{"id":1099,"date":"2012-07-29T22:20:14","date_gmt":"2012-07-29T22:20:14","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2012\/07\/the_sec_penalties_act_of_2012"},"modified":"2022-03-09T16:20:46","modified_gmt":"2022-03-09T22:20:46","slug":"the-sec-penalties-act-of-2012","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/the-sec-penalties-act-of-2012\/","title":{"rendered":"The SEC Penalties Act of 2012 Would Create Tough Financial Punishments for Securities Fraud"},"content":{"rendered":"

\t\t\t\tThe Stronger Enforcement of Civil Penalties Act of 2012, is bipartisan legislation that seeks to enhance the Commission’s power to clamp down on violations of securities law while raising the statutory ceilings on civil monetary penalties by tying a penalty’s size to the degree of harm wrought and amount of investor losses sustained. This bill is S. 3416 and is also known as the SEC Penalties Act. It was introduced by Senators Chuck Grassley (R-Iowa) and Jack Reed (D-RI). <\/p>\n

Currently, the SEC is only allowed to fine individuals that violate securities laws no more than $150,000\/offense. Institutions can be penalized up to $725,000 maximum. If a case goes to federal court, the Commission has sometimes been able to determine a penalty according to the gross amount of gains that were ill-gotten. <\/p>\n

The bill raises the cap per securities law violation offense to $10 million for entities and $1 million for individuals. If how much was made because of the misconduct and the penalty are linked, the Commission could up the penalty times three. Penalties could also be tripled for a recidivist that has had a securities fraud conviction or was the target of administrative relief by the SEC in the last 5 years. The Commission could assess in-house penalties for even cases not heard in federal court.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Stronger Enforcement of Civil Penalties Act of 2012, is bipartisan legislation that seeks to enhance the Commission’s power to clamp down on violations of securities law while raising the statutory ceilings on civil monetary penalties by tying a penalty’s size to the degree of harm wrought and amount of investor losses sustained. This bill […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3760,3741],"tags":[],"class_list":["post-1099","post","type-post","status-publish","format-standard","hentry","category-sec-enforcement","category-securities-fraud"],"yoast_head":"\nThe SEC Penalties Act of 2012 Would Create Tough Financial Punishments for Securities Fraud — Investor Lawyers Blog — July 29, 2012<\/title>\n<meta name=\"description\" content=\"The Stronger Enforcement of Civil Penalties Act of 2012, is bipartisan legislation that seeks to enhance the Commission's power to clamp down on — July 29, 2012\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/the-sec-penalties-act-of-2012\/\" 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