(Sec. 3) Amends Federal bankruptcy law to make certain debts that arise under claims relating to the violation of Federal or State securities laws or common law fraud in connection with the purchase or sale of any security and that result from any Federal or State court order, settlement agreement, or administrative order or penalty non-dischargeable in bankruptcy.
(Sec. 4) Amends the Federal judicial code to authorize a private right of action that involves a securities fraud-related claim to be brought not later than the earlier of five years after the date of the alleged violation or two years after its discovery.
(Sec. 5) Directs the United States Sentencing Commission to review and amend the Federal sentencing guidelines to ensure that the offense levels, existing enhancements, and/or offense characteristics are sufficient to deter and punish violations involving: (1) obstruction of justice; (2) record destruction; (3) fraud when the number of victims adversely involved is significantly greater than 50 or when it endangers the solvency or financial security of a substantial number of victims; and (4) organizational criminal misconduct.
(Sec. 6) Prohibits any company with securities registered on a national security exchange (publicly traded company) from discharging or otherwise discriminating against an employee because of any lawful act by the employee to: (1) disclose information or otherwise assist in an investigation by Federal regulators, Congress, or supervisors of prohibited conduct; or (2) file or participate in a proceeding relating to fraud against shareholders. Allows an aggrieved employee to: (1) file a complaint with the Secretary of Labor; or (2) if the Secretary has not issued a final decision within 180 days and there is no showing that such delay is due to the bad faith of the claimant, to bring an action in the appropriate U.S. district court. Delineates remedies, including reinstatement, back pay, and compensatory damages, if the claimant prevails.
(Sec. 7) Provides that any person who defrauds shareholders of publicly traded companies shall be fined and/or imprisoned for up to ten years.