Code of Virginia - Title 13.1 Corporations - Section 13.1-521 Violations punishable by the Commission

§ 13.1-521. Violations punishable by the Commission

A. The Commission may, by judgment entered after a hearing on thirty days' notice to the defendant, if it is proved that the defendant has knowingly made any misrepresentation of a material fact for the purpose of inducing the Commission to take any action or to refrain from taking action, or has violated any provision of this chapter or any order, rule, or regulation of the Commission issued pursuant to this chapter, impose a civil penalty not exceeding $5,000, which shall be collectible by the process of the Commission as provided by law.

B. In addition to imposing the penalty set forth in subsection A, or without imposing such penalty, the Commission may, in any such case, revoke any authority or registration issued by the Commission to or at the instance of the defendant.

C. Each sale of a security contrary to the provisions of this chapter shall constitute a separate violation. The Commission may request the seller to rescind any such sale and to make restitution to the purchaser. If the seller complies with the request, the Commission shall consider such compliance in determining whether a penalty should be imposed on him on account of that illegal sale, and if so, the amount of such penalty.

D. Each investment advisory contract, transaction or activity contrary to the provisions of this chapter shall constitute a separate violation. The Commission may request the investment advisor or investment advisor representative to rescind any such contract or transaction and to make restitution to the user of the investment advisory service, and if the investment advisor or investment advisor representative complies with the request, the Commission shall consider such compliance in determining whether a penalty should be imposed on him on account of that illegal contract, transaction or activity and, if so, the amount of such penalty.

(Code 1950, § 13-153; 1956, c. 428; 1987, c. 678; 1990, c. 31; 2000, c. 166.)

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Last modified: April 2, 2009