17-12a604.Administrative enforcement.
(a) Cease and desist order. If the administrator
finds that a person has engaged, is engaging, or is about to engage
in an act, practice, or course of business constituting a violation of this act
or a rule adopted or order issued under this act or that
a person has materially aided, is materially aiding, or is about to
materially aid an act, practice, or course of business constituting
a violation of this act or a rule adopted or order issued under this
act, the administrator may:
(1) Issue an order directing the person to cease and desist
from engaging in the act, practice, or course of business or to take
other action necessary or appropriate to comply with this act;
(2) issue an order denying, suspending, revoking, or
conditioning the exemptions for a broker-dealer under
K.S.A. 17-12a401(b)(1)(D) or (F), and amendments thereto, or an investment
adviser
under
K.S.A. 17-12a403(b)(1)(C), and amendments thereto; or
(3) issue an order under
K.S.A. 17-12a204, and amendments thereto.
(b) Additional administrative sanctions and remedies. If the
administrator finds, by written findings of fact and conclusions of
law, that a person has violated this act or a rule adopted or order
issued under this act, the administrator, in addition to any other
power granted under this act, may enter an order against the
person containing one or more of the following sanctions or
remedies:
(1) A civil penalty up to $25,000 for each
violation.
If any person is found to have violated any provision
of 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 civil
penalty otherwise provided by law, the administrator may impose an additional
penalty not to exceed $15,000 for each such violation. The total penalty
against a person shall not exceed $1,000,000;
(2) a bar or suspension from association with a broker-dealer
or investment adviser registered in this state;
(3) an order requiring the person to pay restitution for any loss or disgorge
any profits arising from the violation, including,
in the administrator's discretion, the assessment of interest
from the date of the violation
at the rate provided for interest on
judgments by K.S.A. 16-204, and amendments thereto; or
(4) an order charging the person with the actual cost of the
investigation or proceeding.
(c) Procedures for orders. (1) An order under subsection (b)
shall not be entered unless the administrator first provides notice
and opportunity for hearing in accordance with the provisions of the
Kansas administrative procedures act.
(2) An order under subsection (a) is effective on the date of
issuance. Upon issuance of the order, the administrator shall
promptly serve each person subject to the order with a copy of the
order. The order must include a statement of the reasons for the
order and notice that upon receipt of a written request the matter
will be set for a hearing which shall be conducted in accordance
with the provisions of the Kansas administrative procedures act.
If a person subject to the order does not request a hearing and none
is ordered by the administrator within 30 days after the date of
service of the order, the order becomes final as to that person by
operation of law. If a hearing is requested or ordered, the
administrator, after notice of and opportunity for hearing to each
person subject to the order, may modify or vacate the order or
extend it until final determination.
(3) An order under subsection (a) may contain a notice of the
administrator's intent to seek administrative sanctions or remedies under
subsection (b). If the person subject to the order does not
request a hearing and none is ordered by the administrator within
30 days after service of the order, the administrator may modify the
order to include sanctions or remedies under subsection (b). If a
hearing is requested or ordered, the administrator, after notice and
opportunity for hearing, shall by written findings of fact and
conclusions of law vacate, modify, or make permanent the order, and
the administrator may modify the order to include sanctions or
remedies under subsection (b).
(d) Filing of certified final order with court; effect of
filing. If a petition for judicial review of a final order is not
filed in accordance with
K.S.A. 17-12a609, and amendments thereto,
the
administrator 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.
(e) Enforcement by court; further civil penalty. If a person
does not comply with an order under this section, the administrator
may petition a court of competent jurisdiction to enforce the order.
The court may not require the administrator to post a bond in an
action or proceeding under this section. If the court finds, after
service and opportunity for hearing, that the person was not in
compliance with the order, the court may adjudge the person in civil
contempt of the order. The court may impose a further civil penalty against
the person for contempt in an amount not greater than
$25,000 for each violation and may grant any other relief the court
determines is just and proper in the circumstances.
