§ 13a-1. — Enjoining or restraining violations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC13a-1]
TITLE 7--AGRICULTURE
CHAPTER 1--COMMODITY EXCHANGES
Sec. 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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\1\ So in original. Probably should refer to the second par. (5) of
section 6k.
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(Sept. 21, 1922, ch. 369, Sec. 6c, as added Pub. L. 93-463, title II,
Sec. 211, Oct. 23, 1974, 88 Stat. 1402; amended Pub. L. 97-444, title
II, Sec. 220, Jan. 11, 1983, 96 Stat. 2308; Pub. L. 99-641, title I,
Sec. 104, Nov. 10, 1986, 100 Stat. 3557; Pub. L. 102-546, title II,
Sec. 221, Oct. 28, 1992, 106 Stat. 3614; Pub. L. 106-554, Sec. 1(a)(5)
[title I, Sec. 123(a)(15), title II, Sec. 253(c)], Dec. 21, 2000, 114
Stat. 2763, 2763A-409, 2763A-449.)
Amendments
2000--Subsec. (a). Pub. L. 106-554, Sec. 1(a)(5) [title I,
Sec. 123(a)(15)], substituted ``registered entity'' for ``contract
market''.
Subsec. (h). Pub. L. 106-554, Sec. 1(a)(5) [title II, Sec. 253(c)],
added subsec. (h).
1992--Pub. L. 102-546 designated first, second, and third sentences
as subsecs. (a) to (c), respectively, added subsec. (d), and designated
fourth, fifth, and sixth sentences as subsecs. (e) to (g), respectively.
1986--Pub. L. 99-641 inserted ``, 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''.
1983--Pub. L. 97-444 inserted ``(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)''
after ``Provided, That no restraining order''.
Effective Date of 1983 Amendment
Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239
of Pub. L. 97-444, set out as a note under section 2 of this title.
Effective Date
For effective date of section, see section 418 of Pub. L. 93-463,
set out as an Effective Date of 1974 Amendment note under section 2 of
this title.
Section Referred to in Other Sections
This section is referred to in section 2 of this title.
