Laws: Cases and Codes : U.S. Code : Title 7 : Section 13a


   
U.S. Code as of: 01/03/05
Section 13a. Nonenforcement of rules of government or other violations; cease and desist orders; fines and penalties; imprisonment; misdemeanor; separate offenses

      If any registered entity is not enforcing or has not enforced its
    rules of government made a condition of its designation or
    registration as set forth in sections 7 through 7a-2 of this title,
    or if any registered entity, or any director, officer, agent, or
    employee of any registered entity otherwise is violating or has
    violated any of the provisions of this chapter or any of the rules,
    regulations, or orders of the Commission thereunder, the Commission
    may, upon notice and hearing on the record and subject to appeal as
    in other cases provided for in section 8(b) of this title, make and
    enter an order directing that such registered entity, director,
    officer, agent, or employee shall cease and desist from such
    violation, and assess a civil penalty of not more than $500,000 for
    each such violation. If such registered entity, director, officer,
    agent, or employee, after the entry of such a cease and desist
    order and the lapse of the period allowed for appeal of such order
    or after the affirmance of such order, shall fail or refuse to obey
    or comply with such order, such registered entity, director,
    officer, agent, or employee shall be guilty of a misdemeanor and,
    upon conviction thereof, shall be fined not more than $500,000 or
    imprisoned for not less than six months nor more than one year, or
    both. Each day during which such failure or refusal to obey such
    cease and desist order continues shall be deemed a separate
    offense. If the offending registered entity or other person upon
    whom such penalty is imposed, after the lapse of the period allowed
    for appeal or after the affirmance of such penalty, shall fail to
    pay such penalty, the Commission shall refer the matter to the
    Attorney General who shall recover such penalty by action in the
    appropriate United States district court. In determining the amount
    of the money penalty assessed under this section, the Commission
    shall consider the gravity of the offense, and in the case of a
    registered entity shall further consider whether the amount of the
    penalty will materially impair the ability of the registered entity
    to carry on its operations and duties.



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