59-1725.01. Seller-assisted marketing plan; cease and desist order; fine; injunction; procedures; appeal.
(1) The Director of Banking and Finance may summarily order a seller or any officer, director, employee, or agent of such seller to cease and desist from the further offer or sale of any seller-assisted marketing plan by the seller if the director finds:
(a) There has been a substantial failure to comply with any of the provisions of the Seller-Assisted Marketing Plan Act;
(b) The offer or sale of the plan would constitute misrepresentation to or deceit or fraud upon the purchasers; or
(c) Any person identified in the required disclosure document has been convicted of an offense described in subdivision (2)(a) of section 59-1735 or is subject to an order or has had a civil judgment entered against him or her as described in subdivision (2)(b) or (c) of section 59-1735, and the involvement of such person in the sale or management of the seller-assisted marketing plan creates an unreasonable risk to prospective purchasers.
(2) If the director believes, whether or not based upon an investigation conducted under section 59-1725, that any person has engaged in or is about to engage in any act or practice constituting a violation of any provision of the Seller-Assisted Marketing Plan Act or any rule, regulation, or order of the director, the director may:
(a) Issue a cease and desist order;
(b) Impose a fine not to exceed five thousand dollars per violation, in addition to costs of the investigation; or
(c) Initiate an action in any court of competent jurisdiction to enjoin such acts or practices and to enforce compliance with the Seller-Assisted Marketing Plan Act or any order under the act.
(3) Upon a proper showing, a permanent or temporary injunction, restraining order, or writ of mandamus shall be granted. The director shall not be required to post a bond.
(4)(a) Any fines and costs imposed under this section shall be in addition to all other penalties imposed by the laws of this state. The Department of Banking and Finance shall collect the fines and costs and remit them to the State Treasurer. The State Treasurer shall credit the costs to the Securities Act Cash Fund and distribute the fines in accordance with Article VII, section 5, of the Constitution of Nebraska.
(b) If a person fails to pay the administrative fine or investigation costs referred to in this section, a lien in the amount of such fine and costs may be imposed upon all assets and property of such person in this state and may be recovered by suit by the director. Failure of the person to pay such fine and costs shall constitute a separate violation of the act.
(5) Upon entry of an order pursuant to this section, the director shall, in writing, promptly notify all persons to whom such order is directed that it has been entered and of the reasons for such order and that any person to whom the order is directed may request a hearing in writing within fifteen business days after the issuance of the order. Upon receipt of such written request, the matter shall be set down for hearing to commence within thirty business days after the receipt unless the parties consent to a later date or the hearing officer sets a later date for good cause. If a hearing is not requested within fifteen business days and none is ordered by the director, the order shall automatically become final and shall remain in effect until it is modified or vacated by the director. If a hearing is requested or ordered, the director, after notice and hearing, shall enter his or her written findings of fact and conclusions of law and may affirm, modify, or vacate the order.
(6) The director may vacate or modify a cease and desist order if he or she finds that the conditions which caused its entry have changed or that it is otherwise in the public interest to do so.
(7) Any person aggrieved by a final order of the director may appeal the order. The appeal shall be in accordance with the Administrative Procedure Act.
Source
Cross References
Structure Nebraska Revised Statutes
Chapter 59 - Monopolies and Unlawful Restraint of Trade
59-501 - Sales; discrimination; when unlawful.
59-502 - Sales; unlawful discrimination; prima facie evidence.
59-503 - Purchases; discrimination; when unlawful.
59-504 - Purchases; unlawful discrimination; prima facie evidence.
59-505 - Unlawful discrimination; penalty.
59-506 - Unlawful discrimination; contracts void.
59-507 - Attorney General, county attorneys; duty to enforce sections.
59-801 - Restraint of trade or commerce; unlawful; penalty.
59-802 - Monopolizing trade or commerce; unlawful; penalty.
59-803 - Violation; property under contract forfeited.
59-805 - Restraint of trade; underselling; penalty.
59-806 - Holding companies; when unlawful.
59-807 - Books of record and papers; inspection by Attorney General.
59-810 - Second or subsequent violations; ouster; injunction.
59-811 - Second or subsequent violations; duty of Attorney General.
59-812 - Violators; actions against; joinder of parties.
59-813 - Violators; ouster; injunctions; business affected with a public interest; decree.
59-814 - Violators; parties to employment contract; injunction.
59-816 - Violation; company officers; personal liability.
59-818 - Seeking or receiving special advantages; transport of article; when unlawful; penalty.
59-819 - Violations; jurisdiction; powers of courts.
59-820 - Violations; civil proceedings; subpoena; may issue to any county.
