I
111th CONGRESS
2d Session
H. R. 5042
IN THE HOUSE OF REPRESENTATIVES
April 15, 2010
Ms. Waters (for herself and Mr. Frank of Massachusetts) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend section 20 of the Securities Exchange Act of 1934 to allow for a private civil action against a person that provides substantial assistance in violation of such Act.
Short title
This Act may be cited as the
Liability for Aiding and Abetting
Securities Violations Act of 2010
.
Private civil actions for aiding and abetting
Section 20(e) of the Securities Exchange Act of 1934 (15 U.S.C. 78t(e)) is amended—
in the subsection
heading, by striking Prosecution of
and inserting
Actions
against
;
by striking
For purposes
and inserting the following:
Actions brought by Commission
For purposes
;
in paragraph (1),
as so designated, by inserting or recklessly
after
knowingly
; and
by adding at the end the following:
Private civil actions
For purposes of any private civil action implied under this title, any person that knowingly or recklessly provides substantial assistance to another person in violation of this title, or of any rule or regulation issued under this title, shall be deemed to be in violation of this title to the same extent as the person to whom such assistance is provided.
.