Liability for Aiding and Abetting Securities Violations Act of 2009 (Introduced in Senate)

S 1551 IS

111th CONGRESS

1st Session

S. 1551
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.

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.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Liability for Aiding and Abetting Securities Violations Act of 2009′.

SEC. 2. 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–

(1) in the subsection heading, by striking `Prosecution of’ and inserting `Actions Against’;

(2) by striking `For purposes’ and inserting the following:

`(1) ACTIONS BROUGHT BY COMMISSION- For purposes’;

(3) in paragraph (1), as so designated, by inserting `or recklessly’ after `knowingly’; and

(4) by adding at the end the following:

`(2) 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.’.
http://thomas.loc.gov/cgi-bin/query/z?c111:S.1551: