§ 25-11-1-9 — Revocation or suspension of license; hearing procedure; violations; investigation; orders and notices; hearing; costs; discovery

(a) Upon the filing with the secretary of state,
by any interested person, of a verified written complaint which charges
any licensee hereunder with a specific violation of any of the provisions
of this chapter, the secretary of state shall cause an investigation of the
complaint to be made. If the investigation shows probable cause for the
revocation or suspension of the license, the secretary of state shall send
a written notice to such licensee, stating in such notice the alleged
grounds for the revocation or suspension and fixing a time and place
for the hearing thereof. The hearing shall be held not less than five (5)
days nor more than twenty (20) days from the time of the mailing of the
notice, unless the parties consent otherwise. The secretary of state may
subpoena witnesses, books, and records and may administer oaths. The
licensee may appear and defend against such charges in person or by
counsel. If upon such hearing the secretary of state finds the charges to
be true, the secretary of state shall either revoke or suspend the license
of the licensee. Suspension shall be for a time certain and in no event
for a longer period than one (1) year. No license shall be issued to any
person whose license has been revoked for a period of two (2) years
from the date of revocation. Reapplication for a license, after
revocation as provided, shall be made in the same manner as provided
in this chapter for an original application for a license.
(b) Whenever it appears to the secretary of state that a person has
engaged in or is about to engage in an act or practice constituting a
violation of this chapter or a rule or order under this chapter, the
secretary of state may investigate and may issue, with or without a prior
hearing, orders and notices as the secretary of state determines to be in
the public interest, including cease and desist orders, orders to show
cause, and notices. After notice and hearing, the secretary of state may
enter an order of rescission, restitution, or disgorgement, including
interest at the rate of eight percent (8%) per year, directed to a person
who has violated this chapter or a rule or order under this chapter. In
addition to all other remedies, the secretary of state may bring an action
in the name of and on behalf of the state against the person and any
other person participating in or about to participate in a violation of this
chapter, to enjoin the person from continuing or doing an act furthering
a violation of this chapter and may obtain the appointment of a receiver
or conservator. Upon a proper showing by the secretary of state, the
court shall enter an order of rescission, restitution, or disgorgement of
the secretary of state directed to a person who has violated this chapter
or a rule or order under this chapter.
(c) Upon the issuance of an order or a notice by the secretary of
state under subsection (b), the secretary of state shall promptly notify
the respondent of the following:
(1) That the order or notice has been issued.
(2) The reasons the order or notice has been issued.
(3) That upon the receipt of a written request the matter will be
set for a hearing to commence not less than five (5) days and not
more than twenty (20) days after the secretary of state receives the
request, unless the parties consent otherwise.
If the respondent does not request a hearing and the secretary of state
does not order a hearing, the order or notice will remain in effect until
it is modified or vacated by the secretary of state. If a hearing is
requested or ordered, the secretary of state, after giving notice of the
hearing, may modify or vacate the order or extend it until final
determination.
(d) In a proceeding in a circuit or superior court under this section,
the secretary of state is entitled to recover all costs and expenses of
investigation to which the securities commissioner would be entitled
in an administrative proceeding under IC 23-19-6-4, and the court shall
include the costs in its final judgment.
(e) For the purpose of any investigation or proceeding under this
chapter, the secretary of state may administer oaths and affirmations,
subpoena witnesses, compel their attendance, take evidence, and
require the production of any books, papers, correspondence,
memoranda, agreements, or other documents or records that the
secretary of state considers material to the inquiry.
(f) Upon order of the secretary of state in any hearing, a deposition
may be taken of any witness. A deposition under this chapter shall be:
(1) conducted in the manner prescribed by law for depositions in
civil actions; and
(2) made returnable to the secretary of state.
(g) If any person fails to obey a subpoena, the circuit or superior
court, upon application by the secretary of state, may issue to the
person an order requiring the person to appear before the secretary of
state to produce documentary evidence, if so ordered, or to give
evidence concerning the matter under investigation.
(h) A person is not excused from:
(1) attending any hearing or testifying before the secretary of
state; or
(2) producing any document or record;
in obedience to a subpoena of the secretary of state, or in any
proceeding instituted by the secretary of state, on the grounds that the
testimony or evidence, documentary or otherwise, required of the
person may tend to incriminate the person or subject the person to a
penalty or forfeiture. However, a person may not be prosecuted or
subjected to any penalty or forfeiture for or on account of any
transaction, matter, or thing about which the person is compelled, after
validly claiming the person's privilege against self-incrimination, to
testify or produce evidence, documentary or otherwise.
Formerly: Acts 1937, c.92, s.9; Acts 1955, c.304, s.9. As
amended by Acts 1982, P.L.154, SEC.44; P.L.178-1996, SEC.8;
P.L.230-2007, SEC.21; P.L.3-2008, SEC.184; P.L.1-2009,
SEC.139.