2) ) is 
 amended by adding at the end the following:
 ``
            (D) Fourth tier.--Notwithstanding subparagraphs
        (A) ,
        (B) , and
            (C) , the maximum amount of penalty for 
 each such violation shall be 3 times the otherwise 
 applicable amount in such subparagraphs if, within the 
 5-year period preceding such violation, the defendant 
 was criminally convicted for securities fraud or became 
 subject to a judgment or order imposing monetary, 
 equitable, or administrative relief in any Commission 
 action alleging fraud by that defendant.''.

    (b) Securities Exchange Act of 1934.--

    (1) Civil actions.--

Section 21
            (d) (3)
        (B) of the Securities 
 Exchange Act of 1934 (15 U.S.C. 78u
            (d) (3)
        (B) ) is amended by 
 adding at the end the following:
 ``
            (iv) Fourth tier.--Notwithstanding clauses
            (i) ,
            (ii) , and
            (iii) , the maximum amount of penalty for each 
 such violation shall be 3 times the otherwise 
 applicable amount in such clauses if, within the 5-year 
 period preceding such violation, the defendant was 
 criminally convicted for securities fraud or became 
 subject to a judgment or order imposing monetary, 
 equitable, or administrative relief in any Commission 
 action alleging fraud by that defendant.''.

    (2) Administrative proceedings.--

Section 21B

    (b) of the 
 Securities Exchange Act of 1934 (15 U.S.C. 78u-2

    (b) ) is amended 
 by adding at the end the following:
 ``

    (4) Fourth tier.--Notwithstanding paragraphs

    (1) ,

    (2) , 
 and

    (3) , the maximum amount of penalty for each such act or 
 omission shall be 3 times the otherwise applicable amount in 
 such paragraphs if, within the 5-year period preceding such act 
 or omission, the person who committed the act or omission was 
 criminally convicted for securities fraud or became subject to 
 a judgment or order imposing monetary, equitable, or 
 administrative relief in any Commission action alleging fraud 
 by that person.''.
            (c) Investment Company Act of 1940.--

    (1) Ineligibility of certain underwriters and affiliates.--
 

Section 9
            (d) (2) of the Investment Company Act of 1940 (15 
 U.S.C. 80a-9
            (d) (2) ) is amended by adding at the end the 
 following:
 ``
            (D) Fourth tier.--Notwithstanding subparagraphs
        (A) ,
        (B) , and
            (C) , the maximum amount of penalty for 
 each such act or omission shall be 3 times the 
 otherwise applicable amount in such subparagraphs if, 
 within the 5-year period preceding such act or 
 omission, the person who committed the act or omission 
 was criminally convicted for securities fraud or became 
 subject to a judgment or order imposing monetary, 
 equitable, or administrative relief in any Commission 
 action alleging fraud by that person.''.

    (2) Enforcement.--

Section 42

    (e)

    (2) of the Investment 
 Company Act of 1940 (15 U.S.C. 80a-41

    (e)

    (2) ) is amended by 
 adding at the end the following:
 ``
            (D) Fourth tier.--Notwithstanding subparagraphs
        (A) ,
        (B) , and
            (C) , the maximum amount of penalty for 
 each such violation shall be 3 times the otherwise 
 applicable amount in such subparagraphs if, within the 
 5-year period preceding such violation, the defendant 
 was criminally convicted for securities fraud or became 
 subject to a judgment or order imposing monetary, 
 equitable, or administrative relief in any Commission 
 action alleging fraud by that defendant.''.
            (d) Investment Advisers Act of 1940.--The Investment Advisers Act 
of 1940 (15 U.S.C. 80b-1 et seq.) is amended--

    (1) in 

section 203
            (i) (2) (15 U.S.C. 80b-3
            (i) (2) ), by adding 
 at the end the following:
 ``
            (D) Fourth tier.--Notwithstanding subparagraphs
        (A) ,
        (B) , and
            (C) , the maximum amount of penalty for 
 each such act or omission shall be 3 times the 
 otherwise applicable amount in such subparagraphs if, 
 within the 5-year period preceding such act or 
 omission, the person who committed the act or omission 
 was criminally convicted for securities fraud or became 
 subject to a judgment or order imposing monetary, 
 equitable, or administrative relief in any Commission 
 action alleging fraud by that person.''; and

    (2) in 

section 209

    (e)

    (2) (15 U.S.C. 80b-9

    (e)

    (2) ) by adding 
 at the end the following:
 ``
            (D) Fourth tier.--Notwithstanding subparagraphs
        (A) ,
        (B) , and
            (C) , the maximum amount of penalty for 
 each such violation shall be 3 times the otherwise 
 applicable amount in such subparagraphs if, within the 
 5-year period preceding such violation, the defendant 
 was criminally convicted for securities fraud or became 
 subject to a judgment or order imposing monetary, 
 equitable, or administrative relief in any Commission 
 action alleging fraud by that defendant.''.

SEC. 4. VIOLATIONS OF INJUNCTIONS AND BARS.

