Stronger Enforcement of Civil Penalties Act of 2024

The Stronger Enforcement of Civil Penalties Act of 2024 increases civil penalties for securities law violations across multiple securities laws. It establishes a "third tier" penalty structure for violations involving fraud, deceit, manipulation, or reckless disregard of regulations, where penalties can reach up to $10 million for entities or $1 million for individuals, whichever is greater, based on victim losses, the violator's gain, or the penalty amount. The bill also creates a "fourth tier" penalty that triples the maximum penalty for those with prior securities fraud convictions or penalties within the previous five years. This legislation directly affects financial professionals, investment firms, and other entities subject to securities regulations who violate these laws. The changes apply to enforcement under the Securities Act of 1933, Securities Exchange Act of 1934, Investment Company Act of 1940, and Investment Advisers Act of 1940.