7 U.S.C. § 13a — Nonenforcement of rules of government or

Page 120 TITLE 7—AGRICULTURE § 13a or data related to such receipts) or onions for fu- ture delivery shall be made on or subject to the rules of any board of trade in the United States. The terms used in this section shall have the same meaning as when used in the Commodity Exchange Act [7 U.S.C. 1 et seq.]. (b) Any person who shall violate the provisions of this section shall be deemed guilty of a mis- demeanor and upon conviction thereof be fined not more than $5,000. (Pub. L. 85–839, § 1, Aug. 28, 1958, 72 Stat. 1013; Pub. L. 111–203, title VII, § 721(e)(10), July 21, 2010, 124 Stat. 1672.) Editorial Notes REFERENCES IN TEXT The Commodity Exchange Act, referred to in subsec. (a), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to this chapter. For complete clas- sification of this Act to the Code, see section 1 of this title and Tables. CODIFICATION Section was not enacted as part of the Commodity Exchange Act which comprises this chapter. AMENDMENTS 2010—Subsec. (a). Pub. L. 111–203 inserted ‘‘motion picture box office receipts (or any index, measure, value, or data related to such receipts) or’’ after ‘‘sale of’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provi- sion of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation imple- menting such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title. EFFECTIVE DATE Pub. L. 85–839, § 2, Aug. 28, 1958, 72 Stat. 1013, provided that: ‘‘This Act [enacting this section] shall take effect thirty days after its enactment [Aug. 28, 1958].’’ § 13a. Nonenforcement of rules of government or other violations; cease and desist orders; fines and penalties; imprisonment; mis- demeanor; 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, offi- cer, 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 there- under, 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, or, in any case of manipulation or attempted manipulation in violation of section 9, 15, 13b, or 13(a)(2) of this title, a civil penalty of not more than $1,000,000 for each such violation. If such reg- istered entity, director, officer, agent, or em- ployee, after the entry of such a cease and desist order and the lapse of the period allowed for ap- peal 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, except that if the failure or re- fusal to obey or comply with the order involved any offense under section 13(a)(2) of this title, the registered entity, director, officer, agent, or employee shall be guilty of a felony and, on con- viction, shall be subject to penalties under sec- tion 13(a)(2) of this title. Each day during which such failure or refusal to obey such cease and desist order continues shall be deemed a sepa- rate offense. If the offending registered entity or other person upon whom such penalty is im- posed, 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 de- termining the amount of the money penalty as- sessed 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 materi- ally impair the ability of the registered entity to carry on its operations and duties. (Sept. 21, 1922, ch. 369, § 6b, as added June 15, 1936, ch. 545, § 9, 49 Stat. 1500; amended Pub. L. 90–258, § 18, Feb. 19, 1968, 82 Stat. 31; Pub. L. 93–463, title II, § 212(b), Oct. 23, 1974, 88 Stat. 1403; Pub. L. 95–405, § 14, Sept. 30, 1978, 92 Stat. 872; Pub. L. 102–546, title II, §§ 209(b)(5), 212(c), Oct. 28, 1992, 106 Stat. 3607, 3609; Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(14)], Dec. 21, 2000, 114 Stat. 2763, 2763A–409; Pub. L. 110–234, title XIII, § 13103(b), May 22, 2008, 122 Stat. 1433; Pub. L. 110–246, § 4(a), title XIII, § 13103(b), June 18, 2008, 122 Stat. 1664, 2195.) Editorial Notes CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2008—Pub. L. 110–246, § 13103(b), in first sentence, in- serted before period at end ‘‘, or, in any case of manip- ulation or attempted manipulation in violation of sec- tion 9, 15, 13b, or 13(a)(2) of this title, a civil penalty of not more than $1,000,000 for each such violation’’ and, in second sentence, inserted before period at end ‘‘, except that if the failure or refusal to obey or com- ply with the order involved any offense under section 13(a)(2) of this title, the registered entity, director, offi- cer, agent, or employee shall be guilty of a felony and, on conviction, shall be subject to penalties under sec- tion 13(a)(2) of this title’’. 2000—Pub. L. 106–554 substituted ‘‘registered entity’’ for ‘‘contract market’’ wherever appearing, ‘‘designa- tion or registration as set forth in sections 7 through Page 121 TITLE 7—AGRICULTURE § 13a–1 7a–2 of this title’’ for ‘‘designation as set forth in sec- tion 7 of this title’’ in first sentence, and ‘‘the ability of the registered entity’’ for ‘‘the contract market’s ability’’ in last sentence. 1992—Pub. L. 102–546 substituted ‘‘section 8(b) of this title’’ for ‘‘paragraph (a) of section 8 of this title’’, sub- stituted ‘‘$500,000’’ for ‘‘$100,000’’ in two places, and in last sentence struck out ‘‘the appropriateness of such penalty to the net worth of the offending person and’’ after ‘‘Commission shall consider’’. 1978—Pub. L. 95–405 inserted ‘‘on the record’’ after ‘‘notice and hearing’’. 1974—Pub. L. 93–463 inserted provision for assessment of a civil penalty of not more than $100,000 for each vio- lation, substituted ‘‘not more than $100,000’’ for ‘‘not less than $500 nor more than $10,000’’ as permissible range of fines imposed, inserted provisions for enforce- ment of a penalty, and substituted ‘‘orders of the Com- mission’’ for ‘‘orders of the Secretary of Agriculture or the commission’’. 1968—Pub. L. 90–258 amended section to clarify appli- cation only to boards of trade designated as contract markets, to include as grounds for cease and desist or- ders failure to enforce the market’s rules of govern- ment made a condition of its designation and violation of rules or regulations of the commission or orders of the Secretary, and to authorize such orders in conjunc- tion with a suspension or revocation of designation as a contract market rather than in lieu of suspension or revocation. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–405 effective Oct. 1, 1978, see section 28 of Pub. L. 95–405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93–463, see section 418 of Pub. L. 93–463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90–258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90–258, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. § 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, regula- tion, or order thereunder, or is restraining trad- ing in any commodity for future delivery or any swap, 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 dis- posing of, or refusing to permit authorized rep- resentatives 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, dis- sipating, or disposing of any funds, assets, or other property, and other than an order appoint- ing a temporary receiver to administer such re- straining order and to perform such other duties as the court may consider appropriate) or in- junction 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 tem- porary injunction or restraining order shall be granted without bond. (c) Writs or other orders Upon application of the Commission, the dis- trict 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, com- manding any person to comply with the provi- sions of this chapter or any rule, regulation, or order of the Commission thereunder, including the requirement that such person take such ac- tion as is necessary to remove the danger of vio- lation of this chapter or any such rule, regula- tion, or order: Provided, That no such writ of mandamus, or order affording like relief, shall be issued ex parte. (d) Civil penalties (1) IN GENERAL.—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 ac- tion to have committed any violation— (A) a civil penalty in the amount of not more than the greater of $100,000 or triple the monetary gain to the person for each viola- tion; or (B) in any case of manipulation or at- tempted manipulation in violation of section 9, 15, 13b, or 13(a)(2) of this title, a civil pen- alty in the amount of not more than the great- er of $1,000,000 or triple the monetary gain to the person for each violation. (2) If a person on whom such a penalty is im- posed 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. (3) EQUITABLE REMEDIES.—In any action brought under this section, the Commission may seek, and the court may impose, on a proper showing, on any person found in the action to have committed any violation, equitable rem- edies including— (A) restitution to persons who have sus- tained losses proximately caused by such vio- lation (in the amount of such losses); and (B) disgorgement of gains received in con- nection with such violation.