2003 -- S 0437
RELATING TO SECURITIES
Introduced By: Senator Kevin A. Breene
Date Introduced: February 13, 2003
SECTION 1. Section 7-11-602 of the General Laws in Chapter 7-11 entitled "Rhode
Island Uniform Securities Act" is hereby amended to read as follows:
7-11-602. Enforcement. -- (a) If the director reasonably believes, whether or not based
upon an investigation conducted under section 7-11-601, that any person has engaged, is
engaging, or is about to engage in any act or practice constituting a violation of any provision of
this chapter or any rule or order under this chapter, the director, in addition to any specific power
granted under this chapter and subject to compliance with the requirements of section 7-11-712,
may issue, without a prior hearing, an order against the person or persons engaged in the
prohibited activities, directing them to desist and refrain from further illegal activity. The cease
and desist order shall state the section of this chapter or rule or order of the director under this
chapter which the director reasonably believes has been or is being violated.
(b) If the director reasonably believes, whether or not based on an investigation
conducted under section 7-11-601, that a person has violated this chapter or a rule or order of the
director under this chapter, the director may, in addition to any specific power granted under this
chapter, after notice and hearing in an administrative proceeding unless the right to notice and
hearing is waived by the person against whom the sanction is imposed:
(1) Issue a cease and desist order against the person;
(2) Censure the person if the person is a licensed broker dealer, sales representative,
investment adviser, or investment adviser representative;
(3) Bar or suspend the person from association with a licensed broker dealer or
investment adviser in this state; and
(4) Issue an order against an applicant, licensed person, or other person who violates this
chapter or a rule or order of the director under this chapter, imposing a civil penalty up to a
maximum of ten thousand dollars
($10,000) for a single violation.
or of one hundred thousand dollars ($100,000) for multiple
violations in a single proceeding or a series of related proceedings.
(c) For purposes of determining what sanctions, if any, to be imposed under subsection
(b)(1) through (b)(4) of this section, the director shall consider, among other factors, the
frequency and persistence of the conduct constituting a violation of this chapter or a rule or order
of the director under this chapter, the number of persons adversely affected by the conduct, and
the resources of the person committing the violation.
SECTION 2. This act shall take effect upon passage.