17-12a604.Administrative enforcement.
(a) Cease and desist order. If the administrator
finds that a person has engaged, is engaging, or is about to engage
in an act, practice, or course of business constituting a violation of this act
or a rule adopted or order issued under this act or that
a person has materially aided, is materially aiding, or is about to
materially aid an act, practice, or course of business constituting
a violation of this act or a rule adopted or order issued under this
act, the administrator may:
(1) Issue an order directing the person to cease and desist
from engaging in the act, practice, or course of business or to take
other action necessary or appropriate to comply with this act;
(2) issue an order denying, suspending, revoking, or
conditioning the exemptions for a broker-dealer under
K.S.A. 17-12a401(b)(1)(D) or (F), and amendments thereto, or an investment
adviser
under
K.S.A. 17-12a403(b)(1)(C), and amendments thereto; or
(3) issue an order under
K.S.A. 17-12a204, and amendments thereto.
(b) Additional administrative sanctions and remedies. If the
administrator finds, by written findings of fact and conclusions of
law, that a person has violated this act or a rule adopted or order
issued under this act, the administrator, in addition to any other
power granted under this act, may enter an order against the
person containing one or more of the following sanctions or
remedies:
(1) A civil penalty up to $25,000 for each
violation.
If any person is found to have violated any provision
of 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 civil
penalty otherwise provided by law, the administrator may impose an additional
penalty not to exceed $15,000 for each such violation. The total penalty
against a person shall not exceed $1,000,000;
(2) a bar or suspension from association with a broker-dealer
or investment adviser registered in this state;
(3) an order requiring the person to pay restitution for any loss or disgorge
any profits arising from the violation, including,
in the administrator's discretion, the assessment of interest
from the date of the violation
at the rate provided for interest on
judgments by K.S.A. 16-204, and amendments thereto; or
(4) an order charging the person with the actual cost of the
investigation or proceeding.
(c) Procedures for orders. (1) An order under subsection (b)
shall not be entered unless the administrator first provides notice
and opportunity for hearing in accordance with the provisions of the
Kansas administrative procedures act.
(2) An order under subsection (a) is effective on the date of
issuance. Upon issuance of the order, the administrator shall
promptly serve each person subject to the order with a copy of the
order. The order must include a statement of the reasons for the
order and notice that upon receipt of a written request the matter
will be set for a hearing which shall be conducted in accordance
with the provisions of the Kansas administrative procedures act.
If a person subject to the order does not request a hearing and none
is ordered by the administrator within 30 days after the date of
service of the order, the order becomes final as to that person by
operation of law. If a hearing is requested or ordered, the
administrator, after notice of and opportunity for hearing to each
person subject to the order, may modify or vacate the order or
extend it until final determination.
(3) An order under subsection (a) may contain a notice of the
administrator's intent to seek administrative sanctions or remedies under
subsection (b). If the person subject to the order does not
request a hearing and none is ordered by the administrator within
30 days after service of the order, the administrator may modify the
order to include sanctions or remedies under subsection (b). If a
hearing is requested or ordered, the administrator, after notice and
opportunity for hearing, shall by written findings of fact and
conclusions of law vacate, modify, or make permanent the order, and
the administrator may modify the order to include sanctions or
remedies under subsection (b).
(d) Filing of certified final order with court; effect of
filing. If a petition for judicial review of a final order is not
filed in accordance with
K.S.A. 17-12a609, and amendments thereto,
the
administrator 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.
(e) Enforcement by court; further civil penalty. If a person
does not comply with an order under this section, the administrator
may petition a court of competent jurisdiction to enforce the order.
The court may not require the administrator to post a bond in an
action or proceeding under this section. If the court finds, after
service and opportunity for hearing, that the person was not in
compliance with the order, the court may adjudge the person in civil
contempt of the order. The court may impose a further civil penalty against
the person for contempt in an amount not greater than
$25,000 for each violation and may grant any other relief the court
determines is just and proper in the circumstances.
