N.D. Cent. Code § 10-04-16.1

10-04-16.1. Investigations and subpoenas

1. The department may:

a. Make such public or private investigations within or outside of this state as

deemed necessary to determine whether any person has violated, is violating, or

is about to violate any provision of this chapter or any rule or order hereunder, or

to aid in the enforcement of this chapter or in the prescribing of rules and forms

hereunder.

(1) For the purposes of this section, an investigation may include an

examination of the books and records of any person registered under the

provisions of this chapter. In the discretion of the commissioner, the expense

reasonably attributed to an investigation under this section must be paid by

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

representative whose affairs are investigated.

(2) A person is not liable to a broker-dealer, agent, investment adviser, federal

covered adviser, or investment adviser representative for defamation

relating to a statement that is contained in a record required or requested by

the department under this subsection or required to be maintained under

section 10-04-10.3, unless the person knew, or should have known at the

time the statement was made, that it was false in a material respect or the

person acted in reckless disregard of the statement's truth or falsity.

(3) Professional services contracted and rendered under this section are

exempt from chapter 54-44.4.

b. Require or permit any person to file a statement in writing, under oath or

otherwise, as to all the facts and circumstances concerning the matter to be

investigated.

c. Publish information concerning any violation of this chapter or any rule or order

hereunder and may keep confidential the information or documents obtained or

prepared in the course of any investigation conducted under this section but only

during an active and ongoing investigation. If an investigation under this section

extends beyond six months, the commissioner shall, upon a request by any party,

state in writing that the need for confidentiality still exists, the general reason why

the need exists, and the date, as can best be determined at the time, when the

need for confidentiality will cease.

2. For the purpose of any investigation or proceeding under this chapter, the

commissioner or any officer designated by the commissioner 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 deems relevant

or material to the inquiry.

3. The commissioner may issue subpoenas in this state at the request of a securities

agency or administrator of another state if the activities constituting an alleged

violation for which information is sought would be a violation of this chapter if the

activities had occurred in this state.

4. In case of contumacy by, or refusal to obey a subpoena issued to, any person, the

district court, upon application by the commissioner, may issue to the person an order

requiring the person to appear before the commissioner, or the officer designated by

the commissioner, there to produce documentary evidence if so ordered or to give

evidence touching the matter under investigation or in question. Failure to obey the

order of the court may be punished by the court as a contempt of court.

5. No person is excused from attending and testifying or from producing any document or

record before the commissioner, or in obedience to the subpoena of the commissioner

or any officer designated by the commissioner, or in any proceeding instituted by the

commissioner, on the ground that the testimony or evidence, documentary or

otherwise, required of the person may tend to incriminate the person or subject the

person to a penalty or forfeiture. No testimony or evidence, documentary or otherwise,
ommissioner, or in obedience to the subpoena of the commissioner

or any officer designated by the commissioner, or in any proceeding instituted by the

commissioner, on the ground that the testimony or evidence, documentary or

otherwise, required of the person may tend to incriminate the person or subject the

person to a penalty or forfeiture. No testimony or evidence, documentary or otherwise,

compelled from an individual after a valid claim of the privilege against

self-incrimination has been made may be used against the individual in any criminal

proceeding, or in any proceeding to subject the individual to a penalty or forfeiture,

except that the individual testifying is not exempt from prosecution and punishment for

perjury or contempt committed in testifying.