ENFORCEMENT OF TITLE.

SEC. 201. ENFORCEMENT OF TITLE. Section 21 of the Securities Exchange Act of 1934 (15 U.S.C. 78u(d)) is amended— (1) by redesignating subsection (d) as subsection (d)(1); (2) by inserting after subsection (d)(1) the following new paragraphs: “(2) Authority of a Court To Prohibit Persons From Serving as Officers and Directors.—In any proceeding under paragraph (1) of this subsection, the court may prohibit, conditionally or unconditionally, and permanently or for such period of time as it shall determine, any person who violated section 10(b) of this title or the rules or regulations thereunder from acting as an officer or director of any issuer that has a class of securities registered pursuant to section 12 of this title or that is required to file reports pursuant to section 15(d) of this title if the person’s conduct demonstrates 104 STAT. 936substantial unfitness to serve as an officer or director of any such issuer. “(3) Money Penalties in Civil Actions.— “(A) Authority of commission.—Whenever it shall appear to the Commission that any person has violated any provision of this title, the rules or regulations thereunder, or a cease-and-desist order entered by the Commission pursuant to section 21C of this title, other than by committing a violation subject to a penalty pursuant to section 21A, the Commission may bring an action in a United States district court to seek, and the court shall have jurisdiction to impose, upon a proper showing, a civil penalty to be paid by the person who committed such violation. “(B) Amount of penalty.— “(i) First tier.—The amount of the penalty shall be determined by the court in light of the facts and circumstances. For each violation, the amount of the penalty shall not exceed the greater of (I) $5,000 for a natural person or $50,000 for any other person, or (II) the gross amount of pecuniary gain to such defendant as a result of the violation. “(ii) Second tier.—Notwithstanding clause (i), the amount of penalty for each such violation shall not exceed the greater of (I) $50,000 for a natural person or $250,000 for any other person, or (II) the gross amount of pecuniary gain to such defendant as a result of the violation, if the violation described in subparagraph (A) involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement. “(iii) Third tier.—Notwithstanding clauses (i) and (ii), the amount of penalty for each such violation shall not exceed the greater of (I) $100,000 for a natural person or $500,000 for any other person, or (II) the gross amount of pecuniary gain to such defendant as a result of the violation, if— “(aa) the violation described in subparagraph (A) involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and “(bb) such violation directly or indirectly resulted in substantial losses or created a significant risk of substantial losses to other persons. “(C) Procedures for collection.— “(i) Payment of penalty to treasury.—A penalty imposed under this section shall be payable into the Treasury of the United States. “(ii) Collection of penalties.—If a person upon whom such a penalty is imposed shall fail to pay such penalty within the time prescribed in the court’s order, the Commission may refer the matter to the Attorney General who shall recover such penalty by action in the appropriate United States district court. “(iii) Remedy not exclusive.—The actions authorized by this paragraph may be brought in addition to any other action that the Commission or the Attorney General is entitled to bring. “(iv) Jurisdiction and venue.—For purposes of section 27 of this title, actions under this paragraph shall be actions to enforce a liability or a duty created by this title. 104 STAT. 937 “(D) Special provisions relating to a violation of a cease-and-desist order.—In an action to enforce a cease-and-desist order entered by the Commission pursuant to section 21C, each separate violation of such order shall be a separate offense, except that in the case of a violation through a continuing failure to comply with the order, each day of the failure to comply shall be deemed a separate offense.”.