Section 353. Action by attorney-general  


Latest version.
  • 1. Whenever the attorney-general
      shall believe  from  evidence  satisfactory  to  him  that  any  person,
      partnership,  corporation, company, trust or association has engaged in,
      is engaged or is about to engage in any of the practices or transactions
      heretofore referred to as and declared to be  fraudulent  practices,  he
      may bring an action in the name and on behalf of the people of the state
      of  New  York  against  such  person, partnership, corporation, company,
      trust or association,  and  any  other  person  or  persons  theretofore
      concerned  in  or in any way participating in or about to participate in
      such  fraudulent  practices,  to  enjoin   such   person,   partnership,
      corporation,  company,  trust  or  association  and such other person or
      persons from continuing such fraudulent practices or engaging therein or
      doing any act or acts in furtherance thereof or, if the attorney-general
      should  believe  from  such  evidence  that  such  person,  partnership,
      corporation, company, trust or association actually has or is engaged in
      any  such  fraudulent  practice,  he  may  include  in  such  action  an
      application to enjoin permanently such person, partnership, corporation,
      company, trust or association, and such other person or persons  as  may
      have  been  or may be concerned with or in any way participating in such
      fraudulent practice, from selling or offering for  sale  to  the  public
      within  this  state,  as  principal,  broker or agent, or otherwise, any
      securities issued or to be issued. In said action an order or a judgment
      may be entered awarding the relief applied for or so much thereof as the
      court may deem proper. Upon a showing by  the  attorney-general  in  his
      application  for  a  permanent  injunction  hereunder that the defendant
      named in the action or an officer thereof has refused to be sworn or  to
      be  examined  or  to  answer a material question or to produce a book or
      paper relevant to the inquiry when duly ordered so to do by the  officer
      or  judge duly conducting an inquiry into the subject matter forming the
      basis of the application for such  injunction,  such  refusal  shall  be
      prima  facie  proof  that  such  defendant  is  or  has  been engaged in
      fraudulent practices as set forth in such application  and  a  permanent
      injunction  may issue from the supreme court without any further showing
      by the attorney-general. In such an action, the court may award  to  the
      plaintiff  a  sum not in excess of two thousand dollars as an additional
      allowance.
        2. Upon a showing by the attorney-general in  an  application  for  an
      injunction  that  any  person  engaged  in  the purchase, sale, offer to
      purchase  or   sell,   issuance,   exchange,   promotion,   negotiation,
      advertisement  or  distribution  within  this  state  of any security or
      securities, either as principal, partner, officer,  agent,  employee  or
      otherwise,  has ever been convicted by a court of competent jurisdiction
      in any state or country of any felony; or of any other criminal  offense
      by  any  such  court,  whether  or  not constituting a felony, involving
      securities, the supreme court after a  hearing  may  issue  a  permanent
      injunction  awarding  the  relief applied for, or so much thereof as the
      court may deem proper,  against  such  person  shown  to  have  been  so
      convicted,  in  the  form  and manner provided for in subdivision one of
      this section in case of one who  actually  has  or  is  engaged  in  any
      fraudulent practice.
        3.  Upon  a showing by the attorney general that a fraudulent practice
      as defined by this article has occurred, he may  include  in  an  action
      under this article an application to direct restitution of any moneys or
      property   obtained  directly  or  indirectly  by  any  such  fraudulent
      practice.