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U.S. Code as of:
01/03/05
Section 13a-1. Enjoining or restraining violations
(a) Action to enjoin or restrain violations
Whenever it shall appear to the Commission that any registered
entity or other person has engaged, is engaging, or is about to
engage in any act or practice constituting a violation of any
provision of this chapter or any rule, regulation, or order
thereunder, or is restraining trading in any commodity for future
delivery, the Commission may bring an action in the proper district
court of the United States or the proper United States court of any
territory or other place subject to the jurisdiction of the United
States, to enjoin such act or practice, or to enforce compliance
with this chapter, or any rule, regulation or order thereunder, and
said courts shall have jurisdiction to entertain such actions:
Provided, That no restraining order (other than a restraining order
which prohibits any person from destroying, altering or disposing
of, or refusing to permit authorized representatives of the
Commission to inspect, when and as requested, any books and records
or other documents or which prohibits any person from withdrawing,
transferring, removing, dissipating, or disposing of any funds,
assets, or other property, and other than an order appointing a
temporary receiver to administer such restraining order and to
perform such other duties as the court may consider appropriate) or
injunction for violation of the provisions of this chapter shall be
issued ex parte by said court.
(b) Injunction or restraining order
Upon a proper showing a permanent or temporary injunction or
restraining order shall be granted without bond.
(c) Writs or other orders
Upon application of the Commission, the district courts of the
United States and the United States courts of any territory or
other place subject to the jurisdiction of the United States shall
also have jurisdiction to issue writs of mandamus, or orders
affording like relief, commanding any person to comply with the
provisions of this chapter or any rule, regulation, or order of the
Commission thereunder, including the requirement that such person
take such action as is necessary to remove the danger of violation
of this chapter or any such rule, regulation, or order: Provided,
That no such writ of mandamus, or order affording like relief,
shall be issued ex parte.
(d) Civil penalties
(1) In any action brought under this section, the Commission may
seek and the court shall have jurisdiction to impose, on a proper
showing, on any person found in the action to have committed any
violation a civil penalty in the amount of not more than the higher
of $100,000 or triple the monetary gain to the person for each
violation.
(2) If a person on whom such a penalty is imposed fails to pay
the penalty within the time prescribed in the court's order, the
Commission may refer the matter to the Attorney General who shall
recover the penalty by action in the appropriate United States
district court.
(e) Venue and process
Any action under this section may be brought in the district
wherein the defendant is found or is an inhabitant or transacts
business or in the district where the act or practice occurred, is
occurring, or is about to occur, and process in such cases may be
served in any district in which the defendant is an inhabitant or
wherever the defendant may be found.
(f) Action by Attorney General
In lieu of bringing actions itself pursuant to this section, the
Commission may request the Attorney General to bring the action.
(g) Notice to Attorney General of action brought by Commission
Where the Commission elects to bring the action, it shall inform
the Attorney General of such suit and advise him of subsequent
developments.
(h) Notice of investigations and enforcement actions
The Commission shall provide the Securities and Exchange
Commission with notice of the commencement of any proceeding and a
copy of any order entered by the Commission against any futures
commission merchant or introducing broker registered pursuant to
section 6f(a)(2) of this title, any floor broker or floor trader
exempt from registration pursuant to section 6f(a)(3) of this
title, any associated person exempt from registration pursuant to
section 6k(6) (!1) of this title, or any board of trade designated
as a contract market pursuant to section 7b-1 of this title.
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