Page:United States Statutes at Large Volume 124.djvu/1888

124 STAT. 1862 PUBLIC LAW 111–203—JULY 21, 2010 violation of a provision of this Act, or of any rule or regulation issued under this Act, shall be deemed to be in violation of such provision to the same extent as the person to whom such assistance is provided.’’. SEC. 929N. AUTHORITY TO IMPOSE PENALTIES FOR AIDING AND ABET- TING VIOLATIONS OF THE INVESTMENT ADVISERS ACT. Section 209 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–9) is amended by inserting at the end the following new sub- section: ‘‘(f) AIDING AND ABETTING.—For purposes of any action brought by the Commission under subsection (e), any person that knowingly or recklessly has aided, abetted, counseled, commanded, induced, or procured a violation of any provision of this Act, or of any rule, regulation, or order hereunder, shall be deemed to be in violation of such provision, rule, regulation, or order to the same extent as the person that committed such violation.’’. SEC. 929O. AIDING AND ABETTING STANDARD OF KNOWLEDGE SATIS- FIED BY RECKLESSNESS. Section 20(e) of the Securities Exchange Act of 1934 (15 U.S.C. 78t(e)) is amended by inserting ‘‘or recklessly’’ after ‘‘knowingly’’. SEC. 929P. STRENGTHENING ENFORCEMENT BY THE COMMISSION. (a) AUTHORITY TO IMPOSE CIVIL PENALTIES IN CEASE AND DESIST PROCEEDINGS.— (1) UNDER THE SECURITIES ACT OF 1933.—Section 8A of the Securities Act of 1933 (15 U.S.C. 77h–1) is amended by adding at the end the following new subsection: ‘‘(g) AUTHORITY TO IMPOSE MONEY PENALTIES.— ‘‘(1) GROUNDS.—In any cease-and-desist proceeding under subsection (a), the Commission may impose a civil penalty on a person if the Commission finds, on the record, after notice and opportunity for hearing, that— ‘‘(A) such person— ‘‘(i) is violating or has violated any provision of this title, or any rule or regulation issued under this title; or ‘‘(ii) is or was a cause of the violation of any provision of this title, or any rule or regulation there- under; and ‘‘(B) such penalty is in the public interest. ‘‘(2) MAXIMUM AMOUNT OF PENALTY.— ‘‘(A) FIRST TIER.—The maximum amount of a penalty for each act or omission described in paragraph (1) shall be $7,500 for a natural person or $75,000 for any other person. ‘‘(B) SECOND TIER.—Notwithstanding subparagraph (A), the maximum amount of penalty for each such act or omission shall be $75,000 for a natural person or $375,000 for any other person, if the act or omission described in paragraph (1) involved fraud, deceit, manipula- tion, or deliberate or reckless disregard of a regulatory requirement. ‘‘(C) THIRD TIER.—Notwithstanding subparagraphs (A) and (B), the maximum amount of penalty for each such act or omission shall be $150,000 for a natural person or $725,000 for any other person, if—