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U.S. Code as of:
01/03/05
Section 13. Violations generally; punishment; costs of prosecution
(a) Felonies generally
It shall be a felony punishable by a fine of not more than
$1,000,000 (or $500,000 in the case of a person who is an
individual) or imprisonment for not more than five years, or both,
together with the costs of prosecution, for:
(1) Any person registered or required to be registered under
this chapter, or any employee or agent thereof, to embezzle,
steal, purloin, or with criminal intent convert to such person's
use or to the use of another, any money, securities, or property
having a value in excess of $100, which was received by such
person or any employee or agent thereof to margin, guarantee, or
secure the trades or contracts of any customer or accruing to
such customer as a result of such trades or contracts or which
otherwise was received from any customer, client, or pool
participant in connection with the business of such person. The
word "value" as used in this paragraph means face, par, or market
value, or cost price, either wholesale or retail, whichever is
greater.
(2) Any person to manipulate or attempt to manipulate the price
of any commodity in interstate commerce, or for future delivery
on or subject to the rules of any registered entity, or to corner
or attempt to corner any such commodity or knowingly to deliver
or cause to be delivered for transmission through the mails or
interstate commerce by telegraph, telephone, wireless, or other
means of communication false or misleading or knowingly
inaccurate reports concerning crop or market information or
conditions that affect or tend to affect the price of any
commodity in interstate commerce, or knowingly to violate the
provisions of section 6, section 6b, subsections (a) through (e)
of subsection (!1) 6c, section 6h, section 6o(1), or section 23
of this title.
(3) Any person knowingly to make, or cause to be made, any
statement in any application, report, or document required to be
filed under this chapter or any rule or regulation thereunder or
any undertaking contained in a registration statement required
under this chapter, or by any registered entity or registered
futures association in connection with an application for
membership or participation therein or to become associated with
a member thereof, which statement was false or misleading with
respect to any material fact, or knowingly to omit any material
fact required to be stated therein or necessary to make the
statements therein not misleading.
(4) Any person willfully to falsify, conceal, or cover up by
any trick, scheme, or artifice a material fact, make any false,
fictitious, or fraudulent statements or representations, or make
or use any false writing or document knowing the same to contain
any false, fictitious, or fraudulent statement or entry to a
registered entity, board of trade, or futures association
designated or registered under this chapter acting in furtherance
of its official duties under this chapter.
(5) Any person willfully to violate any other provision of this
chapter, or any rule or regulation thereunder, the violation of
which is made unlawful or the observance of which is required
under the terms of this chapter, but no person shall be subject
to imprisonment under this paragraph for the violation of any
rule or regulation if such person proves that he had no knowledge
of such rule or regulation.
(b) Suspension of convicted felons
Any person convicted of a felony under this section shall be
suspended from registration under this chapter and shall be denied
registration or reregistration for five years or such longer period
as the Commission may determine, and barred from using, or
participating in any manner in, any market regulated by the
Commission for five years or such longer period as the Commission
shall determine, on such terms and conditions as the Commission may
prescribe, unless the Commission determines that the imposition of
such suspension, denial of registration or reregistration, or
market bar is not required to protect the public interest. The
Commission may upon petition later review such disqualification and
market bar and for good cause shown reduce the period thereof.
(c) Transactions by Commissioners and Commission employees
prohibited
It shall be a felony punishable by a fine of not more than
$500,000 or imprisonment for not more than five years, or both,
together with the costs of prosecution, for any Commissioner of the
Commission or any employee or agent thereof, to participate,
directly or indirectly, in any transaction in commodity futures or
any transaction of the character of or which is commonly known to
the trade as an "option", "privilege", "indemnity", "bid", "offer",
"put", "call", "advance guaranty", or "decline guaranty", or any
transaction for the delivery of any commodity under a standardized
contract commonly known to the trade as a margin account, margin
contract, leverage account, or leverage contract, or under any
contract, account, arrangement, scheme, or device that the
Commission determines serves the same function or functions as such
a standardized contract, or is marketed or managed in substantially
the same manner as such a standardized contract, or for any such
person to participate, directly or indirectly, in any investment
transaction in an actual commodity if nonpublic information is used
in the investment transaction, if the investment transaction is
prohibited by rule or regulation of the Commission, or if the
investment transaction is effected by means of any instrument
regulated by the Commission. The foregoing prohibitions shall not
apply to any transaction or class of transactions that the
Commission, by rule or regulation, has determined would not be
contrary to the public interest or otherwise inconsistent with the
purposes of this subsection.
(d) Use of information by Commissioners and Commission employees
prohibited
It shall be a felony punishable by a fine of not more than
$500,000 or imprisonment for not more than five years, or both,
together with the costs of prosecution - (1) for any Commissioner
of the Commission or any employee or agent thereof who, by virtue
of his employment or position, acquires information which may
affect or tend to affect the price of any commodity futures or
commodity and which information has not been made public to impart
such information with intent to assist another person, directly or
indirectly, to participate in any transaction in commodity futures,
any transaction in an actual commodity, or in any transaction of
the character of or which is commonly known to the trade as an
"option", "privilege", "indemnity", "bid", "offer", "put", "call",
"advance guaranty", or "decline guaranty", or in any transaction
for the delivery of any commodity under a standardized contract
commonly known to the trade as a margin account, margin contract,
leverage account, or leverage contract, or under any contract,
account, arrangement, scheme, or device that the Commission
determines serves the same function or functions as such a
standardized contract, or is marketed or managed in substantially
the same manner as such a standardized contract; and (2) for any
person to acquire such information from any Commissioner of the
Commission or any employee or agent thereof and to use such
information in any transaction in commodity futures, any
transaction in an actual commodity, or in any transaction of the
character of or which is commonly known to the trade as an
"option", "privilege", "indemnity", "bid", "offer", "put", "call",
"advance guaranty", or "decline guaranty", or in any transaction
for the delivery of any commodity under a standardized contract
commonly known to the trade as a margin account, margin contract,
leverage account, or leverage contract, or under any contract,
account, arrangement, scheme, or device that the Commission
determines serves the same function or functions as such a
standardized contract, or is marketed or managed in substantially
the same manner as such a standardized contract.
(e) Redesignated (d)
(f) Insider trading prohibited
It shall be a felony for any person -
(1) who is an employee, member of the governing board, or
member of any committee of a board of trade, registered entity,
or registered futures association, in violation of a regulation
issued by the Commission, willfully and knowingly to trade for
such person's own account, or for or on behalf of any other
account, in contracts for future delivery or options thereon on
the basis of, or willfully and knowingly to disclose for any
purpose inconsistent with the performance of such person's
official duties as an employee or member, any material nonpublic
information obtained through special access related to the
performance of such duties.(!2)
(2) willfully and knowingly to trade for such person's own
account, or for or on behalf of any other account, in contracts
for future delivery or options thereon on the basis of any
material nonpublic information that such person knows was
obtained in violation of paragraph (1) from an employee, member
of the governing board, or member of any committee of a board of
trade, registered entity, or registered futures association.
Such felony shall be punishable by a fine of not more than
$500,000, plus the amount of any profits realized from such trading
or disclosure made in violation of this subsection, or imprisonment
for not more than five years, or both, together with the costs of
prosecution.
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