CODE OF VIRGINIA

VIOLATIONS PUNISHABLE BY THE COMMISSION (§ 13.1-521)

A. The Commission may, by judgment entered after a hearing on 30 days’
notice to the defendant, if it is proved that the defendant has knowingly made
any misrepresentation of a material fact for the purpose of inducing the
Commission to take any action or to refrain from taking action, or has violated
any provision of this chapter or any order, rule, or regulation of the
Commission issued pursuant to this chapter, impose a civil penalty not exceeding
$ 10,000, which shall be collectible by the process of the Commission as
provided by law.

B. In addition to imposing the penalty set forth in subsection A, or without
imposing such penalty, the Commission may, in any such case, revoke any
authority or registration issued by the Commission to or at the instance of the
defendant.

C. Each sale of a security contrary to the provisions of this chapter shall
constitute a separate violation. The Commission may in any such case under
subsection A order the seller to rescind any such sale and to make restitution
to the purchaser and the Commission shall consider such rescission and
restitution in determining whether a penalty should be imposed on him on account
of that illegal sale, and if so, the amount of such penalty.

D. Each investment advisory contract, transaction or activity contrary to the
provisions of this chapter shall constitute a separate violation. The Commission
may in any such case under subsection A order the investment advisor or
investment advisor representative to rescind any such contract or transaction
and to make restitution to the user of the investment advisory service and the
Commission shall consider such rescission and restitution in determining whether
a penalty should be imposed on him on account of that illegal contract,
transaction or activity and, if so, the amount of such penalty.

E. The provisions of subsections C and D of this section regarding rescission
and restitution apply only to this chapter.

HISTORY: Code 1950, § 13-153; 1956, c. 428; 1987, c. 678; 1990, c. 31; 2000, c.
166; 2009, c. 566.