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Texas Vernon's Texas Civil Statutes - Article 581-23. Cease And Desist Orders; Cease Publication Orders; List Of Securities Offered

Legal Research Home > Texas Lawyer > Vernon's Texas Civil Statutes > Texas Vernon's Texas Civil Statutes - Article 581-23. Cease And Desist Orders; Cease Publication Orders; List Of Securities Offered

Art. 581-23. CEASE AND DESIST ORDERS;  CEASE PUBLICATION 
ORDERS;  LIST OF SECURITIES OFFERED.  Anything in this Act to the 
contrary notwithstanding,
	A. If it appears to the commissioner at any time that the sale 
or proposed sale or method of sale of any securities, whether exempt 
or not, is a fraudulent practice or would not be in compliance with 
this Act or would tend to work a fraud on any purchaser thereof or 
would not be fair, just or equitable to any purchaser thereof, the 
commissioner may hold a hearing on a date determined by the 
commissioner within 30 days after the date of receipt of actual 
notice by, or notice by registered or certified mail to the person's 
last known address is given to, the issuer, the registrant, the 
person on whose behalf such securities are being or are to be 
offered, or any person acting as a dealer or agent in violation of 
this Act.  If the commissioner shall determine at such hearing that 
such sale would not be in compliance with the Act, is a fraudulent 
practice, or would tend to work a fraud on any purchaser thereof or 
would not be fair, just or equitable to any purchaser thereof, the 
commissioner may issue a written cease and desist order, 
prohibiting or suspending the sale of such securities or denying or 
revoking the registration of such securities, prohibiting an 
unregistered person from acting as a dealer or an agent, or 
prohibiting the fraudulent conduct.  No dealer or agent shall 
thereafter knowingly sell or offer for sale any security named in 
such cease and desist order.
	B. If it appears to the Commissioner at any time that an 
investment adviser or investment adviser representative is 
engaging or is likely to engage in fraud or a fraudulent practice 
with respect to rendering services as an investment adviser or 
investment adviser representative or that a person is acting as an 
investment adviser or investment adviser representative in 
violation of this Act, the Commissioner may hold a hearing not later 
than the 30th day after the date on which the person receives actual 
notice or is provided notice by registered or certified mail, 
return receipt requested, to the person's last known address.  
After the hearing, the Commissioner shall issue or decline to issue 
a cease and desist order.  An order issued under this subsection 
must:
	(1)  require the investment adviser or investment adviser 
representative to immediately cease and desist from the fraudulent 
conduct;  or
	(2)  prohibit an unregistered or other unauthorized person 
who is not exempt from the registration or notice filing 
requirements of this Act from acting as an investment adviser or 
investment adviser representative in violation of this Act.
	C. If it appears to the Commissioner at any time that an offer 
contains any statement that is materially false or misleading or is 
otherwise likely to deceive the public, the Commissioner may issue 
a cease publication order.  No person shall make an offer prohibited 
by such cease publication order.
	D.  The commissioner may, in the exercise of reasonable 
discretion hereunder, at any time, require a dealer to file with the 
commissioner a list of securities which he has offered for sale or 
has advertised for sale within this State during the preceding six 
months, or which he is at the time offering for sale or advertising, 
or any portion thereof.

Acts 1957, 55th Leg., p. 575, ch. 269, Sec. 23.                               

Amended by Acts 1973, 63rd Leg., p. 216, ch. 97, Sec. 1, eff. Aug. 
27, 1973;  Acts 1979, 66th Leg., p. 359, ch. 160, Sec. 6, eff. May 
15, 1979;  Acts 1987, 70th Leg., ch. 732, Sec. 2, eff. Sept. 1, 1987;  
Acts 1989, 71st Leg., ch. 733, Sec. 6, eff. Sept. 1, 1989;  Acts 
1995, 74th Leg., ch. 228, Sec. 12, eff. Sept. 1, 1995;  Acts 2001, 
77th Leg., ch. 1091, Sec. 3.03, eff. Sept. 1, 2001.

Last modified: August 10, 2007