15 U.S.C. § 80b–14 — Jurisdiction of offenses and suits

submitted 86 years ago by ch. 686 to r/title-15-COMMERCE-AND-TRADE · 394 words · no verdicts yet

in plain englishAI-generated · not legal advice

Federal district courts can hear criminal and civil cases arising under this law, alongside state courts for civil matters. The SEC can serve subpoenas anywhere in the country in its own cases, and neither side pays court costs in Commission proceedings. Courts also reach fraud under section 80b-6 that happens partly overseas, if it involves real steps taken in the U.S. or a real effect felt there.

(a) In general. Federal district courts, and the courts of U.S. territories, can hear cases about violations of this subchapter or its rules, regulations, or orders. They also share jurisdiction with state and territorial courts over lawsuits to enforce a duty this subchapter creates, or to stop a violation of it. A criminal case can be brought in the district where the violation happened. A civil suit can be brought there too, or in any district where the defendant lives or does business; the defendant can be served with process anywhere they live, do business, or can be found. When the Commission brings a case in any federal district, it can serve a subpoena — to make a witness show up or produce documents — anywhere in the United States. The usual limit in Federal Rule of Civil Procedure 45(c)(3)(A)(ii) doesn't apply to that subpoena. Judgments and decrees in these cases can be reviewed under sections 1254, 1291, 1292, and 1294 of title 28. And no one has to pay court costs for or against the Commission in a case under this subchapter. (b) Extraterritorial jurisdiction. Federal district and territorial courts also have jurisdiction over a case the Commission or the United States brings alleging a violation of section 80b-6 (the anti-fraud provision), if either of two things is true: (1) someone took significant steps within the United States to further the violation, even if a foreign adviser committed it and only foreign investors were involved; or (2) conduct happened outside the United States but had a foreseeable, substantial effect inside the United States.

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 jurisdiction of violations of this subchapter or the rules, regulations, or orders thereunder, and, concurrently with State and Territorial courts, of all suits in equity and actions at law brought to enforce any liability or duty created by, or to enjoin any violation of this subchapter or the rules, regulations, or orders 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, or to enjoin any violation of this subchapter or rules, regulations, or orders thereunder, may be brought in any such district or in the district wherein the defendant is an inhabitant or transacts business, and process in such cases may be served in any district of which the defendant is an inhabitant or transacts business or wherever the defendant may be found. In any action or proceeding instituted by the Commission under this subchapter 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 subchapter brought by or against the Commission in any court.

(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 section 80b–6 of this title involving—

(1)

conduct within the United States that constitutes significant steps in furtherance of the violation, even if the violation is committed by a foreign adviser 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: (Aug. 22, 1940, ch. 686, title II, § 214, 54 Stat. 856; Pub. L. 100–181, title VII, § 707, Dec. 4, 1987, 101 Stat. 1264; Pub. L. 101–429, title IV, § 403, Oct. 15, 1990, 104 Stat. 951; Pub. L. 111–203, title IX, §§ 929E(d), 929P(b)(3), July 21, 2010, 124 Stat. 1853, 1865.)

history & why it existsrecord from the source credit

1940Enacted · Act of Aug. 22, 1940, ch. 686 · 54 Stat. 856
1987Amended · Pub. L. 100-181 · 101 Stat. 1264
1990Amended · Pub. L. 101-429 · 104 Stat. 951
2010Amended · Pub. L. 111-203 · 124 Stat. 1853, 1865

A history note hasn’t been published yet. The record shows enactment by ch. 686 on 1940-08-22.

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