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Texas Vernon's Texas Civil Statutes - Article 581-23-2. Emergency Cease And Desist Order

Legal Research Home > Texas Lawyer > Vernon's Texas Civil Statutes > Texas Vernon's Texas Civil Statutes - Article 581-23-2. Emergency Cease And Desist Order

Art. 581-23-2. EMERGENCY CEASE AND DESIST ORDER.  A. On the 
Commissioner's determination that the conduct, act, or practice 
threatens immediate and irreparable public harm, the Commissioner 
may issue an emergency cease and desist order to a person whom the 
Commissioner reasonably believes:
	(1)  is engaging in or is about to engage in fraud or a 
fraudulent practice in connection with:
	(A)  the offer for sale or sale of a security;  or                             
	(B)  the rendering of services as an investment adviser or 
investment adviser representative;
	(2)  has made an offer containing a statement that is 
materially misleading or is otherwise likely to deceive the public;  
or
	(3)  is engaging or is about to engage in an act or practice 
that violates this Act or a Board rule.
	B. The order must:                                                             
	(1)  be sent on issuance to each person affected by the order 
by personal delivery or registered or certified mail, return 
receipt requested, to the person's last known address;
	(2)  state the specific charges and require the person to 
immediately cease and desist from the unauthorized activity;  and
	(3)  contain a notice that a request for hearing may be filed 
under this section.
	C. Unless a person against whom the emergency order is 
directed requests a hearing in writing before the 31st day after the 
date it is served on the person, the emergency order is final and 
nonappealable as to that person.  A request for a hearing must:
	(1)  be in writing and directed to the Commissioner;  and                      
	(2)  state the grounds for the request to set aside or modify 
the order.     
	D. On receiving a request for a hearing, the Commissioner 
shall serve notice of the time and place of the hearing by personal 
delivery or registered or certified mail, return receipt requested.  
The hearing must be held not later than the 10th day after the date 
the Commissioner receives the request for a hearing unless the 
parties agree to a later hearing date.  At the hearing, the 
Commissioner has the burden of proof and must present evidence in 
support of the order.
	E. After the hearing, the Commissioner shall affirm, modify, 
or set aside in whole or part the emergency order.  An order 
affirming or modifying the emergency order is immediately final for 
purposes of enforcement and appeal.
	F. An emergency order continues in effect unless the order is 
stayed by the Commissioner.  The Commissioner may impose any 
condition before granting a stay of the order.

Added by Acts 2001, 77th Leg., ch. 1091, Sec. 3.05, eff. Sept. 1, 
2001.     

Last modified: August 10, 2007