Oklahoma § 71-406 - Repealed by Laws 2003, c. 347, § 53, eff. July 1, 2004

§ 71-406. Repealed by Laws 2003, c. 347, § 53, eff. July 1, 2004

NOTE: Prior to repeal, this section was amended to read as follows:

(a) If the Administrator reasonably believes, whether or not

based upon an investigation conducted under Section 405 of this

title, that a person has violated the Oklahoma Securities Act,

except under the provisions of Section 202.1 or 305.2 of this title,

or a rule or order of the Administrator under the Oklahoma

Securities Act or has engaged in dishonest or unethical practices in

the securities business, the Administrator, in addition to any

specific power granted by any other section of the Oklahoma

Securities Act, may impose one or more of the following sanctions:

(1) issue an order against the person to cease and desist from

engaging in such violation or dishonest or unethical practices or

doing any act in furtherance thereof;

(2) censure the person, if the person is a registered brokerdealer, agent, investment adviser, or investment adviser

representative;

(3) bar or suspend the person from association with a brokerdealer or investment adviser subject to the provisions of the

Oklahoma Securities Act;

(4) place limitations on the activities, functions, or

operations of the person;

(5) issue an order against a person who willfully violates the

Oklahoma Securities Act or a rule or order of the Administrator

under the Oklahoma Securities Act, imposing a civil penalty up to a

maximum of Five Thousand Dollars ($5,000.00) for a single violation

or transaction or of Fifty Thousand Dollars ($50,000.00) for

multiple violations or transactions in a single proceeding or a

series of related proceedings; or

(6) recover the costs of the investigation conducted under

Section 405 of this title.

(b) Except as provided in subsection (e) of this section or

unless the right to notice and hearing is waived by the person

against whom the sanction is imposed, the sanctions provided in

subsection (a) of this section may be imposed only after notice and

hearing as required by the Administrative Procedures Act. If the

person to whom notice is addressed does not request a hearing within

fifteen (15) days after the service of notice is effective, a final

order may be issued.

(c) Imposition of the sanctions under this section is limited

as follows:

(1) If the Administrator revokes the effectiveness of the

registration of a broker-dealer, agent, investment adviser or

investment adviser representative under Section 204 of this title or

bars a person from association with a broker-dealer or investment

Oklahoma Statutes - Title 71. Securities

adviser under this section or Section 204 of this title, the

imposition of that sanction precludes imposition of the sanction

specified in paragraph (5) of subsection (a) of this section; and

(2) The imposition by the Administrator of one or more

sanctions under subsection (a) of this section with respect to a

specific violation or transaction precludes the Administrator from

later imposing any other sanctions under paragraphs (1) through (5)

of subsection (a) of this section with respect to the violation or

transaction. The Administrator however is not precluded from

bringing an action under Section 406.1 of this title in addition to

the imposition of one or more sanctions under subsection (a) of this

section with respect to the violation or transaction.

(d) For purposes of determining any sanction to be imposed

under paragraphs (1) through (5) of subsection (a) of this section,

the Administrator shall consider, among other factors, the frequency

and persistence of the conduct constituting a violation of the

Oklahoma Securities Act or a rule or order of the Administrator

under the Oklahoma Securities Act or involving dishonest or

unethical practices in the securities business, the number of

persons adversely affected by the conduct, and the resources of the

person committing the violation.

(e) (1) If the Administrator makes written findings of fact to

support the conclusion that the public interest will be harmed by

delay in issuing a cease and desist order pursuant to paragraph (1)

of subsection (a) of this section, the Administrator may issue a

summary order to cease and desist pending final determination of any

proceeding under this section.

(2) Upon the entry of the summary order, the Administrator

shall promptly notify the person subject to the summary order:

(A) that the summary order has been entered and the

reasons therefor;

(B) that the person subject to the summary order, if

desiring a hearing, must make written request for a

hearing to the Administrator within fifteen (15) days

after service of the notice is effective;

(C) that within fifteen (15) days after receipt by the

Administrator of a written request the matter will be

set for hearing to determine whether the summary order

should be modified, vacated or extended pending final

determination of any proceeding under paragraph (1) of

subsection (a) of this section; and

(D) that a hearing shall be commenced within fifteen (15)

days of the matter being set for hearing.

(3) The summary order shall remain in effect until the

conclusion of the hearing on the summary order unless the

Administrator or the Administrator’s designee extends the summary

order pending a final determination of any proceeding under

Oklahoma Statutes - Title 71. Securities

paragraph (1) of subsection (a) of this section. If no hearing is

requested within thirty (30) days after service of the summary order

and none is ordered by the Administrator, the summary order becomes

final by operation of law. If a request for hearing on the summary

order is timely made and if the hearing is not commenced by the

Administrator within the time limit set forth herein, the summary

order shall dissolve and a final order shall not be issued pursuant

to paragraph (1) of subsection (a) of this section except upon

reasonable notice and opportunity for a hearing.

Added by Laws 1959, p. 344, § 406, eff. July 1, 1959. Amended by

Laws 1984, c. 130, § 1, operative Nov. 1, 1984; Laws 1987, c. 145, §

1, eff. Nov. 1, 1987; Laws 1988, c. 108, § 17, eff. Nov. 1, 1988;

Laws 1990, c. 71, § 3, eff. Sept. 1, 1990; Laws 1995, c. 196, § 16,

eff. July 1, 1995; Laws 1997, c. 279, § 16, eff. July 1, 1997; Laws

1998, c. 152, § 9, eff. July 1, 1998; Laws 1999, c. 109, § 6, eff.

July 1, 1999; Laws 2003, c. 493, § 6, eff. Nov. 1, 2003.