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the administrator, institute the appropriate criminal proceedings | | under this chapter.__The Attorney General may request assistance | | from the administrator or employees of the administrator. |
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| | | 3.__No limitation on other criminal enforcement.__This chapter | | does not limit the power of this State to punish a person for | | conduct that constitutes a crime under other laws of this State. |
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| | | 4.__ Venue.__When a person pursuant to one scheme or course of | | conduct, whether upon the same person or several persons, engages | | in fraudulent or other prohibited practices, engages in unlawful | | transactions of business or other unlawful conduct or engages in | | unlawful offers to sell or purchase or unlawful sales or | | purchases under this chapter, the State may opt for a single | | Class C count, and, in that circumstance, prosecution may be | | brought in any venue in which one or more of the unlawful acts | | were committed. |
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| | | Prior Provisions: 1956 Act Section 409; RUSA Section 604; | | Securities Exchange Act of 1934 Section 32(a). |
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| | | 1. This Section follows the 1956 Act and the federal | | securities laws in imposing criminal penalties for any willful | | violation of the Act. RUSA Section 604 distinguished between | | felonies and misdemeanors, limiting willful violations of cease | | and desist orders to a misdemeanor. |
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| | | 2. The term "willfully" has the same meaning in Section 508 | | as it did in the 1956 Act. All that is required is proof that a | | person acted intentionally in the sense that the person was aware | | of what he or she was doing. Proof of evil motive or intent to | | violate the law or knowledge that the law was being violated is | | not required. |
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| | | 3. The final sentence of Section 508(a) is based on Section | | 32(a) of the Securities Exchange Act of 1934, which provides: | | "[N]o person shall be subject to imprisonment under this section | | in violation of any rule or regulation if he proves that he had | | no knowledge of such rule or regulation." The "no knowledge" | | clause in Section 508(a) is relevant only to sentencing. The | | person convicted has the burden of persuasion to prove no | | knowledge at sentencing. Because this does not impose a burden on | | the defendant to disprove the elements of a crime, Section 32(a) | | of the Securities Exchange Act of 1934 has been held not to raise | | a constitutional problem. United States v. Mandel, 296 F. Supp. | | 1038, 1040 (S.D.N.Y. 1969). |
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