N.D. Cent. Code § 10-04-11

10-04-11. Suspension or revocation of broker-dealer's, agent's, investment adviser's,

and investment adviser representative's registration.

1. The commissioner may censure, place limitations on the activities of, suspend for a

period not exceeding twelve months, or revoke the registration of any broker-dealer,

agent, investment adviser, or investment adviser representative or any partner, officer,

or director, any person occupying a similar status or performing similar functions, or

any person directly or indirectly controlling the broker-dealer or investment adviser if,

after a hearing or opportunity for hearing as provided in section 10-04-12, the

commissioner finds that such registered broker-dealer, agent, investment adviser, or

investment adviser representative:

a. Has violated or failed to comply with any provisions of this chapter or any order or

rule of the commissioner under this chapter;

b. Is, in the case of a broker-dealer or investment adviser, insolvent;

c. Has engaged in dishonest, fraudulent, or unethical practices in the securities

business;

d. Conducts business in purchasing or selling securities at such variations from

current market prices as, in light of all the circumstances, are unconscionable or

unfair to the purchasing public, or if such variance, including commissions on

sales, unreasonably exceeds the price quoted by a recognized national quotation

list as prescribed by the commissioner;

e. Has failed to file with the department any financial record required pursuant to

section 10-04-10.3, or has refused to permit or has otherwise impeded an

examination into the person's affairs as provided by section 10-04-10.3 and

subsection 3;

f. Has filed an application for registration which, as of its effective date or as of any

date after filing in the case of an order denying effectiveness, was incomplete in

any material respect or contained any statement which was, in light of the

circumstances under which it was made, false or misleading with respect to any

material fact;

g. Has been convicted of an offense determined by the commissioner to have a

direct bearing upon a person's ability to serve the public as a broker-dealer,

agent, investment adviser, or investment adviser representative, or the

commissioner finds that a person, following conviction of any offense, is not

sufficiently rehabilitated under section 12.1-33-02.1;

h. Is permanently or temporarily enjoined by any court of competent jurisdiction from

engaging in or continuing any conduct or practice involving any aspect of the

securities business;

i. Is the subject of an order of the commissioner denying, suspending, or revoking

registration as a broker-dealer, agent, investment adviser, or investment adviser

representative;

j. Is the subject of an order entered by the securities administrator of any other

state or by the securities and exchange commission denying or revoking

registration as a broker-dealer, agent, investment adviser, or investment adviser

representative, or the substantial equivalent of those terms as defined in this

chapter, or is the subject of an order suspending or expelling membership in or

association with a member of a self-regulatory organization registered under the

Securities Exchange Act of 1934, the Commodity Exchange Act, or the

Investment Advisers Act of 1940; or is the subject of a United States post-office

fraud order;

k. Has, in connection with the offer, sale, or purchase of any security, directly or

indirectly, effected a series of transactions creating actual or apparent active

trading in any security, or to raise or depress the price of a security, for the

purpose of inducing the purchase or sale of the security;

l. Is not qualified on the basis of such factors as training, experience, and

knowledge of the securities business;

m. Has failed reasonably to supervise the person's agents if the person is a
ted a series of transactions creating actual or apparent active

trading in any security, or to raise or depress the price of a security, for the

purpose of inducing the purchase or sale of the security;

l. Is not qualified on the basis of such factors as training, experience, and

knowledge of the securities business;

m. Has failed reasonably to supervise the person's agents if the person is a

broker-dealer or the person's employees or investment adviser representatives if

the person is an investment adviser; or

n. Is the subject of an order entered by the insurance administrator of any state

denying or revoking registration as an insurance producer, consultant, or the

substantial equivalent of those terms as defined in section 26.1-26-02.

It is a violation for any person to engage in any conduct described in subdivisions a, c,

d, e, f, and k and any administrative rules promulgated under any of those

subdivisions, if the activities occurred in this state, or with respect to a resident of this

state, or has caused or could have caused harm to investors in this state.

2. It is sufficient cause for revocation of registration of a broker-dealer or investment

adviser as provided in this section, in case of a partnership, corporation, limited liability

company, or any unincorporated association, if any member of a partnership or any

officer or director of the corporation or association or any manager or governor of a

limited liability company has been guilty of any act or omission which would be

sufficient grounds for revoking the registration of an individual broker-dealer or

investment adviser.

3. If the commissioner has reasonable grounds to believe that the registration of any

registered broker-dealer, agent, investment adviser, or investment adviser

representative should be censured, suspended, or revoked upon any grounds

specified in this section, the commissioner or the commissioner's agent may conduct

an examination into the affairs of any such registered broker-dealer, agent, investment

adviser, or investment adviser representative. In making any such examination, the

commissioner or the commissioner's agent shall have access to and may compel the

production of all the books and papers of a registered broker-dealer, agent, investment

adviser, or investment adviser representative, and may administer oaths to and

examine the officers and employees of such broker-dealer or investment adviser as to

the broker-dealer's or investment adviser's business and affairs.

4. If the commissioner makes written findings of fact to support the conclusion that

grounds exist pursuant to subsection 1 for the commissioner to suspend or revoke any

registration, the commissioner may by order summarily suspend registration pending

final determination of any proceeding under this section. Upon the entry of the

summary order, the commissioner shall promptly notify the applicant, as well as the

employer or prospective employer if the applicant is an agent or investment adviser

representative, that it has been entered and the reasons. The person subject to the

order, if desiring a hearing, must make a written request for a hearing to the

commissioner within fifteen days after receipt of the notice. Within fifteen days after

receipt by the commissioner of a written request, the matter will be set for hearing to

determine if the order should be modified, vacated, or extended pending a final

determination. If a hearing is not requested and none is ordered by the commissioner,

the order will remain in effect until modified or vacated by the commissioner.

5. If the commissioner finds, after affording a registered broker-dealer, a registered agent,

a registered investment adviser, or a registered investment adviser representative a

hearing or opportunity for hearing as provided in section 10-04-12, that there are

grounds to censure, suspend, or revoke the registration of such broker-dealer, agent,
t until modified or vacated by the commissioner.

5. If the commissioner finds, after affording a registered broker-dealer, a registered agent,

a registered investment adviser, or a registered investment adviser representative a

hearing or opportunity for hearing as provided in section 10-04-12, that there are

grounds to censure, suspend, or revoke the registration of such broker-dealer, agent,

investment adviser, or investment adviser representative, the commissioner may enter

an order in the register of broker-dealers, agents, investment advisers, and investment

adviser representatives censuring, suspending, or revoking the registration of such

broker-dealer, agent, investment adviser, or investment adviser representative. Such

order shall state specifically the grounds for its issuance. A copy of such order shall be

sent by registered mail to the broker-dealer, agent, investment adviser, or investment

adviser representative whose registration is censured, suspended, or revoked thereby

at the person's business address and, if the censure, suspension, or revocation is of

the registration of an agent or investment adviser representative, to the registered

broker-dealer or registered investment adviser who employs such person. Suspension

or revocation of the registration of a broker-dealer shall also suspend or revoke the

registration of all of the broker-dealer's agents. Suspension or revocation of the

registration of an investment adviser also suspends or revokes the registration of all of

the investment adviser's investment adviser representatives. Suspension or revocation

of the registration of an agent or investment adviser representative solely because of

employment by a broker-dealer or investment adviser whose registration was

suspended or revoked shall not prejudice subsequent applications for registration by

such person.

6. No action may be brought under this section by the commissioner after ten years from

the date of the alleged violation.