AK Stat § 45.56.690 (2021)
2021 Alaska Statutes|Title 45. Trade and Commerce|Chapter 56. Alaska Securities Act|Article 4. Administration and Judicial Review.|Sec. 45.56.690. Administrative enforcement.

(a) If the administrator determines that a person has engaged, is engaging, or is about to engage in an act, practice, or course of business constituting a violation of this chapter or a regulation adopted or order issued under this chapter or that a person has materially aided, is materially aiding, or is about to aid materially an act, practice, or course of business constituting a violation of this chapter or a regulation adopted or order issued under this chapter, the administrator may issue an order (1) directing the person to cease and desist from engaging in the act, practice, or course of business or to take other action necessary or appropriate to comply with this chapter; (2) denying, suspending, revoking, or conditioning the exemptions for a broker-dealer under AS 45.56.300(b)(1)(D) or (F) or an investment adviser under AS 45.56.340(b)(1)(C); or (3) denying, suspending, conditioning, or limiting an exemption as provided under AS 45.56.160. (b) An order under (a) of this section is effective on the date of issuance. Upon issuance of the order, the administrator shall promptly serve each person subject to the order with a copy of the order and a notice that the order has been entered. The order must include a statement of any civil penalty, restitution, or costs of investigation the administrator will seek, a statement of the reasons for the order, and notice that, within 15 days after receipt of a request in a record from the person, the matter will be scheduled for a hearing. If a person subject to the order does not request a hearing and none is ordered by the administrator within 30 days after the date of service of the order, the order, including the imposition of a civil penalty, the imposition of restitution, or requirement for payment of the costs of investigation sought in a statement in the order, becomes final as to that person by operation of law. If a hearing is requested or ordered, the administrator, after notice of and opportunity for hearing provided to each person subject to the order, may modify or vacate the order or extend it until final determination. (c) If a hearing is requested or ordered under (b) of this section, a hearing shall be conducted by the office of administrative hearings (AS 44.64.010), and AS 44.64.040 - 44.64.200 apply to and govern the hearing. (d) In a final order under (b) of this section, the administrator may impose a civil penalty of not more than $100,000 for a single violation, unless the violation of this chapter is against an older person or a vulnerable adult. In addition to a civil penalty imposed under this subsection, a person or entity who engages in conduct prohibited under this chapter against an older person or a vulnerable adult may be liable for an additional civil penalty of treble statutory damages. In determining whether to impose a supplemental civil penalty under this subsection, the administrator shall consider, in addition to other appropriate factors, the extent to which the following factors are present: (1) whether the respondent knew that the respondent's conduct was directed to an older person or a vulnerable adult; (2) whether the respondent's conduct caused an older person or a vulnerable adult to suffer (A) severe loss or encumbrance of a primary residence, principal employment, or source of income; or (B) substantial loss of property set aside for retirement or for personal and family care and maintenance; or (3) whether the respondent's conduct caused substantial loss of payments received under a pension or retirement plan or a government benefits program. (e) In a final order under (b) of this section, the administrator may (1) impose restitution to any person in interest for any money or property, real or personal, that may have been acquired or transferred in violation of this chapter; (2) charge the actual cost of an investigation or proceeding for a violation of this chapter or a regulation adopted or order issued under this chapter; and (3) deny the violator the use of any exemptions listed under this chapter. (f) The administrator may petition the superior court to enter a judgment against a person who is a respondent in the order for the amount of the civil penalty levied against the person. Subject to AS 44.62.570, the filing of the petition for a judgment does not reopen the final order to further substantive review. A judgment entered under this subsection may be executed on and levied under in the manner provided in AS 09.35. (g) If a person does not comply with an order under this section, the administrator may petition a court of competent jurisdiction to enforce the order. The court may not require the administrator to post a bond in an action or proceeding under this section. If the court finds, after service and opportunity for hearing, that the person was not in compliance with the order, the court may adjudge the person in civil contempt of the order. The court may impose a further civil penalty against the person for contempt in an amount not less than $5,000 but not greater than $100,000 for each violation and may grant any other relief the court determines is just and proper in the circumstances.