§ 502.603A — Cooperation with other agencies

Iowa § 502.603A

• Jurisdiction: Iowa
• Title XII: BUSINESS ENTITIES
• Ch. 502: UNIFORM SECURITIES ACT (BLUE SKY LAW)

Text

68. See §502.608.
502.604 Administrative enforcement.
1. Issuance of an order or notice. If the administrator 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 chapter or a rule adopted or order issued under this chapter
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 chapter or a rule adopted
or order issued under this chapter, the administrator may do any of the following:
a. 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 chapter.
b. Issue an order denying, suspending, revoking, or conditioning the exemptions for a
broker-dealer under section 502.401, subsection 2, paragraph “a”, subparagraph (4) or (6), or
an investment adviser under section 502.403, subsection 2, paragraph “a”, subparagraph (3).
c. Issue an order under section 502.204.
2. Summary process. An order under subsection 1 is effective on the date of issuance.
Upon issuance of the order, the administrator 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 of any restitution order, civil penalty, or costs of investigation the
administrator will seek, a statement of the reasons for the order, and notice that, within thirty
53 UNIFORM SECURITIES ACT (BLUE SKY LAW), §502.604A
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 administrator within thirty days after the date of service of the order, the order, including
an order for restitution, the imposition of a civil penalty, or a requirement for payment of
costs of investigation sought in the order, becomes final as to that person by operation of law.
If a hearing is requested or ordered, the administrator, 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.
3. Procedure for final order. If a hearing is requested or ordered pursuant to subsection
2, a hearing must be held pursuant to chapter 17A. A final order shall not be issued unless
the administrator makes findings of fact and conclusions of law in a record in accordance
with chapter 17A. The final order may make final, vacate, or modify the order issued under
subsection 1.
4. Civil penalty — restitution — corrective action. In a final order under subsection 3, the
administrator may impose a civil penalty up to an amount not to exceed a maximum of ten
thousand dollars for a single violation or one million dollars for more than one violation, or
in an amount as agreed to by the parties, order restitution, or take other corrective action as
the administrator deems necessary and appropriate to accomplish compliance with the laws
of the state relating to all securities business transacted in the state.
5. Costs. Inafinalorder, theadministratormaychargetheactualcostofaninvestigation
or proceeding for a violation of this chapter or a rule adopted or order issued under this
chapter.
5A. Failure to obey cease and desist order. A person who fails to obey a valid cease and
desist order issued by the administrator under this section may, after notice and opportunity
for a hearing, be subject to a civil penalty in an amount of not less than one thousand dollars
andnottoexceedtenthousanddollarsforviolatingtheorder. Eachdaythefailuretoobeythe
cease and desist order occurs or continues constitutes a separate violation of the order. The
penalties provided in this subsection are in addition to, and not exclusive of, other remedies
that may be available.
6. Filingofcertifiedfinalorderwithcourt—effectoffiling. Ifapetitionforjudicialreview
of a final order is not filed in accordance with section 502.609, the administrator 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.
7. Enforcement by court — further civil penalty. If a person does not comply with an
order under this section, the administrator may petition the Polk county district court or the
district court for the county in which the person resides or is located to enforce the order. The
court shall not require the administrator 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.
Thecourtmayimposeafurthercivilpenaltyagainstthepersonforcontemptinanamountnot
less than three thousand dollars but not greater than ten thousand dollars for each violation
and may grant any other relief the court determines is just and proper in the circumstances.

Legislative History

[C31, 35, §8581-c17; C39, §8581.21; C46, 50, 54, 58, 62, 66, 71, 73, 75, §502.21(5); C77, 79, 81, §502.604]