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S. 1985 107th Congress Senate

Microcap Fraud Prevention Act of 2001

Official title: A bill to allow Federal securities enforcement actions to be predicated on State securities enforcement actions, to prevent migration of rogue securities broke… Show full official titleShow less

Official title: A bill to allow Federal securities enforcement actions to be predicated on State securities enforcement actions, to prevent migration of rogue securities brokers between and among financial services industries, and for other purposes.

Introduced: March 5, 2002 Introduced by: Susan M. Collins Republican · Maine See on congress.gov
Finance and Financial Sector BrokersCommerceCorporation directorsCrime and Law Enforcement
More subjectsShow fewer subjects
Economics and Public FinanceForeign Trade and International FinanceForeign banks and bankingFraudGovernment Operations and PoliticsGovernment paperworkGovernment securitiesInjunctionsInsurance companiesInvestment advisersLawLicensesMutual fundsPenny stocksRestrictive trade practicesSecurities fraudSecurities industrySecurities regulation
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This bill died when the 107th Congress ended
It never became law before the 107th Congress (2001–2002) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 3 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Mar 5, 2002
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Mar 5, 2002
Sponsor introductory remarks on measure. (CR S1537-1538)
Mar 5, 2002
Introduced in Senate
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 Latest action March 5, 2002

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

 Plain-English summary Congressional Research Service
Microcap Fraud Prevention Act of 2001 - Amends the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, and the Investment Company Act of 1940 to direct the Securities and Exchange Commission (SEC) to enjoin the activities of any broker, dealer, or investment adviser who: (1) is subject to an SEC order barring or suspending such person's right to be associated with a broker or dealer; (2) has been found by a foreign financial regulatory authority to have violated foreign statutes or regulations governing transactions in securities, banking, and insurance; (3) failed reasonably to supervise with a view to preventing securities, banking, or insurance violations; or (4) is subject to any order of a State regulatory authority barring such person from either engaging in the business of securities, insurance, or banking, or from association with an entity engaged in such businesses. Includes both municipal, and government securities dealers and brokers within the sweep of such regulation.

Amends the Securities Exchange Act of 1934 to: (1) extend the penny stock bar to any noncovered security; and (2) make it unlawful for any person who is the subject of certain enforcement sanctions to serve as officer, director, or participant in any offering involving a noncovered security.

Authorizes a court to prohibit violators of certain SEC anti-fraud rules from participating in an offering of a noncovered security.

Bars persons subject to specified court orders from serving as officers, directors, or participants in any offering involving a noncovered security.

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
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APA
U.S. Congress. (2026). S. 1985: Microcap Fraud Prevention Act of 2001. 107th Congress. Open America. https://openamerica.io/bill/107-S-1985/
MLA
"S. 1985: Microcap Fraud Prevention Act of 2001." 107th Congress, 2026, Open America, https://openamerica.io/bill/107-S-1985/.
Bluebook (legal)
S. 1985, 107th Cong. (2026), https://openamerica.io/bill/107-S-1985/.
Markdown link
[S. 1985: Microcap Fraud Prevention Act of 2001](https://openamerica.io/bill/107-S-1985/)
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