Stronger Enforcement of Civil Penalties Act of 2025

This Act may be cited as the Stronger Enforcement of Civil Penalties Act of 2025.
Section 8A(g)(2) of the Securities Act of 1933 (15 U.S.C. 77h–1(g)(2)) is amended—
in subparagraph (A)—
by striking $7,500 and inserting $10,000; and
by striking $75,000 and inserting $100,000;
in subparagraph (B)—
by striking $75,000 and inserting $100,000; and
by striking $375,000 and inserting $500,000; and
by striking subparagraph (C) and inserting the following:
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—
$1,000,000 for a natural person or $10,000,000 for any other person;
3 times the gross amount of pecuniary gain to the person who committed the act or omission; or
the amount of losses incurred by victims as a result of the 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—
involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and
directly or indirectly—
resulted in substantial losses to other persons;
created a significant risk of substantial losses to other persons; or
resulted in substantial pecuniary gain to the person who committed the act or omission.
Section 20(d)(2) of the Securities Act of 1933 (15 U.S.C. 77t(d)(2)) is amended—
in subparagraph (A)—
by striking $5,000 and inserting $10,000; and
by striking $50,000 and inserting $100,000;
in subparagraph (B)—
by striking $50,000 and inserting $100,000; and
by striking $250,000 and inserting $500,000; and
by striking subparagraph (C) and inserting the following:
Notwithstanding subparagraphs (A) and (B), for a third tier violation, the amount of penalty for each such violation shall not exceed the greater of—
$1,000,000 for a natural person or $10,000,000 for any other person;
3 times the gross amount of pecuniary gain to the person who committed the violation; or
the amount of losses incurred by victims as a result of the violation.
For the purposes of this subparagraph, the term third tier violation means a violation described in paragraph (1) that—
involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and
directly or indirectly—
resulted in substantial losses to other persons;
created a significant risk of substantial losses to other persons; or
resulted in substantial pecuniary gain to the person who committed the violation.
Section 21(d)(3)(B) of the Securities Exchange Act of 1934 (15 U.S.C. 78u(d)(3)(B)) is amended—
in clause (i)—
by striking $5,000 and inserting $10,000; and
by striking $50,000 and inserting $100,000;
in clause (ii)—
by striking $50,000 and inserting $100,000; and
by striking $250,000 and inserting $500,000; and
by striking clause (iii) and inserting the following:
Notwithstanding clauses (i) and (ii), for a third tier violation, the amount of penalty for each such violation shall not exceed the greater of—
$1,000,000 for a natural person or $10,000,000 for any other person;
3 times the gross amount of pecuniary gain to the person who committed the violation; or
the amount of losses incurred by victims as a result of the violation.
For the purposes of this clause, the term third tier violation means a violation described in subparagraph (A) that—
involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and
directly or indirectly—
resulted in substantial losses to other persons;
created a significant risk of substantial losses to other persons; or
resulted in substantial pecuniary gain to the person who committed the violation.
Section 21B(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78u–2(b)) is amended—
in paragraph (1)—
by striking $5,000 and inserting $10,000; and
by striking $50,000 and inserting $100,000;
in paragraph (2)—
by striking $50,000 and inserting $100,000; and
by striking $250,000 and inserting $500,000; and
by striking paragraph (3) and inserting the following:
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—
$1,000,000 for a natural person or $10,000,000 for any other person;
3 times the gross amount of pecuniary gain to the person who committed the act or omission; or
the amount of losses incurred by victims as a result of the 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—
involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and
directly or indirectly—
resulted in substantial losses to other persons;
created a significant risk of substantial losses to other persons; or
resulted in substantial pecuniary gain to the person who committed the act or omission.
Section 9(d)(2) of the Investment Company Act of 1940 (15 U.S.C. 80a–9(d)(2)) is amended—
in subparagraph (A)—
by striking $5,000 and inserting $10,000; and
by striking $50,000 and inserting $100,000;
in subparagraph (B)—
by striking $50,000 and inserting $100,000; and
by striking $250,000 and inserting $500,000; and
by striking subparagraph (C) and inserting the following:
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—
$1,000,000 for a natural person or $10,000,000 for any other person;
3 times the gross amount of pecuniary gain to the person who committed the act or omission; or
the amount of losses incurred by victims as a result of the 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—
involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and
directly or indirectly—
resulted in substantial losses to other persons;
created a significant risk of substantial losses to other persons; or
resulted in substantial pecuniary gain to the person who committed the act or omission.
