2023 Oregon Revised Statutes › Volume : 02 - Business Organizations, Commercial Code › Chapter 059 - Securities Regulation › Section 59.245 - Investigations; publicity with respect to violations; confidentiality of materials; exceptions; cease and desist order.

(1) The Director of the Department of Consumer and Business Services may:
(a) Make such public or private investigations within or outside this state as the director deems necessary to determine whether a person has violated or is about to violate any provision of the Oregon Securities Law or any rule or order of the director, or to aid in the enforcement of the Oregon Securities Law or in the formulation of rules and forms thereunder;
(b) Make any proper inquiry of a person that is licensed or required to be licensed as a broker-dealer, salesperson, investment adviser representative or state investment adviser, or any officer, partner, director or authorized representative of a broker-dealer, salesperson, investment adviser representative or state investment adviser, in relation to the activities or condition of the broker-dealer, salesperson, investment adviser representative or state investment adviser or in relation to any other matter connected with offering, purchasing or selling any security or conducting a securities business;
(c) Require or permit a person to file a statement in writing, under oath or otherwise as the director determines, as to all the facts and circumstances concerning the matter to be investigated; and
(d) Publish information concerning any violation of the Oregon Securities Law or any rule or order of the director.
(2) A person shall promptly and truthfully reply to an inquiry from the director in relation to any matter connected directly or indirectly with an offer, purchase or sale of any security or the conduct of a securities business. The person shall reply using the form of communication the director requests, and the person shall verify the reply in the manner and form that the director specifies. A person’s reply under this subsection is subject to the provisions of ORS 59.135 (4) and 59.451.
(3) If the director has reason to believe that any person has engaged, is engaging or is about to engage in any violation of the Oregon Securities Law, the director may issue an order, subject to ORS 59.295, directed to the person to cease and desist from the violation or threatened violation.
(4) Except as provided in subsections (5) to (8) of this section, the following documents, material and other information are confidential and may not be disclosed except as provided in ORS 705.137:
(a) Any tip, complaint or referral made to the director against any person that is subject to the director’s general supervision under ORS 59.235 and the record of the tip, complaint or referral;
(b) Any examination made by the director under the Oregon Securities Law and the record of the examination, including any documents, material and other information the director gathers, compiles or creates in connection with the examination, but excluding any final report of the examination; and
(c) Any investigation or inquiry the director makes under the Oregon Securities Law and the record of the investigation or inquiry, including any documents, material or other information the director gathers, compiles or creates in connection with the investigation or inquiry, but only during the pendency of the investigation or inquiry or during the pendency of a related action, suit or proceeding by the director, the Attorney General or other government entity to enforce a provision of the Oregon Securities Law or a rule or order of the director.
(5) The director may use documents, materials and other information that are confidential under subsection (4) of this section to the extent that the director considers necessary in investigating or prosecuting apparent violations of the Oregon Securities Law and as otherwise provided in ORS 705.137.
(6) Notwithstanding ORS 40.270, an officer of the Department of Consumer and Business Services may be examined concerning records that are exempt from disclosure under subsection (4) of this section and the records are subject to examination and production if a court or arbitrator finds that the examination and production are essential for establishing a claim or defense in a civil or criminal action or an arbitration, or that a person other than the director possessed or controlled the records but the person is not available, cannot produce the records or make the records available for examination or is not subject to subpoena in this state. In making a finding under this subsection, a court or arbitrator may view in camera the records the court or arbitrator requires to be produced.
(7) If the director, in the director’s sole discretion, determines that disclosure is necessary to protect the public interest, the director may make available the records described in subsection (4) of this section.
(8) Subsection (4) of this section does not prevent disclosure of documents, material or other information that a person other than the director possesses or controls or make the documents, material or other information confidential or subject to ORS 705.137. [1967 c.537 §22; 1973 c.366 §6; 1999 c.315 §2; 2007 c.71 §14; 2023 c.494 §1]