15 U.S.C. § 78jjj — Prohibited acts

(a) Failure to pay assessment, etc. — If a SIPC member doesn't file a required report or doesn't pay an assessment owed under this chapter, and doesn't fix that within five days of getting written notice from SIPC (by filing the report or paying, plus interest and penalties), it becomes illegal for that member to keep doing business as a broker or dealer — unless the SEC specifically allows it. If the member disputes owing all or part of the amount, it can pay the full amount and then sue SIPC in federal district court to get back what it says it doesn't owe. (b) Engaging in business after appointment of trustee or initiation of direct payment procedure — It's illegal for a broker or dealer to keep doing business after a trustee has been appointed for it, or after a direct payment procedure has started for it, unless the SEC decides that's in the public interest. The SEC can bar or suspend, for any length of time, an officer, director, general partner, 10%-or-more owner, or controlling person of such a firm from working with any broker or dealer — but only after notice and a hearing, and only if the SEC finds that's in the public interest. (c) Concealment of assets; false statements or claims — (1) It's a crime to, in connection with a liquidation or direct payment procedure: use any scheme to defraud; engage in fraud or deceit; or, with fraudulent intent, hide or transfer estate property, make a false statement, use a false claim, receive property from the debtor, exchange money or property for acting or not acting, falsify records about the debtor's property, or withhold documents about the debtor's property or affairs from someone entitled to them. This is punishable by a fine up to $250,000, prison up to five years, or both. (2) It's also a crime to steal, embezzle, or fraudulently convert SIPC's money, securities, or other assets to your own use, or to otherwise defraud SIPC or a trustee — punishable the same way. (d) Misrepresentation of SIPC membership or protection — (1) It's illegal to falsely claim — through any means, including online — with actual knowledge the claim is false and intent to deceive or harm someone, that you or someone else is a SIPC member, or that an account or person is protected by SIPC. Violators are liable for resulting damages and face a fine up to $250,000 or up to five years in prison. (2) Courts can grant temporary or permanent injunctions to stop this. The injunction can be served and enforced anywhere in the U.S., and the court that issued it must send a certified copy of the case file to another court if that court is enforcing it.