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.
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