§ 7-11-602 - Enforcement.
SECTION 7-11-602
§ 7-11-602 Enforcement. – (a) If the director reasonably believes, whether or not based upon aninvestigation conducted under § 7-11-601, that any person has engaged, isengaging, or is about to engage in any act or practice constituting a violationof any provision of this chapter or any rule or order under this chapter, thedirector, in addition to any specific power granted under this chapter andsubject to compliance with the requirements of § 7-11-712, may issue,without a prior hearing, an order against the person or persons engaged in theprohibited activities, directing them to desist and refrain from furtherillegal activity. The cease and desist order shall state the section of thischapter or rule or order of the director under this chapter which the directorreasonably believes has been or is being violated.
(b) If the director reasonably believes, whether or not basedon an investigation conducted under § 7-11-601, that a person has violatedthis chapter or a rule or order of the director under this chapter, thedirector may, in addition to any specific power granted under this chapter,after notice and hearing in an administrative proceeding unless the right tonotice and hearing is waived by the person against whom the sanction is imposed:
(1) Issue a cease and desist order against the person;
(2) Censure the person if the person is a licensed brokerdealer, sales representative, investment adviser, or investment adviserrepresentative;
(3) Bar or suspend the person from association with alicensed broker dealer or investment adviser in this state; and
(4) Issue an order against an applicant, licensed person, orother person who violates this chapter or a rule or order of the director underthis chapter, imposing a civil penalty up to a maximum of ten thousand dollars($10,000) for a single violation.
(c) For purposes of determining what sanctions, if any, to beimposed under subsections (b)(1) through (b)(4) of this section, the directorshall consider, among other factors, the frequency and persistence of theconduct constituting a violation of this chapter or a rule or order of thedirector under this chapter, the number of persons adversely affected by theconduct, and the resources of the person committing the violation.