II
111th CONGRESS
1st Session
S. 1551
IN THE SENATE OF THE UNITED STATES
July 30, 2009
Mr. Specter (for himself, Mr. Reed, and Mr. Kaufman) introduced the following bill; which was read twice and referred to the Committee on the Judiciary
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 2009
.
Private civil action 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.
.