Section 42(e)(2) of the Investment Company Act of 1940 (15 U.S.C. 80a–41(e)(2)) is amended—
in subparagraph (A)—
by striking $5,000 and inserting $10,000; and
by striking $50,000 and inserting $100,000;
in subparagraph (B)—
by striking $50,000 and inserting $100,000; and
by striking $250,000 and inserting $500,000; and
by striking subparagraph (C) and inserting the following:
Notwithstanding subparagraphs (A) and (B), for a third tier violation, the amount of penalty for each such violation shall not exceed the greater of—
$1,000,000 for a natural person or $10,000,000 for any other person;
3 times the gross amount of pecuniary gain to the person who committed the violation; or
the amount of losses incurred by victims as a result of the violation.
For the purposes of this subparagraph, the term third tier violation means a violation described in paragraph (1) that—
involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and
directly or indirectly—
resulted in substantial losses to other persons;
created a significant risk of substantial losses to other persons; or
resulted in substantial pecuniary gain to the person who committed the violation.
Section 203(i)(2) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–3(i)(2)) is amended—
in subparagraph (A)—
by striking $5,000 and inserting $10,000; and
by striking $50,000 and inserting $100,000;
in subparagraph (B)—
by striking $50,000 and inserting $100,000; and
by striking $250,000 and inserting $500,000; and
by striking subparagraph (C) and inserting the following:
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—
$1,000,000 for a natural person or $10,000,000 for any other person;
3 times the gross amount of pecuniary gain to the person who committed the act or omission; or
the amount of losses incurred by victims as a result of the 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—
involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and
directly or indirectly—
resulted in substantial losses to other persons;
created a significant risk of substantial losses to other persons; or
resulted in substantial pecuniary gain to the person who committed the act or omission.
Section 209(e)(2) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–9(e)(2)) is amended—
in subparagraph (A)—
by striking $5,000 and inserting $10,000; and
by striking $50,000 and inserting $100,000;
in subparagraph (B)—
by striking $50,000 and inserting $100,000; and
by striking $250,000 and inserting $500,000; and
by striking subparagraph (C) and inserting the following:
Notwithstanding subparagraphs (A) and (B), for a third tier violation, the amount of penalty for each such violation shall not exceed the greater of—
$1,000,000 for a natural person or $10,000,000 for any other person;
3 times the gross amount of pecuniary gain to the person who committed the violation; or
the amount of losses incurred by victims as a result of the violation.
For the purposes of this subparagraph, the term third tier violation means a violation described in paragraph (1) that—
involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement; and
directly or indirectly—
resulted in substantial losses to other persons;
created a significant risk of substantial losses to other persons; or
resulted in substantial pecuniary gain to the person who committed the violation.
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:
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.
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:
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.
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:
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.
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:
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.
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:
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.
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:
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.
The Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) is amended—
in section 203(i)(2) (15 U.S.C. 80b–3(i)(2)), by adding at the end the following:
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.
in section 209(e)(2) (15 U.S.C. 80b–9(e)(2)) by adding at the end the following:
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.
Section 20(d) of the Securities Act of 1933 (15 U.S.C. 77t(d)) is amended—
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
by striking paragraph (4) and inserting the following:
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.
Subparagraph (A) shall apply with respect to any action to enforce—
a Federal court injunction obtained pursuant to this title;
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
a cease-and-desist order entered by the Commission pursuant to section 8A.
Section 21(d)(3) of the Securities Exchange Act of 1934 (15 U.S.C. 78u(d)(3)) is amended—
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
by striking subparagraph (D) and inserting the following:
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.
Clause (i) shall apply with respect to an action to enforce—
a Federal court injunction obtained pursuant to this title;
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
a cease-and-desist order entered by the Commission pursuant to section 21C.
Section 42(e) of the Investment Company Act of 1940 (15 U.S.C. 80a–41(e)) is amended—
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
by striking paragraph (4) and inserting the following:
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.
Subparagraph (A) shall apply with respect to any action to enforce—
a Federal court injunction obtained pursuant to this title;
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
a cease-and-desist order entered by the Commission pursuant to section 9(f).
Section 209(e) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–9(e)) is amended—
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
by striking paragraph (4) and inserting the following:
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.
Subparagraph (A) shall apply with respect to any action to enforce—
a Federal court injunction obtained pursuant to this title;
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
a cease-and-desist order entered by the Commission pursuant to section 203(k).