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House Bill 2342 |
House Author: Truitt |
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Effective: 9-1-11 |
Senate Sponsor: Watson |
House Bill 2342 amends The Securities Act to add to the acts that are subject to the assessment of an administrative fine by the securities commissioner. The bill increases the limit on the amount of an administrative fine assessed by the commissioner, together with the amount of a certain civil penalty, to an amount not to exceed the greater of $20,000 per violation or the gross amount of any economic benefit gained by the person or company as a result of the act or practice for which the fine was assessed and, if the act or practice was committed against a person 65 years of age or older, an additional amount of not more than $250,000.
House Bill 2342, in a provision specifying penalties for certain felony offenses under The Securities Act, classifies such offenses as third degree felonies, second degree felonies, first degree felonies, or state jail felonies, as applicable, and removes provisions describing the various penalties for a conviction of such offenses. Among other provisions, the bill authorizes an enhancement of a conviction of such offenses for repeat or habitual offenders.
House Bill 2342 makes the attorney general's authorization to seek equitable relief for a victim of fraudulent practice subject to a request of the commissioner and authorizes the attorney general to seek the disgorgement of any economic benefit gained by a defendant through an act or practice that violates The Securities Act or for which The Securities Act provides the commissioner or the attorney general with a remedy. The bill authorizes the court to order the defendant to deliver to each victim of such an act or practice the amount of money or the property that the defendant obtained from the victim.
House Bill 2342 authorizes the attorney general, on the request of the commissioner, to seek a civil penalty and a certain administrative fine in a specified amount for a violation of The Securities Act and enhances the penalty if the violation was committed against a person 65 years of age or older. The bill authorizes the attorney general to recover reasonable costs and expenses incurred by the attorney general in bringing such an action.