Compilation of Rules and Regulations of the State of Georgia › Department 590 - RULES OF OFFICE OF SECRETARY OF STATE › Chapter 590-4 - COMMISSIONER OF SECURITIES › Subject 590-4-1 - GENERAL PROVISIONS › Rule 590-4-1-.10 - Enforcement Procedures

Current through Rules and Regulations filed through June 27, 2024
(1) Formal Orders of Investigation. The
				Commissioner may, at any time, whether based upon a complaint, referral, tip or
				other information and belief, issue a formal order of investigation that shall
				commence such public or private investigation within or outside this State, as
				he or she deems necessary, to determine whether any person has violated or is
				about to violate the Act or any Rule, Regulation, or order created under the
				Act or to aid in the enforcement of the Act or in the prescribing of Rules and
				Regulations thereunder. However, a formal order of investigation is not
				necessary for the Commissioner to commence an investigation.
(2) Referrals. The Commissioner may, at any
				time, whether by complaint or otherwise, or based on information or belief,
				transmit a civil or criminal referral investigative report and evidence of
				violations of the Act to any federal or state regulator, prosecutor or other
				appropriate law enforcement agency for the purpose of instituting any necessary
				civil or criminal proceedings.
(3)
				Appointment of an auditor, examiner, or regulatory monitor. In addition to
				those administrative sanctions the Commissioner may impose pursuant to Code
				Section
				 10-5-73, the Commissioner may issue an order for the appointment of an individual
				qualified by education and experience as an auditor, examiner, or regulatory
				monitor and assess the costs incurred to the person or entity that is the
				subject of the audit, examination or regulatory monitoring.
(4) Report of Examination or Inspection. The
				Commissioner, within his or her sole discretion, may accept or reject such
				examination or inspection, in whole or in part. If the report is accepted, the
				Commissioner shall file said report in the public records of the Commissioner.
				The Commissioner may, within his or her sole discretion, accept or reject, in
				whole or in part, the recommendations of the independent examiner.
(5) Emergency Orders. Notwithstanding any
				other provision of the Act or the Rules, an emergency order under this Rule is
				effective on the date of issuance, provided that:
(a) The Commissioner deems that the public
				health, safety, or welfare imperatively requires emergency action and
				incorporates a finding to that effect in the emergency order, in which case the
				order may be effective immediately pending proceedings. The proceedings shall
				be promptly instituted;
(b) The
				order is issued pursuant to Sections
				 10-5-13,  10-5-25,  10-5-41,  10-5-73 or 
				 10-5-74 of  the Act; or
(c) The order is
				expressly required, by a judgment or a statute, to be made without the right to
				a hearing or continuance of any type.
Upon issuance of the order, the Commissioner 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
				 administrative sanction(s) that the Commissioner will seek, a statement of the
				 reasons for the order, and notice that, upon the request by any respondent
				 named in the emergency order, a hearing will be promptly scheduled. If a person
				 subject to the order does not request a hearing, and the Commissioner orders no
				 hearing within thirty (30) days after the date of service of the order, the
				 order shall become final as to that person by operation of law. If a hearing is
				 requested by any person subject to the emergency order, or is ordered by the
				 Commissioner, after notice and opportunity for hearing has been served upon
				 each person subject to the emergency order, the Commissioner may modify,
				 vacate, or extend the emergency order any time prior to a final
				 determination.