Sec. 36b-72. (Formerly Sec. 36-515). Violations. Enforcement powers of commissioner. Remedies.
Sec. 36b-72. (Formerly Sec. 36-515). Violations. Enforcement powers of commissioner. Remedies. (a) Whenever it appears to the commissioner, after an investigation, that any person or persons have violated, are violating or are about to violate any
of the provisions of sections 36b-60 to 36b-80, inclusive, or any regulation, rule or order
adopted or issued under said sections or that a further sale or offer to sell would constitute
a violation of said sections, or any such regulation, rule or order, the commissioner may
order the person or persons to cease and desist from the violations of the provisions of
said sections or any such regulations, rules or orders or from further sale or offering to
sell business opportunities constituting or which would constitute a violation of the
provisions of said sections or any such regulations, rules or orders. After any such order
is issued, the person or persons named in such order may, within fourteen days after
receipt of the order, file a written request for a hearing. Such hearing shall be held in
accordance with the provisions of chapter 54.
(b) (1) Whenever the commissioner finds as the result of an investigation that any
person or persons have violated any of the provisions of sections 36b-60 to 36b-80,
inclusive, or any regulation, rule or order adopted or issued under said sections, the
commissioner may send a notice to such person or persons by certified mail, return
receipt requested, or by any express delivery carrier that provides a dated delivery receipt. Any such notice shall include: (A) A reference to the title, chapter, regulation,
rule or order alleged to have been violated; (B) a short and plain statement of the matter
asserted or charged; (C) the maximum fine that may be imposed for such violation; and
(D) the time and place for the hearing. Such hearing shall be fixed for a date not earlier
than fourteen days after the notice is mailed.
(2) The commissioner shall hold a hearing upon the charges made unless such person or persons fail to appear at the hearing. Such hearing shall be held in accordance
with the provisions of chapter 54. After the hearing if the commissioner finds that the
person or persons have violated any of the provisions of sections 36b-60 to 36b-80,
inclusive, or any regulation, rule or order adopted or issued under said sections, the
commissioner may, in addition to any other remedy authorized by said sections, order
that a fine not exceeding one hundred thousand dollars per violation be imposed upon
such person or persons. If such person or persons fail to appear at the hearing, the
commissioner may, as the facts require, order that a fine not exceeding one hundred
thousand dollars per violation be imposed upon such person or persons. The commissioner shall send a copy of any order issued pursuant to this subsection by certified mail,
return receipt requested, or by any express delivery carrier that provides a dated delivery
receipt, to any person or persons named in such order.
(c) Whenever it appears to the commissioner that any person or persons have violated, are violating or are about to violate any of the provisions of sections 36b-60 to
36b-80, inclusive, or any regulation, rule or order adopted or issued under said sections,
or that the further sale or offer to sell would constitute a violation of said sections, or
any such regulation, rule or order, the commissioner may in addition to any other remedy
authorized by said sections: (1) Bring an action in the superior court for the judicial
district of Hartford to enjoin the acts or practices constituting a violation and to enforce
compliance with said sections or any such regulation, rule or order. Upon a proper
showing, a permanent or temporary injunction, restraining order or writ of mandamus
shall be granted and a receiver or conservator may be appointed for the defendant or
the defendant's assets. The court shall not require the commissioner to post a bond; (2)
seek a court order imposing a fine not to exceed one hundred thousand dollars per
violation against any person found to have violated any order issued by the commissioner; or (3) in addition to any other remedies provided by this section, apply to the
superior court for the judicial district of Hartford for an order of restitution whereby the
defendants in such action shall be ordered to make restitution of those sums shown by
the commissioner to have been obtained by them in violation of any of the provisions
of said sections or any such regulation, rule or order, plus interest at the rate set forth
in section 37-3a. Such restitution shall, at the option of the court, be payable to the
receiver or conservator appointed pursuant to subdivision (1) of this subsection, or directly to the persons whose assets were obtained in violation of any provision of said
sections or any such regulation, rule or order.
(d) Any time after the issuance of an order or notice provided for in subsection (a)
or (b) of this section, the commissioner may accept an agreement by any respondent
named in such order or notice to enter into a written consent order in lieu of an adjudicative hearing. The acceptance of a consent order shall be within the complete discretion
of the commissioner. The consent order provided for in this subsection shall contain (1)
an express waiver of the right to seek judicial review or otherwise challenge or contest
the validity of such order or notice; (2) a provision that such order or notice may be
used in construing the terms of the consent order; (3) a statement that such consent order
shall become final when issued; (4) a specific assurance that none of the violations
alleged in such order or notice shall occur in the future; (5) such other terms and conditions as are necessary to further the purposes and policies of sections 36b-60 to 36b-80, inclusive; (6) the signature of each of the individual respondents evidencing such
respondent's consent; and (7) the signature of the commissioner or of the commissioner's authorized representative.
(P.A. 79-458, S. 13, 19; P.A. 80-483, S. 110, 169, 186; P.A. 81-48, S. 1, 2; P.A. 87-353; P.A. 88-230, S. 1, 12; P.A.
90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 95-220, S. 4-6; P.A. 97-22, S. 17; P.A. 01-48, S. 5; P.A. 06-75, S. 1.)
History: P.A. 80-483 replaced "Hartford county" with "judicial district of Hartford-New Britain" in Subdiv. (2); P.A.
81-48 amended Subdiv. (4) to permit interest at the rate set forth in Sec. 37-3a to be added to any restitution and to allow
restitution to be paid directly to the person whose assets were illegally obtained; P.A. 87-353 restructured the section by
dividing it into Subsecs., made technical changes in Subsecs. (a), (c) and (d), added provisions in Subsec. (b)(1) re notice
requirements for hearings, and increased the fine the commissioner may impose to $10,000; P.A. 88-230 replaced "judicial
district of Hartford-New Britain" with "judicial district of Hartford", effective September 1, 1991; P.A. 90-98 changed
the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 93-142 changed the effective date
of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14, 1993; Sec. 36-515 transferred to Sec.
36b-72 in 1995; P.A. 95-220 changed the effective date of P.A. 88-230 from September 1, 1996, to September 1, 1998,
effective July 1, 1995; P.A. 97-22 made technical changes; P.A. 01-48 amended Subsec. (b) by adding references to express
delivery, replacing "civil penalty" with "fine" and making technical changes for purposes of gender neutrality; P.A. 06-75 amended Subsec. (a) to require commissioner to conduct investigation before determining violation, to extend commissioner's cease and desist authority to persons who have violated the act or any regulation, rule or order under the act and
to make technical changes, amended Subsec. (b)(1) to authorize commissioner to send notice upon finding as result of
investigation that any person has violated the act or any such regulation, rule or order, deleting reference to whenever "it
appears to" commissioner, amended Subsec. (b)(2) to make a technical change and increase maximum fine from $10,000
per violation to $100,000 per violation, amended Subsec. (c) to extend commissioner's authority to bring action in superior
court to persons who have violated the act or any such regulation, rule or order, and to make conforming and technical
changes, and amended Subsec. (d) to insert references to "notice", to substitute "respondent named in such order or notice"
for "person charged with violating any provision of sections 36b-60 to 36b-80, inclusive,", to eliminate provision re
presiding officer designated by commissioner and to make technical changes.