44-1962

44-1962. Grounds for denial, revocation or
suspension of registration of salesman; administrative
remedies

A. After a hearing or notice and opportunity for a hearing as provided by article
11 of this chapter, the commission may enter an order suspending for a period of not to
exceed one year, denying or revoking the registration of a salesman if the commission
finds that:

1. The application for registration of the salesman, any statement, document or
other exhibit filed with the application or any supplement or amendment to the
application is incomplete, inaccurate or misleading.

2. The salesman has violated this chapter or any rule or order of the commission
under this chapter.

3. The salesman has failed to file with the commission any record, report or other
information required under this chapter or any rule or order of the commission under this
chapter or has refused to permit an examination into the salesman's affairs.

4. The salesman is lacking in integrity, is not of good business reputation or is
not qualified by training or experience.

5. The salesman is not employed by a registered dealer.

6. The salesman has been convicted within ten years preceding the date of filing
the application for registration as a salesman, or at anytime thereafter, of a felony or
misdemeanor involving a transaction in securities, of which fraud is an essential element
or arising out of the conduct of any business in securities.

7. The salesman is permanently or temporarily enjoined by order, judgment or decree
of an administrative tribunal or a court of competent jurisdiction from engaging in or
continuing any conduct or practice in connection with the sale or purchase of securities.

8. The salesman is subject to an order of an administrative tribunal, an SRO or the
SEC denying, suspending or revoking membership or registration as a broker or dealer in
securities or an investment adviser or investment adviser representative for at least six
months.

9. The salesman has been guilty of any fraudulent act or practice in connection
with the purchase or sale of securities.

10. The salesman has engaged in dishonest or unethical practices in the securities
industry.

11. The salesman has failed to reasonably supervise salesmen under the salesman's
supervisory control.

12. The salesman has engaged in dishonest or unethical practices in business or
financial matters.

B. In addition to denying, revoking or suspending the registration, if the
commission finds that a salesman has engaged in an act, practice or transaction described
in subsection A, paragraph 10 or 11, the commission may do one or more of the following:

1. Assess administrative penalties.

2. Order the salesman to cease and desist from engaging in the act, practice or
transaction or doing any other act in furtherance of the act, practice or transaction.

3. Take appropriate affirmative action, as prescribed by the commission, to correct
the conditions resulting from the act, practice or transaction, including a requirement
to provide restitution.

C. If the registration of a salesman is revoked or denied, that salesman may not
file with the commission an application for registration under this chapter or for
licensure under chapter 13 of this title for at least one year after the date of the
revocation or denial.