409.6-604. Administrative enforcement.

MISSOURI STATUTES AND CODES

409.6-604. Administrative enforcement.

Administrative enforcement.

409.6-604. (a) If the commissioner determines that a person hasengaged, is engaging, or is about to engage in an act, practice, or courseof business constituting a violation of this act or a rule adopted or orderissued under this act or that a person has materially aided, is materiallyaiding, or is about to materially aid an act, practice, or course ofbusiness constituting a violation of this act or a rule adopted or orderissued under this act, the commissioner may:

(1) Issue an order directing the person to cease and desist fromengaging in the act, practice, or course of business or to take otheraction necessary or appropriate to comply with this act;

(2) Issue an order denying, suspending, revoking, or conditioning theexemptions for a broker-dealer under section 409.4-401(b)(1)(D) or (F) oran 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 ofissuance. Upon issuance of the order, the commissioner shall promptlyserve each person subject to the order with a copy of the order and anotice that the order has been entered. The order must include a statementwhether the commissioner will seek a civil penalty or costs of theinvestigation, 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 theorder does not request a hearing and none is ordered by the commissionerwithin thirty days after the date of service of the order, the orderbecomes final as to that person by operation of law. If a hearing isrequested or ordered, the commissioner, after notice of and opportunity forhearing to each person subject to the order, may modify or vacate the orderor 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 notbe issued unless the commissioner makes findings of fact and conclusions oflaw in a record in accordance with the provisions of chapter 536, RSMo, andprocedural rules promulgated by the commissioner. The final order may makefinal, 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 singleviolation or up to ten thousand dollars for more than one violation;

(2) Order a person subject to the order to pay restitution for anyloss, including the amount of any actual damages that may have been causedby the conduct and interest at the rate of eight percent per year from thedate of the violation causing the loss or disgorge any profits arising fromthe violation;

(3) In addition to any civil penalty otherwise provided by law,impose an additional civil penalty not to exceed five thousand dollars foreach such violation if the commissioner finds that a person subject to theorder has violated any provision of this act and that such violation wascommitted against an elderly or disabled person. For purposes of thissection, the following terms mean:

(A) "Disabled person", a person with a physical or mental impairmentthat substantially limits one or more of the major life activities of suchindividual, a record of such impairment, or being regarded as having suchan impairment;

(B) "Elderly person", a person sixty years of age or older.

(e) In a final order, the commissioner may charge the actual cost ofan investigation or proceeding for a violation of this act or a ruleadopted or order issued under this act. These funds may be paid into theinvestor education and protection fund.

(f) If a petition for judicial review of a final order is not filedin accordance with section 409.6-609, the commissioner may file a certifiedcopy of the final order with the clerk of a court of competentjurisdiction. The order so filed has the same effect as a judgment of thecourt and may be recorded, enforced, or satisfied in the same manner as ajudgment of the court.

(g) If a person does not comply with an order under this section, thecommissioner may petition a court of competent jurisdiction to enforce theorder. The court may not require the commissioner to post a bond in anaction or proceeding under this section. If the court finds, after serviceand opportunity for hearing, that the person was not in compliance with theorder, the court may adjudge the person in civil contempt of the order.The court may impose a further civil penalty against the person forcontempt in an amount not less than five thousand dollars but not greaterthan one hundred thousand dollars for each violation and may grant anyother relief the court determines is just and proper in the circumstances.

(h) The commissioner is authorized to issue administrative consentorders in the settlement of any proceeding in the public interest underthis act.