    (a) Securities Act of 1933.--

Section 20
            (d) of the Securities Act of 
1933 (15 U.S.C. 77t
            (d) ) is amended--

    (1) in paragraph

    (1) , by inserting after ``the rules or 
 regulations thereunder,'' the following: ``a Federal court 
 injunction or a bar obtained or entered by the Commission under 
 this title,''; and

    (2) by striking paragraph

    (4) and inserting the following:
 ``

    (4) Special provisions relating to a violation of an 
 injunction or certain orders.--
 ``
        (A) In general.--Each separate violation of an 
 injunction or order described in subparagraph
        (B) shall 
 be a separate offense, except that in the case of a 
 violation through a continuing failure to comply with 
 such injunction or order, each day of the failure to 
 comply with the injunction or order shall be deemed a 
 separate offense.
 ``
        (B) Injunctions and orders.--Subparagraph
        (A) shall apply with respect to any action to enforce--
 ``
            (i) a Federal court injunction obtained 
 pursuant to this title;
 ``
            (ii) an order entered or obtained by the 
 Commission pursuant to this title that bars, 
 suspends, places limitations on the activities 
 or functions of, or prohibits the activities of 
 a person; or
 ``
            (iii) a cease-and-desist order entered by 
 the Commission pursuant to 

section 8A.''.

    (b) Securities Exchange Act of 1934.--

Section 21
            (d) (3) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78u
            (d) (3) ) is amended--

    (1) in subparagraph
        (A) , by inserting after ``the rules or 
 regulations thereunder,'' the following: ``a Federal court 
 injunction or a bar obtained or entered by the Commission under 
 this title,''; and

    (2) by striking subparagraph
            (D) and inserting the 
 following:
 ``
            (D) Special provisions relating to a violation of an 
 injunction or certain orders.--
 ``
            (i) In general.--Each separate violation of an 
 injunction or order described in clause
            (ii) shall be a 
 separate offense, except that in the case of a 
 violation through a continuing failure to comply with 
 such injunction or order, each day of the failure to 
 comply with the injunction or order shall be deemed a 
 separate offense.
 ``
            (ii) Injunctions and orders.--Clause
            (i) shall 
 apply with respect to an action to enforce--
 ``
            (I) a Federal court injunction obtained 
 pursuant to this title;
 ``
            (II) an order entered or obtained by the 
 Commission pursuant to this title that bars, 
 suspends, places limitations on the activities 
 or functions of, or prohibits the activities of 
 a person; or
 ``
            (III) a cease-and-desist order entered by 
 the Commission pursuant to 

section 21C.''.
            (c) Investment Company Act of 1940.--

Section 42

    (e) of the 
Investment Company Act of 1940 (15 U.S.C. 80a-41

    (e) ) is amended--

    (1) in paragraph

    (1) , by inserting after ``the rules or 
 regulations thereunder,'' the following: ``a Federal court 
 injunction or a bar obtained or entered by the Commission under 
 this title,''; and

    (2) by striking paragraph

    (4) and inserting the following:
 ``

    (4) Special provisions relating to a violation of an 
 injunction or certain orders.--
 ``
        (A) In general.--Each separate violation of an 
 injunction or order described in subparagraph
        (B) shall 
 be a separate offense, except that in the case of a 
 violation through a continuing failure to comply with 
 such injunction or order, each day of the failure to 
 comply with the injunction or order shall be deemed a 
 separate offense.
 ``
        (B) Injunctions and orders.--Subparagraph
        (A) shall apply with respect to any action to enforce--
 ``
            (i) a Federal court injunction obtained 
 pursuant to this title;
 ``
            (ii) an order entered or obtained by the 
 Commission pursuant to this title that bars, 
 suspends, places limitations on the activities 
 or functions of, or prohibits the activities of 
 a person; or
 ``
            (iii) a cease-and-desist order entered by 
 the Commission pursuant to 

section 9

    (f) .''.
            (d) Investment Advisers Act of 1940.--

Section 209

    (e) of the 
Investment Advisers Act of 1940 (15 U.S.C. 80b-9

    (e) ) is amended--

    (1) in paragraph

    (1) , by inserting after ``the rules or 
 regulations thereunder,'' the following: ``a Federal court 
 injunction or a bar obtained or entered by the Commission under 
 this title,''; and

    (2) by striking paragraph

    (4) and inserting the following:
 ``

    (4) Special provisions relating to a violation of an 
 injunction or certain orders.--
 ``
        (A) In general.--Each separate violation of an 
 injunction or order described in subparagraph
        (B) shall 
 be a separate offense, except that in the case of a 
 violation through a continuing failure to comply with 
 such injunction or order, each day of the failure to 
 comply with the injunction or order shall be deemed a 
 separate offense.
 ``
        (B) Injunctions and orders.--Subparagraph
        (A) shall apply with respect to any action to enforce--
 ``
            (i) a Federal court injunction obtained 
 pursuant to this title;
 ``
            (ii) an order entered or obtained by the 
 Commission pursuant to this title that bars, 
 suspends, places limitations on the activities 
 or functions of, or prohibits the activities of 
 a person; or
 ``
            (iii) a cease-and-desist order entered by 
 the Commission pursuant to 

section 203

    (k) .''.
 <all>