2023 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.