§ 10-04-16 — Orders, injunctions, and prosecutions for violations - Civil penalty

If it appears to the commissioner, either upon complaint or otherwise, that any person has
engaged in, or is engaging in, or is about to engage in any act or practice or transaction
prohibited by this chapter or by any order of the commissioner issued under this chapter or
which is declared to be illegal under this chapter, the commissioner may:
1. Issue any order, including cease and desist, rescission, stop, and suspension orders,
which the commissioner deems necessary or appropriate in the public interest or for
the protection of investors. An order of the commissioner is effective upon issuance.
The commissioner may, in addition to any other remedy authorized by this chapter,
impose by order and collect a civil penalty against any person found in an
administrative action to have violated any provision of this chapter, or any rule or order
adopted or issued under this chapter, in an amount not to exceed ten thousand dollars
for each violation. The commissioner may bring actions to recover penalties pursuant
to this section in district court. A person aggrieved by an order issued pursuant to this
subsection may request a hearing before the commissioner if a written request is
made within fifteen days after receipt of the order. If a request for hearing is made
under this subsection, the commissioner shall schedule a hearing within a reasonable
time. Subsections 3 and 4 of section 10-04-12 apply to any hearing conducted under
this subsection. If, after a hearing, the commissioner sustains an order previously
issued, the sustaining order is subject to appeal to the district court of Burleigh County
according to the procedures set forth in chapter 28-32. Any order issued under this
subsection is a final order if it is properly served and no hearing was requested within
the required timeline. If an order issued under this subsection is sustained or modified
after a hearing held in accordance with section 10-04-12, the order sustaining or
modifying that order is a final order. If the final order is not appealed in accordance
with the procedures set forth in chapter 28-32 or if the final order is sustained on
appeal, 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.
2. Apply to the district court of any county in this state for an injunction restraining the
person and the person's agents, employees, partners, officers, and directors from
continuing the act, practice, or transaction or engaging in or doing any acts that further

the practice or transaction, and for such other and further relief as the facts warrant. In
any proceeding for an injunction, the commissioner may apply for and on due showing
be issued the court's subpoena requiring the appearance of any defendant and the
defendant's agents, employees, partners, officers, or directors, and the production of
the documents, books, and records necessary for the hearing upon the petition for an
injunction. Upon proof of any of the offenses described in this section, the court may
grant the injunction as the facts warrant, and a receiver or conservator may be
appointed for the defendant or the defendant's assets, and the court may assess civil
penalties in an amount not to exceed ten thousand dollars for each violation of this
chapter, and any rules adopted or orders issued under this chapter. The court may not
require the commissioner to post a bond.
3. Refer any evidence available concerning the act, practice, or transaction to the
appropriate criminal prosecutor who may, with or without the reference, institute the
necessary criminal proceedings. The prosecutor may apply for and on due showing be
issued the court's subpoena requiring the appearance of any defendant and the
defendant's agents, employees, partners, officers, and directors, and the production of
any documents, books, and records necessary for the prosecution of the criminal
proceedings.