§ 353 — Action by attorney-general

New York § 353

• Jurisdiction: New York
• Law GBS: General Business
• Art. 23-A: Fraudulent Practices In Respect to Stocks, Bonds and Other Securities

Text

§ 353. Action by attorney-general. 1. Whenever the attorney-general\nshall believe from evidence satisfactory to him that any person,\npartnership, corporation, company, trust or association has engaged in,\nis engaged or is about to engage in any of the practices or transactions\nheretofore referred to as and declared to be fraudulent practices, he\nmay bring an action in the name and on behalf of the people of the state\nof New York against such person, partnership, corporation, company,\ntrust or association, and any other person or persons theretofore\nconcerned in or in any way participating in or about to participate in\nsuch fraudulent practices, to enjoin such person, partnership,\ncorporation, company, trust or association and such other person or\npersons from continuing such fraudulent practices or engaging therein or\ndoing any act or acts in furtherance thereof or, if the attorney-general\nshould believe from such evidence that such person, partnership,\ncorporation, company, trust or association actually has or is engaged in\nany such fraudulent practice, he may include in such action an\napplication to enjoin permanently such person, partnership, corporation,\ncompany, trust or association, and such other person or persons as may\nhave been or may be concerned with or in any way participating in such\nfraudulent practice, from selling or offering for sale to the public\nwithin this state, as principal, broker or agent, or otherwise, any\nsecurities issued or to be issued. In said action an order or a judgment\nmay be entered awarding the relief applied for or so much thereof as the\ncourt may deem proper. Upon a showing by the attorney-general in his\napplication for a permanent injunction hereunder that the defendant\nnamed in the action or an officer thereof has refused to be sworn or to\nbe examined or to answer a material question or to produce a book or\npaper relevant to the inquiry when duly ordered so to do by the officer\nor judge duly conducting an inquiry into the subject matter forming the\nbasis of the application for such injunction, such refusal shall be\nprima facie proof that such defendant is or has been engaged in\nfraudulent practices as set forth in such application and a permanent\ninjunction may issue from the supreme court without any further showing\nby the attorney-general. In such an action, the court may award to the\nplaintiff a sum not in excess of two thousand dollars as an additional\nallowance.\n 2. Upon a showing by the attorney-general in an application for an\ninjunction that any person engaged in the purchase, sale, offer to\npurchase or sell, issuance, exchange, promotion, negotiation,\nadvertisement or distribution within this state of any security or\nsecurities, either as principal, partner, officer, agent, employee or\notherwise, has ever been convicted by a court of competent jurisdiction\nin any state or country of any felony; or of any other criminal offense\nby any such court, whether or not constituting a felony, involving\nsecurities, the supreme court after a hearing may issue a permanent\ninjunction awarding the relief applied for, or so much thereof as the\ncourt may deem proper, against such person shown to have been so\nconvicted, in the form and manner provided for in subdivision one of\nthis section in case of one who actually has or is engaged in any\nfraudulent practice.\n 3. Upon a showing by the attorney general that a fraudulent practice\nas defined by this article has occurred, he may include in an action\nunder this article an application to direct restitution of any moneys or\nproperty obtained directly or indirectly by any such fraudulent\npractice.\n 4. Notwithstanding any law to the contrary, all monies recovered or\nobtained under this article by a state agency or state official or\nemployee acting in their official capacity shall be subject to\nsubdivision eleven of section four of the state finance law.\n