Current as of: February 2010 (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. Legislative History ________________________________________________________________________
U.S. Code Provisions: SecuritiesState Laws: Securities
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