Senators Jack Reed (D-RI) and Chuck Grassley (R-IA) are both sponsoring a new bill that will soon be introduced to the Senate. The bill would increase the fines and penalties that can be charged against criminals who try to take advantage of investors through securities fraud crimes.
The Securities and Exchange Commission (SEC) can currently penalize individuals up to $150,000 (and entities up to $725,000) per securities fraud violation). The new bill would also raise the penalties that the (SEC) can impose on those who try to take advantage of consumers through investment fraud, with maximum penalties up to $10 million.
The proposed bill would also increase the penalty cap for repeat securities fraud crime offenders by three-fold. Penalties would also be able to┬ábe enforced by the SEC in-house and not require a federal court. This is the latest attempt to give the SEC more authority to combat thieves who commit┬ástockbroker fraud