51-23-11. Investigations.
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/nd/title-51/chapter-51-23-commodities-transactions/51-23-11·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. The commissioner may make investigations, within or without this state, as the
commissioner finds necessary or appropriate to:
a. Determine whether any person has violated, or is about to violate, any provision
of this chapter or any rule or order of the commissioner.
b. Aid in enforcement of this chapter.
2. The commissioner may publish information concerning any violation of this chapter or
any rule or order of the commissioner.
3. For purposes of any investigation or proceeding under this chapter, the commissioner
or any officer or employee designated by rule or order, may administer oaths and
affirmations, subpoena witnesses, compel their attendance, take evidence, and require
the production of any books, papers, correspondence, memoranda, agreements, or
other documents or records which the commissioner finds to be relevant or material to
the inquiry. 4. a. If a person does not give testimony or produce the documents required by the
commissioner or a designated employee pursuant to an administrative subpoena,
the commissioner or designated employee may apply for a court order compelling
compliance with the subpoena or the giving of the required testimony.
b. The request for order of compliance may be addressed to either:
(1)The district court of Burleigh County, North Dakota, or the district court of
any county in this state, where service may be obtained on the person
refusing to testify or produce, if the person is within this state; or
(2)The appropriate court of the state having jurisdiction over the person
refusing to testify or produce, if the person is outside this state.
51-23-12. Enforcement of chapter. 1. If the commissioner believes, whether or not based upon an investigation conducted
under section 51-23-11, that any person has engaged or is about to engage in any act
or practice constituting a violation of any provision of this chapter or any rule or order
hereunder, the commissioner may:
a. Issue a cease and desist order;
b. Issue an order imposing a civil penalty in an amount which may not exceed ten
thousand dollars for any single violation or one hundred thousand dollars for
multiple violations in a single proceeding or a series of related proceedings; and
c. Initiate any of the actions specified in subsection 2. 2. The commissioner may institute any of the following actions in the appropriate courts
of this state, or in the appropriate courts of another state, in addition to any legal or
equitable remedies otherwise available:
a. A declaratory judgment;
b. An action for a prohibitory or mandatory injunction to enjoin the violation and to
ensure compliance with this chapter or any rule or order of the commissioner;
c. An action for disgorgement; and
d. An action for appointment of a receiver or conservator for the defendant or the
defendant's assets.
51-23-13. Power of court to grant relief. 1. a. Upon a proper showing by the commissioner that a person has violated, or is
about to violate, any provision of this chapter or any rule or order of the
commissioner, the district court of Burleigh County, North Dakota, may grant
appropriate legal or equitable remedies.
b. Upon showing of violation of this chapter or a rule or order of the commissioner,
the court, in addition to traditional legal and equitable remedies, including
temporary restraining orders, permanent or temporary prohibitory or mandatory
injunctions, and writs of prohibition or mandamus, may grant the following special
remedies:
(1)Imposition of a civil penalty in an amount that may not exceed ten thousand
dollars for any single violation or one hundred thousand dollars for multiple
violations in a single proceeding or a series of related proceedings;
(2)Disgorgement;
(3)Declaratory judgment;
(4)Restitution to investors wishing restitution; and
(5)Appointment of a receiver or conservator for the defendant or the
defendant's assets.
c. Appropriate remedies when the defendant is shown only about to violate this
chapter or a rule or order of the commissioner must be limited to:
(1)A temporary restraining order;
(2)A temporary or permanent injunction;
(3)A writ of prohibition or mandamus; and
(4)An order appointing a receiver or conservator for the defendant or the
defendant's assets. 2. The court may not require the commissioner to post a bond in any official action under
this chapter. 3. a. Upon a proper showing by the commissioner or securities or commodity agency
of another state that a person other than a government or governmental agency
or instrumentality has violated, or is about to violate, any provision of the
commodity code of that state or any rule or order of the administrator or securities
or commodity agency of that state, the district court of Burleigh County, North
Dakota, may grant appropriate legal and equitable remedies.
b. Upon showing of a violation of the securities or commodity act of the foreign state
or a rule or order of the administrator or securities or commodity agency of the
foreign state, the court, in addition to traditional legal or equitable remedies
including temporary restraining orders, permanent or temporary prohibitory or
mandatory injunctions, and writs of prohibition or mandamus, may grant the
following special remedies:
(1)Disgorgement; and
(2)Appointment of a receiver, conservator, or ancillary receiver or conservator
for the defendant or the defendant's assets located in this state.
c. Appropriate remedies when the defendant is shown only about to violate the
securities or commodity act of the foreign state or a rule or order of the
administrator or securities or commodity agency of the foreign state must be
limited to:
(1)A temporary restraining order;
(2)A temporary or permanent injunction;
(3)A writ of prohibition or mandamus; and
(4)An order appointing a receiver, conservator, or ancillary receiver or
conservator for the defendant or the defendant's assets located in this state.
51-23-14. Criminal penalties. 1. Any person who willfully violates any provision of this chapter, or any rule or order of
the commissioner under this chapter, is guilty of a class B felony. 2. Any person convicted of violating a rule or order under this chapter may be fined, but
may not be imprisoned, if the person proves the person had no knowledge of the rule
or order.
51-23-15. Administration of chapter. 1. This chapter must be administered by the insurance commissioner. 2. Neither the commissioner nor any employees of the commissioner may use any
information which is filed with or obtained by the commissioner which is not public
information for personal gain or benefit, nor may the commissioner nor any employees
of the commissioner conduct any securities or commodity dealings whatsoever based
upon any such information, even though public, if there has not been a sufficient
period of time for the securities or commodity markets to assimilate such information. 3. a. Except as provided in subdivision b, all information collected, assembled, or
maintained by the commissioner is public information and is available for the
examination of the public.
b. The commissioner may keep confidential information obtained in private
investigations pursuant to this chapter and information obtained from federal
agencies which may not be disclosed under federal law.
c. No provision of this chapter either creates or derogates any privilege which exists
at common law, by statute, or otherwise when any documentary or other
evidence is sought under subpoena directed to the commissioner or any
employee of the commissioner.