Missouri Revised Statutes
Chapter 409
Regulation of Securities
←409.06-603
Section 409.6-604.1
409.06-605→
August 28, 2015
Administrative enforcement.
409.6-604. (a) If the commissioner determines that a person has
engaged, is engaging, or is about to engage in an act, practice, or course of
business constituting a violation of this act or a rule adopted or order
issued under this act or that a person has materially aided, is materially
aiding, or is about to materially aid an act, practice, or course of business
constituting a violation of this act or a rule adopted or order issued under
this act, the commissioner may:
(1) Issue an order directing the person to cease and desist from
engaging in the act, practice, or course of business or to take other action
necessary or appropriate to comply with this act;
(2) Issue an order denying, suspending, revoking, or conditioning the
exemptions for a broker-dealer under section 409.4-401(b)(1)(D) or (F) or an
investment adviser under section 409.4-403(b)(1)(C); or
(3) Issue an order under section 409.2-204.
(b) An order under subsection (a) is effective on the date of issuance.
Upon issuance of the order, the commissioner shall promptly serve each person
subject to the order with a copy of the order and a notice that the order has
been entered. The order must include a statement whether the commissioner
will seek a civil penalty or costs of the investigation, a statement of the
reasons for the order, and notice that, within fifteen days after receipt of
a request in a record from the person, the matter will be scheduled for a
hearing. If a person subject to the order does not request a hearing and
none is ordered by the commissioner within thirty days after the date of
service of the order, the order becomes final as to that person by operation
of law. If a hearing is requested or ordered, the commissioner, after notice
of and opportunity for hearing to each person subject to the order, may
modify or vacate the order or extend it until final determination.
(c) If a hearing is requested or ordered pursuant to subsection (b), a
hearing before the commissioner must be provided. A final order may not be
issued unless the commissioner makes findings of fact and conclusions of law
in a record in accordance with the provisions of chapter 536 and procedural
rules promulgated by the commissioner. The final order may make final,
vacate, or modify the order issued under subsection (a).
(d) In a final order under subsection (c), the commissioner may:
(1) Impose a civil penalty up to one thousand dollars for a single
violation or up to ten thousand dollars for more than one violation;
(2) Order a person subject to the order to pay restitution for any loss,
including the amount of any actual damages that may have been caused by the
conduct and interest at the rate of eight percent per year from the date of
the violation causing the loss or disgorge any profits arising from the
violation;
(3) In addition to any civil penalty otherwise provided by law, impose
an additional civil penalty not to exceed five thousand dollars for each such
violation if the commissioner finds that a person subject to the order has
violated any provision of this act and that such violation was committed
against an elderly or disabled person. For purposes of this section, the
following terms mean:
(A) "Disabled person", a person with a physical or mental impairment
that substantially limits one or more of the major life activities of such
individual, a record of such impairment, or being regarded as having such an
impairment;
(B) "Elderly person", a person sixty years of age or older.
(e) In a final order, the commissioner may charge the actual cost of an
investigation or proceeding for a violation of this act or a rule adopted or
order issued under this act. These funds may be paid into the investor
education and protection fund.
(f) If a petition for judicial review of a final order is not filed in
accordance with section 409.6-609, the commissioner may file a certified copy
of the final order with the clerk of a court of competent jurisdiction. The
order so filed has the same effect as a judgment of the court and may be
recorded, enforced, or satisfied in the same manner as a judgment of the
court.
(g) If a person does not comply with an order under this section, the
commissioner may petition a court of competent jurisdiction to enforce the
order. The court may not require the commissioner to post a bond in an
action or proceeding under this section. If the court finds, after service
and opportunity for hearing, that the person was not in compliance with the
order, the court may adjudge the person in civil contempt of the order. The
court may impose a further civil penalty against the person for contempt in
an amount not less than five thousand dollars but not greater than one hundred
thousand dollars for each violation and may grant any other relief the court
determines is just and proper in the circumstances.
(h) The commissioner is authorized to issue administrative consent
orders in the settlement of any proceeding in the public interest under this
act.
(L. 2003 H.B. 380, A.L. 2009 H.B. 62)
2003
2003
409.6-604. (a) If the commissioner determines that a person has
engaged, is engaging, or is about to engage in an act, practice, or course
of business constituting a violation of this act or a rule adopted or order
issued under this act or that a person has materially aided, is materially
aiding, or is about to materially aid an act, practice, or course of
business constituting a violation of this act or a rule adopted or order
issued under this act, the commissioner may:
(1) Issue an order directing the person to cease and desist from
engaging in the act, practice, or course of business or to take other
action necessary or appropriate to comply with this act;
(2) Issue an order denying, suspending, revoking, or conditioning the
exemptions for a broker-dealer under section 409.4-401(b)(1)(D) or (F) or
an investment adviser under section 409.4-403(b)(1)(C); or
(3) Issue an order under section 409.2-204.
(b) An order under subsection (a) is effective on the date of
issuance. Upon issuance of the order, the commissioner shall promptly
serve each person subject to the order with a copy of the order and a
notice that the order has been entered. The order must include a statement
whether the commissioner will seek a civil penalty or costs of the
investigation, a statement of the reasons for the order, and notice that,
within fifteen days after receipt of a request in a record from the person,
the matter will be scheduled for a hearing. If a person subject to the
order does not request a hearing and none is ordered by the commissioner
within thirty days after the date of service of the order, the order
becomes final as to that person by operation of law. If a hearing is
requested or ordered, the commissioner, after notice of and opportunity for
hearing to each person subject to the order, may modify or vacate the order
or extend it until final determination.
(c) If a hearing is requested or ordered pursuant to subsection (b),
a hearing before the commissioner must be provided. A final order may not
be issued unless the commissioner makes findings of fact and conclusions of
law in a record in accordance with the provisions of chapter 536, RSMo, and
procedural rules promulgated by the commissioner. The final order may make
final, vacate, or modify the order issued under subsection (a).
(d) In a final order under subsection (c), the commissioner may
impose a civil penalty up to one thousand dollars for a single violation or
up to ten thousand dollars for more than one violation.
(e) In a final order, the commissioner may charge the actual cost of
an investigation or proceeding for a violation of this act or a rule
adopted or order issued under this act. These funds may be paid into the
investor education and protection fund.
(f) If a petition for judicial review of a final order is not filed
in accordance with section 409.6-609, the commissioner may file a certified
copy of the final order with the clerk of a court of competent
jurisdiction. The order so filed has the same effect as a judgment of the
court and may be recorded, enforced, or satisfied in the same manner as a
judgment of the court.
(g) If a person does not comply with an order under this section, the
commissioner may petition a court of competent jurisdiction to enforce the
order. The court may not require the commissioner to post a bond in an
action or proceeding under this section. If the court finds, after service
and opportunity for hearing, that the person was not in compliance with the
order, the court may adjudge the person in civil contempt of the order.
The court may impose a further civil penalty against the person for
contempt in an amount not less than five thousand dollars but not greater
than one hundred thousand dollars for each violation and may grant any
other relief the court determines is just and proper in the circumstances.
(h) The commissioner is authorized to issue administrative consent
orders in the settlement of any proceeding in the public interest under
this act.
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