NY Gen Bus L § 359-G (2021)
2021 New York Laws GBS - General Business Article 23-A - Fraudulent Practices in Respect to Stocks, Bonds and Other Securities 359-G - Violations and Penalties.

§  359-g.  Violations  and  penalties. 1. (a) Any person, partnership, corporation, company, trust or association having been  served  with  an order  issued  pursuant  to  the provisions of section three hundred and fifty-four staying or enjoining any practices or transactions,  or  with any  order  or  with  a  final  judgement  in  an  action brought by the attorney-general, as in this article provided, staying or enjoining  any practices  or  transactions,  and  any person, partnership, corporation, company, trust or association having knowledge of the  issuance  of  any such  order  or judgment who, while such order or judgment is in effect, shall disobey the same, shall be deemed in contempt of court  and  shall be  guilty  of  a  misdemeanor  and  in  addition for every violation or attempted violation of such order or such judgment shall be liable to  a civil  penalty  of  three  thousand  dollars,  recoverable  in an action brought by and in the name of the people of the state of New York.  Such penalty  shall  be  cumulative  and  more  than  one  penalty  shall  be recoverable in the same action in any court of  competent  jurisdiction. Any  person, partnership, corporation, company, trust or association who has previously been convicted of a violation of this article, or who has been previously convicted within the five years  immediately  preceding, of  any  crime in this state, or any offense without the jurisdiction of this state for which a sentence to a term of imprisonment in  excess  of one  year  was  authorized,  and  which  crime  or  offense involved the issuance, distribution,  exchange,  sale,  negotiation  or  purchase  of securities   or   commodities,   by   fraud,   deception,   concealment, suppression, false pretense, false promise, theft or fictitious purchase or sale, or who has been previously found in contempt of court hereunder under this article and who subsequently violates the provisions of  this section  or  any  other  provision  of this article shall be guilty of a Class E felony.  (b) For purposes of this section  the  term  "security"  shall  be  as defined  in  this  article  or  in  section  two  of  the  United States Securities  Exchange  Act  of  1934,  15  U.S.C.  §  78c  and  the  term "commodity" shall be as defined in this article or in section two of the United States Commodities Exchange Act, 7 U.S.C. § 2.  (c)  An  appeal from an order or judgment entered under the provisions of this article shall not operate as a stay of  proceedings  to  enforce such order or judgment, or suspend the injunction thereby granted unless a  justice  of  the supreme court, assigned to the appellate division to which such appeal is taken, shall, upon notice to the  attorney-general, make an order granting such stay or suspending such injunction upon such terms as he deems proper.   2. Any person, partnership, corporation, company, trust or association violating  any  of  the  provisions of this article shall be guilty of a misdemeanor, except where otherwise provided  herein,  punishable  by  a fine of not more than five hundred dollars, or imprisonment for not more than one year or both.   3.  Modification  or dissolution of a permanent injunction. Any person against whom an injunction has been granted under the provisions of this article may apply to the supreme court at any time after five years from the date such permanent injunction became effective, upon at least sixty days notice to  the  attorney-general,  for  an  order  dissolving  such injunction  or  modifying the same upon such terms and conditions as the court deems necessary or desirable. Such application for dissolution  or modification  of such injunction shall contain a recitation of the facts and circumstances which caused  the  granting  of  the  injunction;  the occupation  and  employment of the person making the application and his financial remuneration therefrom  since  the  time  the  injunction  was granted;  his  net  worth  at the time of the application and the source  thereof, together with any other facts bearing upon  the  reasonableness of the application and the character of the applicant, as may enable the court  to  issue an order that will properly dispose of such application in  the  interests of justice. A copy of such application, together with copies of any other papers in support thereof, shall be served upon  the attorney-general  at  least sixty days prior to the return date thereof. In addition thereto the applicant shall file with the court a  good  and sufficient  surety  bond in the sum of one thousand dollars guaranteeing that he will pay all costs and  expenses  of  an  investigation  by  the attorney-general of such applicant and the statements and claims alleged in  the  application  together  with any further investigation which the attorney-general may deem necessary or desirable to determine whether he should consent to the application, oppose the same, or make  such  other recommendations  to  the  court  as  in  his opinion are desirable to be included in any modification of such injunction. Should it appear in the course of such investigation by the attorney-general that  said  sum  is not  sufficient,  the  attorney-general  may apply to the court by usual notice of motion or order to show cause for an increase in the amount of security or further surety bond necessary to fully pay all of the  costs of  the investigation and the court may require such further bond as the situation  requires  to  fully  pay  the  costs  and  expenses  of   the investigation.   Upon   the   completion   of  such  investigation,  the attorney-general may file an answer to such  application  setting  forth such  facts  as  are  pertinent to the determination by the court of the matter before it  and  whether  said  injunction  should  be  dissolved, modified  or  continued in whole or in part and what conditions, if any, shall be attached to any dissolution or modification of said injunction. After  a  hearing  upon  such  application   and   after   any   further investigation,  proof  or  testimony which the court may desire has been offered, or at any adjourned dates thereof, the court may make  a  final order  dissolving  the  permanent  injunction or modifying the same upon such terms and conditions as in its opinion are just and  desirable,  or in  its discretion, may deny the application. Such order shall contain a direction that the applicant pay to the attorney-general the  costs  and expenses of the investigation in connection with the proceeding, and any judgment  entered thereon may be enforced directly against the surety on the bond. The court shall grant no temporary or other  relief  from  the injunction  in  force pending a final determination of such application. No application under this subdivision shall be  entertained:  (a)  where the  injunction  was  granted  as  an  incident  to a crime of which the applicant had been or was later convicted, nor (b) in any case where the applicant has been convicted of a felony or a  crime  that  would  be  a felony  if  committed in the state of New York since the issuance of the injunction or (c) convicted at any time of any crime  involving  stocks, bonds,  investments,  securities,  or  like  instruments,  which are the subject matter of this article. Nor shall  anything  contained  in  this subdivision  be  construed to deny to or interfere with the power of the attorney-general to bring any  other  action  or  proceeding,  civil  or criminal, against the applicant at any time.