17-12a604.Administrative enforcement.
(a) Cease and desist order. If the administrator
finds that a person has engaged, is engaging, or is about to engage
in an act, practice, or course of business constituting a violation of this act
or a rule adopted or order issued under this act or that
a person has materially aided, is materially aiding, or is about to
materially aid an act, practice, or course of business constituting
a violation of this act or a rule adopted or order issued under this
act, the administrator may:
(1) Issue an order directing the person to cease and desist
from engaging in the act, practice, or course of business or to take
other action necessary or appropriate to comply with this act;
(2) issue an order denying, suspending, revoking, or
conditioning the exemptions for a broker-dealer under
K.S.A. 17-12a401(b)(1)(D) or (F), and amendments thereto, or an investment
adviser
under
K.S.A. 17-12a403(b)(1)(C), and amendments thereto; or
(3) issue an order under
K.S.A. 17-12a204, and amendments thereto.
(b) Additional administrative sanctions and remedies. If the
administrator finds, by written findings of fact and conclusions of
law, that a person has violated this act or a rule adopted or order
issued under this act, the administrator, in addition to any other
power granted under this act, may enter an order against the
person containing one or more of the following sanctions or
remedies:
(1) A civil penalty up to $25,000 for each
violation.
If any person is found to have violated any provision
of 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 civil
penalty otherwise provided by law, the administrator may impose an additional
penalty not to exceed $15,000 for each such violation. The total penalty
against a person shall not exceed $1,000,000;
(2) a bar or suspension from association with a broker-dealer
or investment adviser registered in this state;
(3) an order requiring the person to pay restitution for any loss or disgorge
any profits arising from the violation, including,
in the administrator's discretion, the assessment of interest
from the date of the violation
at the rate provided for interest on
judgments by K.S.A. 16-204, and amendments thereto; or
(4) an order charging the person with the actual cost of the
investigation or proceeding.
(c) Procedures for orders. (1) An order under subsection (b)
shall not be entered unless the administrator first provides notice
and opportunity for hearing in accordance with the provisions of the
Kansas administrative procedures act.
(2) An order under subsection (a) is effective on the date of
issuance. Upon issuance of the order, the administrator shall
promptly serve each person subject to the order with a copy of the
order. The order must include a statement of the reasons for the
order and notice that upon receipt of a written request the matter
will be set for a hearing which shall be conducted in accordance
with the provisions of the Kansas administrative procedures act.
If a person subject to the order does not request a hearing and none
is ordered by the administrator within 30 days after the date of
service of the order, the order becomes final as to that person by
operation of law. If a hearing is requested or ordered, the
administrator, after notice of and opportunity for hearing to each
person subject to the order, may modify or vacate the order or
extend it until final determination.
(3) An order under subsection (a) may contain a notice of the
administrator's intent to seek administrative sanctions or remedies under
subsection (b). If the person subject to the order does not
request a hearing and none is ordered by the administrator within
30 days after service of the order, the administrator may modify the
order to include sanctions or remedies under subsection (b). If a
hearing is requested or ordered, the administrator, after notice and
opportunity for hearing, shall by written findings of fact and
conclusions of law vacate, modify, or make permanent the order, and
the administrator may modify the order to include sanctions or
remedies under subsection (b).
(d) Filing of certified final order with court; effect of
filing. If a petition for judicial review of a final order is not
filed in accordance with
K.S.A. 17-12a609, and amendments thereto,
the
administrator 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.
(e) Enforcement by court; further civil penalty. If a person
does not comply with an order under this section, the administrator
may petition a court of competent jurisdiction to enforce the order.
The court may not require the administrator to post a bond in an
action or proceeding under this section. If the court finds, after
service and opportunity for hearing, that the person was not in
compliance with the order, the court may adjudge the person in civil
contempt of the order. The court may impose a further civil penalty against
the person for contempt in an amount not greater than
$25,000 for each violation and may grant any other relief the court
determines is just and proper in the circumstances.