The Text of the Dodd-Frank Act
from the
International Association of
Risk and Compliance Professionals (IARCP)
Dodd Frank Act Section 1079A
SEC. 1079A. FINANCIAL FRAUD PROVISIONS.
(a) SENTENCING GUIDELINES.—
(1) SECURITIES FRAUD.—
(A) DIRECTIVE.—Pursuant to its authority under section 994
of title 28, United States Code, and in accordance with this
paragraph, the United States Sentencing Commission shall review
and, if appropriate, amend the Federal Sentencing Guidelines and
policy statements applicable to persons convicted of offenses
relating to securities fraud or any other similar provision of
law, in order to reflect the intent of Congress that penalties for
the offenses under the guidelines and policy statements
appropriately account for the potential and actual harm to the
public and the financial markets from the offenses.
(B)
REQUIREMENTS.—In making any amendments to the Federal
Sentencing Guidelines and policy statements under subparagraph
(A), the United States Sentencing Commission shall—
(i)
ensure that the guidelines and policy statements, particularly
section 2B1.1(b)(14) and section 2B1.1(b)(17) (and any successors
thereto), reflect—
(I) the serious nature of the offenses
described in subparagraph (A);
(II) the need for an
effective deterrent and appropriate punishment to prevent the
offenses; and
(III) the effectiveness of incarceration in
furthering the objectives described in subclauses (I) and (II);
(ii) consider the extent to which the guidelines appropriately
account for the potential and actual harm to the public and the
financial markets resulting from the offenses;
(iii) ensure
reasonable consistency with other relevant directives and
guidelines and Federal statutes;
(iv) make any necessary
conforming changes to guidelines; and
(v) ensure that the
guidelines adequately meet the purposes of sentencing, as set
forth in section 3553(a)(2) of title 18, United States Code.
(2) FINANCIAL INSTITUTION FRAUD.—
(A) DIRECTIVE.—Pursuant to its authority under section
994 of title 28, United States Code, and in accordance with this
paragraph, the United States Sentencing Commission shall review
and, if appropriate, amend the Federal Sentencing Guidelines and
policy statements applicable to persons convicted of fraud
offenses relating to financial institutions or federally related
mortgage loans and any other similar provisions of law, to reflect
the intent of Congress that the penalties for the offenses under
the guidelines and policy statements ensure appropriate terms of
imprisonment for offenders involved in substantial bank frauds or
other frauds relating to financial institutions.
(B)
REQUIREMENTS.—In making any
amendments to the Federal Sentencing Guidelines and policy
statements under subparagraph (A), the United States Sentencing
Commission shall—
(i) ensure that the guidelines and policy
statements reflect—
(I) the serious nature of the offenses
described in subparagraph (A);
(II) the need for an
effective deterrent and appropriate punishment to prevent the
offenses; and
(III) the effectiveness of incarceration in
furthering the objectives described in subclauses (I) and (II);
(ii) consider the extent to which the guidelines appropriately
account for the potential and actual harm to the public and the
financial markets resulting from the offenses;
(iii) ensure
reasonable consistency with other relevant directives and
guidelines and Federal statutes;
(iv) make any necessary
conforming changes to guidelines; and
(v) ensure that the
guidelines adequately meet the purposes of sentencing, as set
forth in section 3553(a)(2) of title 18, United States Code.
(b) EXTENSION OF STATUTE OF LIMITATIONS
FOR SECURITIES FRAUD VIOLATIONS.—
(1) IN GENERAL.—Chapter
213 of title 18, United States Code, is amended by adding at the
end the following:
‘‘§ 3301. Securities fraud offenses
‘‘(a) DEFINITION.—In this
section, the term ‘securities fraud offense’ means a violation of,
or a conspiracy or an attempt to violate—
‘‘(1) section
1348;
‘‘(2) section 32(a) of the Securities Exchange Act of
1934 (15 U.S.C. 78ff(a));
‘‘(3) section 24 of the
Securities Act of 1933 (15 U.S.C. 77x);
‘‘(4) section 217
of the Investment Advisers Act of 1940 (15 U.S.C. 80b–17);
‘‘(5) section 49 of the Investment Company Act of 1940 (15 U.S.C.
80a–48); or
‘‘(6) section 325 of the Trust Indenture Act of
1939 (15 U.S.C. 77yyy).
‘‘(b)
LIMITATION.—No person shall be prosecuted, tried, or
punished for a securities fraud offense, unless the indictment is
found or the information is instituted within 6 years after the
commission of the offense.’’.
(2)
TECHNICAL AND CONFORMING AMENDMENT.—The table of sections
for chapter 213 of title 18, United States Code, is amended by
adding at the end the following: ‘‘3301. Securities fraud
offenses.’’.
(c) AMENDMENTS TO THE
FALSE CLAIMS ACT RELATING TO LIMITATIONS ON ACTIONS.—Section
3730(h) of title 31, United States Code, is amended—
(1) in
paragraph (1), by striking ‘‘or agent on behalf of the employee,
contractor, or agent or associated others in furtherance of other
efforts to stop 1 or more violations of this subchapter’’ and
inserting ‘‘agent or associated others in furtherance of an action
under this section or other efforts to stop 1 or more violations
of this subchapter’’; and
(2) by adding at the end the
following:
‘‘(3) LIMITATION ON
BRINGING CIVIL ACTION.—A civil action under this subsection
may not be brought more than 3 years after the date when the
retaliation occurred.’’.
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