1.Whenever it appears to the commissioner that any person has engaged or is about to
engage in any act or practice constituting a violation of any provision of this chapter or
any rule or order hereunder, the commissioner may bring an action in the name of the
people of the state of North Dakota in the district court to enjoin the acts or practices or
to enforce compliance with this chapter or any rule or order hereunder. Upon a proper
showing, a permanent or preliminary injunction, restraining order, or writ of mandamus
must be granted and a receiver or conservator may be appointed for the defendant or
the defendant's assets. The court may not require the commissioner to post a bond.
2.
a.The commissioner may make such public and private investigations within or
outside of this state as
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1. Whenever it appears to the commissioner that any person has engaged or is about to
engage in any act or practice constituting a violation of any provision of this chapter or
any rule or order hereunder, the commissioner may bring an action in the name of the
people of the state of North Dakota in the district court to enjoin the acts or practices or
to enforce compliance with this chapter or any rule or order hereunder. Upon a proper
showing, a permanent or preliminary injunction, restraining order, or writ of mandamus
must be granted and a receiver or conservator may be appointed for the defendant or
the defendant's assets. The court may not require the commissioner to post a bond.
2. a. The commissioner may make such public and private investigations within or
outside of this state as the commissioner deems necessary to determine whether
any person has violated or is about to violate any provision of this chapter or any
rule or order hereunder or to aid in the enforcement of this chapter or in the
prescribing of rules and forms hereunder and publish information concerning the
violation of this chapter or any rule or order hereunder.
b. The commissioner may require or permit any person to file a statement under
oath or otherwise subject to the penalties of perjury as the commissioner requires
in writing as to all the facts and circumstances concerning the matter to be
investigated. Failure to reply with all required information to the commissioner's
letter within fifteen days after receipt thereof shall be the basis for issuance of a
cease and desist order.
c. For the purpose of any investigation or proceeding under this chapter, the
commissioner or any officer designated by the commissioner may administer
oaths and affirmations, subpoena witnesses and compel their attendance, take
evidence, and require the production of any books, papers, correspondence,
memoranda, agreements, or other documents or records which the commissioner
deems relevant or material to the inquiry.
d. In case of contumacy by, or refusal to obey a subpoena issued to, any person,
the district court upon application by the commissioner may issue to the person
an order requiring the person to appear before the commissioner or the officer
designated by the commissioner there to produce documentary evidence, if so
ordered, or to give evidence touching the matter under investigation or in
question. Failure to obey the order of the court may be punished by the court as a
contempt.
e. No person is excused from attending and testifying or from producing any
document or record before the commissioner or in obedience to the subpoena of
the commissioner or any officer designated by the commissioner or in any
proceeding instituted by the commissioner on the ground 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. No
testimony or evidence, documentary or otherwise, compelled from an individual
after a valid claim of the privilege against self-incrimination has been made may
be used against the individual in any criminal proceeding, or in any proceeding to
subject the individual to a penalty or forfeiture, except that the individual testifying
is not exempt from prosecution and punishment for perjury or contempt
committed in testifying.
f. If, in the opinion of the commissioner, the offer of any franchise is subject to
registration under this chapter and it is being or has been offered for sale without
the offer first being registered, the commissioner may order the franchisor or
offeror of the franchise to desist and refrain from the further offer or sale of the
franchise unless and until the offer has been duly registered under this chapter. In
addition to any other remedy authorized by this chapter, the commissioner may
impose by order and collect a civil penalty in an amount not to exceed ten
thousand dollars for each violation against any person found in an administrative
action to have violated this chapter. The commissioner may bring an action in
district court to recover penalties under this section. If, within fifteen days after the
order has been served on the respondent, a request for a hearing is filed in
writing by the person to whom the order was directed, a hearing must be held
within fifteen business days after the request is made unless the persons affected
consent to a later date. If a request for hearing is not made within the fifteen days
permitted herein, the order is final.
g. If, in the opinion of the commissioner, the offer of any franchise exempt from
registration under this chapter is being or has been offered for sale without
complying with section 51-19-04 or subsection 2 of section 51-19-11, the
commissioner may order the franchisor or offeror of the franchise to desist and
refrain from the further offer or sale of the franchise unless and until an offer is
made in compliance with this chapter. In addition to any other remedy authorized
by this chapter, the commissioner may impose by order and collect a civil penalty
in an amount not to exceed ten thousand dollars for each violation against any
person found in an administrative action to have violated this chapter. The
commissioner may bring an action in district court to recover penalties under this
section. If, within fifteen days after the order has been served on the respondent,
a request for a hearing is filed in writing by the person to whom the order was
directed, a hearing must be held within fifteen business days after the date. If a
request for hearing is not made within the fifteen days permitted herein, the order
is final.
h. The commissioner may refer evidence available concerning any violation of this
chapter or of any rule or order issued under this chapter to the appropriate
criminal prosecutor who may, with or without the reference, institute criminal
proceedings under this chapter. The criminal prosecutor may apply for and on
due showing be issued the court's subpoena requiring the appearance forthwith
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.
3. No action may be brought under this chapter by the commissioner after five years from
the date that the commissioner knew or reasonably should have known about the facts
that are the basis for the alleged violation. This subsection does not apply to any
action under sections 51-19-09 and 51-19-11.