15 U.S.C. § 78aa — Jurisdiction of offenses and suits

submitted 92 years ago by ch. 404 to r/title-15-COMMERCE-AND-TRADE · 392 words · no verdicts yet

in plain englishAI-generated · not legal advice

Federal courts have sole power over offenses and lawsuits under this Exchange Act chapter. A suit may be filed where the violation happened or where the defendant is found, lives, or does business. Federal courts also reach fraud with steps taken in the U.S. or effects felt in the U.S.

(a) Exclusive federal jurisdiction; venue. Federal district courts (and territorial courts) have exclusive jurisdiction over violations of this chapter and its rules, and over all suits in equity or actions at law to enforce a liability or duty created by this chapter or its rules — unlike the Securities Act, where state courts share jurisdiction, here the federal courts' power is exclusive. A criminal case may be brought in the district where the violating act or transaction occurred. A civil suit to enforce a liability or duty, or to stop (enjoin) a violation, may be brought in that same district, or wherever the defendant is found, lives, or does business; the defendant can be served with process in any other district where they're found. In an SEC-brought case, a subpoena for a witness or documents can be served anywhere in the U.S., and a specific Federal Rule of Civil Procedure limit (Rule 45(c)(3)(A)(ii)) doesn't apply to it. Judgments can be appealed under specific federal review statutes. No court costs are charged for or against the SEC in Supreme Court or other proceedings under this chapter. (b) Extraterritorial jurisdiction. Federal courts also have jurisdiction over SEC or U.S. government cases alleging a violation of this chapter's antifraud provisions that involves either: conduct inside the U.S. that is a significant step toward the violation, even if the transaction itself happens abroad and involves only foreign investors; or conduct outside the U.S. that has a foreseeable, substantial effect inside the U.S.

the actual law source: uscode.house.gov ↗public domain

(a) In general

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 have exclusive jurisdiction of violations of this chapter or the rules and regulations thereunder, and of all suits in equity and actions at law brought to enforce any liability or duty created by this chapter or the rules and regulations thereunder. Any criminal proceeding may be brought in the district wherein any act or transaction constituting the violation occurred. Any suit or action to enforce any liability or duty created by this chapter or rules and regulations thereunder, or to enjoin any violation of such chapter or rules and regulations, may be brought in any such district or in the district wherein the defendant is found or is an inhabitant or transacts business, and process in such cases may be served in any other district of which the defendant is an inhabitant or wherever the defendant may be found. In any action or proceeding instituted by the Commission under this chapter in a United States district court for any judicial district, a subpoena issued to compel the attendance of a witness or the production of documents or tangible things (or both) at a hearing or trial may be served at any place within the United States. Rule 45(c)(3)(A)(ii) of the Federal Rules of Civil Procedure shall not apply to a subpoena issued under the preceding sentence. Judgments and decrees so rendered shall be subject to review as provided in sections 1254, 1291, 1292, and 1294 of title 28. No costs shall be assessed for or against the Commission in any proceeding under this chapter brought by or against it in the Supreme Court or such other courts.

(b) Extraterritorial jurisdiction

The district courts of the United States and the United States courts of any Territory shall have jurisdiction of an action or proceeding brought or instituted by the Commission or the United States alleging a violation of the antifraud provisions of this chapter involving—

(1)

conduct within the United States that constitutes significant steps in furtherance of the violation, even if the securities transaction occurs outside the United States and involves only foreign investors; or

(2)

conduct occurring outside the United States that has a foreseeable substantial effect within the United States.

Source credit: (June 6, 1934, ch. 404, title I, § 27, 48 Stat. 902; June 25, 1936, ch. 804, 49 Stat. 1921; June 25, 1948, ch. 646, § 32(b), 62 Stat. 991; May 24, 1949, ch. 139, § 127, 63 Stat. 107; Pub. L. 100–181, title III, § 326, Dec. 4, 1987, 101 Stat. 1259; Pub. L. 111–203, title IX, §§ 929E(b), 929P(b)(2), July 21, 2010, 124 Stat. 1853, 1865.)

history & why it existsrecord from the source credit

1934Enacted · Act of June 6, 1934, ch. 404 · 48 Stat. 902
1936Amended · Act of June 25, 1936, ch. 804 · 49 Stat. 1921
1948Amended · Act of June 25, 1948, ch. 646 · 62 Stat. 991
1949Amended · Act of May 24, 1949, ch. 139 · 63 Stat. 107
1987Amended · Pub. L. 100-181 · 101 Stat. 1259
2010Amended · Pub. L. 111-203 · 124 Stat. 1853, 1865

A history note hasn’t been published yet. The record shows enactment by ch. 404 on 1934-06-06.

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