2006 Code of Virginia § 13.1-521 - Violations punishable by the Commission

13.1-521. Violations punishable by the Commission.

A. The Commission may, by judgment entered after a hearing on thirty days'notice to the defendant, if it is proved that the defendant has knowinglymade any misrepresentation of a material fact for the purpose of inducing theCommission to take any action or to refrain from taking action, or hasviolated any provision of this chapter or any order, rule, or regulation ofthe Commission issued pursuant to this chapter, impose a civil penalty notexceeding $5,000, which shall be collectible by the process of the Commissionas provided by law.

B. In addition to imposing the penalty set forth in subsection A, or withoutimposing such penalty, the Commission may, in any such case, revoke anyauthority or registration issued by the Commission to or at the instance ofthe defendant.

C. Each sale of a security contrary to the provisions of this chapter shallconstitute a separate violation. The Commission may request the seller torescind any such sale and to make restitution to the purchaser. If the sellercomplies with the request, the Commission shall consider such compliance indetermining whether a penalty should be imposed on him on account of thatillegal sale, and if so, the amount of such penalty.

D. Each investment advisory contract, transaction or activity contrary to theprovisions of this chapter shall constitute a separate violation. TheCommission may request the investment advisor or investment advisorrepresentative to rescind any such contract or transaction and to makerestitution to the user of the investment advisory service, and if theinvestment advisor or investment advisor representative complies with therequest, the Commission shall consider such compliance in determining whethera penalty should be imposed on him on account of that illegal contract,transaction or activity and, if so, the amount of such penalty.

(Code 1950, 13-153; 1956, c. 428; 1987, c. 678; 1990, c. 31; 2000, c. 166.)