17-12a604.   Administrative enforcement.(a) Cease and desist order. If the administratorfinds that a person has engaged, is engaging, or is about to engagein an act, practice, or course of business constituting a violation of this actor a rule adopted or order issued under this act or thata person has materially aided, is materially aiding, or is about tomaterially aid an act, practice, or course of business constitutinga violation of this act or a rule adopted or order issued under thisact, the administrator may:

      (1)   Issue an order directing the person to cease and desistfrom engaging in the act, practice, or course of business or to takeother action necessary or appropriate to comply with this act;

      (2)   issue an order denying, suspending, revoking, orconditioning the exemptions for a broker-dealer underK.S.A. 17-12a401(b)(1)(D) or (F), and amendments thereto, or an investmentadviserunderK.S.A. 17-12a403(b)(1)(C), and amendments thereto; or

      (3)   issue an order underK.S.A. 17-12a204, and amendments thereto.

      (b)   Additional administrative sanctions and remedies. If theadministrator finds, by written findings of fact and conclusions oflaw, that a person has violated this act or a rule adopted or orderissued under this act, the administrator, in addition to any otherpower granted under this act, may enter an order against theperson containing one or more of the following sanctions orremedies:

      (1)   A civil penalty up to $25,000 for eachviolation.If any person is found to have violated any provisionof this act, and such violation is committed against elder or disabled persons,as defined in K.S.A. 50-676, and amendments thereto, in addition to any civilpenalty otherwise provided by law, the administrator may impose an additionalpenalty not to exceed $15,000 for each such violation. The total penaltyagainst a person shall not exceed $1,000,000;

      (2)   a bar or suspension from association with a broker-dealeror investment adviser registered in this state;

      (3)   an order requiring the person to pay restitution for any loss or disgorgeany profits arising from the violation, including,in the administrator's discretion, the assessment of interestfrom the date of the violationat the rate provided for interest onjudgments by K.S.A. 16-204, and amendments thereto; or

      (4)   an order charging the person with the actual cost of theinvestigation or proceeding.

      (c)   Procedures for orders. (1) An order under subsection (b)shall not be entered unless the administrator first provides noticeand opportunity for hearing in accordance with the provisions of theKansas administrative procedures act.

      (2)   An order under subsection (a) is effective on the date ofissuance. Upon issuance of the order, the administrator shallpromptly serve each person subject to the order with a copy of theorder. The order must include a statement of the reasons for theorder and notice that upon receipt of a written request the matterwill be set for a hearing which shall be conducted in accordancewith the provisions of the Kansas administrative procedures act.If a person subject to the order does not request a hearing and noneis ordered by the administrator within 30 days after the date ofservice of the order, the order becomes final as to that person byoperation of law. If a hearing is requested or ordered, theadministrator, after notice of and opportunity for hearing to eachperson subject to the order, may modify or vacate the order orextend it until final determination.

      (3)   An order under subsection (a) may contain a notice of theadministrator's intent to seek administrative sanctions or remedies undersubsection (b). If the person subject to the order does notrequest a hearing and none is ordered by the administrator within30 days after service of the order, the administrator may modify theorder to include sanctions or remedies under subsection (b). If ahearing is requested or ordered, the administrator, after notice andopportunity for hearing, shall by written findings of fact andconclusions of law vacate, modify, or make permanent the order, andthe administrator may modify the order to include sanctions orremedies under subsection (b).

      (d)   Filing of certified final order with court; effect offiling. If a petition for judicial review of a final order is notfiled in accordance withK.S.A. 17-12a609, and amendments thereto,theadministrator may file a certified copy of the final order with theclerk of a court of competent jurisdiction. The order so filed hasthe same effect as a judgment of the court and may be recorded,enforced, or satisfied in the same manner as a judgment of thecourt.

      (e)   Enforcement by court; further civil penalty. If a persondoes not comply with an order under this section, the administratormay petition a court of competent jurisdiction to enforce the order.The court may not require the administrator to post a bond in anaction or proceeding under this section. If the court finds, afterservice and opportunity for hearing, that the person was not incompliance with the order, the court may adjudge the person in civilcontempt of the order. The court may impose a further civil penalty againstthe person for contempt in an amount not greater than$25,000 for each violation and may grant any other relief the courtdetermines is just and proper in the circumstances.

      History:   L. 2004, ch. 154, § 43; July 1, 2005.