59-821 - Violations; recovery of actual or liquidated damages; attorney's fees.
59-821.01 - Illegal overcharge or undercharge case.
59-823 - Violations; actions brought by state; advancement of cause; appeal.
59-824 - Violations; proceedings; evidence; discovery; privilege not allowed.
59-825 - Violations; proceedings; refusal to attend and testify; penalty.
59-826 - Violations; proceedings; perjury; penalty.
59-827 - Violations; proceedings; subornation of perjury.
59-829 - Antitrust action; construction; federal law.
59-831 - Violations; recovery; disposition.
59-1403 - License; tax; Department of Revenue; rules and regulations.
59-1403.01 - Music licensing agency; registration; fine; list of members.
59-1403.02 - Music licensing agency; duties; contract requirements.
59-1403.03 - Music licensing agency; disclosures; representative or agent; prohibited acts.
59-1403.04 - Department of Revenue; duties.
59-1403.05 - Act, how construed.
59-1404 - Copyright owner; assigns; licensees; benefits.
59-1405 - Discrimination in price; price changes; exceptions.
59-1406 - Violations; penalty.
59-1503 - Sale of cigarettes; unlawful acts; enumerated.
59-1504 - Sale of cigarettes; cost to retailer; filing with division.
59-1505 - Sale of cigarettes; cost to wholesaler; filing with division.
59-1506 - Sale of cigarettes; advertising, offers for sale, sales; combination sales.
59-1507 - Sale of cigarettes; sale by wholesaler to another wholesaler; sale price; limitation.
59-1508 - Sale of cigarettes; transactions excepted.
59-1509 - Sale of cigarettes; transactions permitted to meet lawful competition.
59-1510 - Sale of cigarettes; contracts void.
59-1511 - Sale of cigarettes; admissible evidence.
59-1512 - Sale of cigarettes; sales outside ordinary channels.
59-1513 - Sale of cigarettes; cost survey.
59-1514 - Cigarette tax division; rules and regulations.
59-1515 - Sale of cigarettes; actions; remedies.
59-1516 - Revocation of license; procedure; appeal.
59-1517 - Cigarette tax division; enforcement of sections.
59-1518 - Cigarette tax division; powers vested by other laws.
59-1523 - Disciplinary actions; contraband.
59-1524 - Deceptive trade practice.
59-1602 - Unfair competition; practices; unlawful.
59-1603 - Contracts, combinations, conspiracies in restraint of trade; unlawful.
59-1604 - Monopolies and attempted monopolies; unlawful.
59-1607 - Labor not an article of commerce.
59-1608 - Attorney General; restrain prohibited acts; costs; restoration of property.
59-1608.01 - Enforcement of act; venue.
59-1608.03 - Recovery under act; Attorney General; duties.
59-1608.04 - State Settlement Cash Fund; created; use; investment; transfer.
59-1608.05 - State Settlement Trust Fund; created; use; investment.
59-1609 - Civil action for damages.
59-1609.01 - Illegal overcharge or undercharge; damages; proof; court; powers.
59-1612 - Limitation of action.
59-1613 - Final judgment or decree; prima facie evidence in civil action; exception.
59-1614 - Civil penalties; Attorney General; duties.
59-1615 - Dissolution, suspension, or forfeiture of corporate franchise.
59-1616 - Personal service of process outside state.
59-1617 - Exempted transactions; applicability of provisions.
59-1618 - Agricultural products; producers; associations; form; requirements.
59-1620 - Contracts and agreements in restraint of trade; void; voidable.
59-1621 - Conspiracy in restraint of trade; findings; prima facie evidence.
59-1622 - Officers; liable for debts and obligations; when.
59-1701 - Legislative intent and findings; seller-assisted marketing plans.
59-1702 - Definitions; where found.
59-1703 - Seller-assisted marketing plan, defined.
59-1711 - Seller-assisted marketing plan contract or contract, defined.
59-1712 - Initial payment, defined.
59-1713 - Buy-back or secured investment, defined.
59-1714 - Ongoing business, defined.
59-1714.01 - License, defined.
59-1715 - Seller-assisted marketing plan; securities excluded.
59-1716 - Seller-assisted marketing plan; real estate or insurance transactions; excluded.
59-1717 - Seller-assisted marketing plan; sales under certain license; excluded.
59-1718 - Seller-assisted marketing plan; sale or lease to ongoing business enterprises; excluded.
59-1719 - Seller-assisted marketing plan; sale of an ongoing business; excluded.
59-1720 - Seller-assisted marketing plan; certain sale, lease, or offer; excluded.
59-1721 - Seller-assisted marketing plan; renewal or extension of existing plan; excluded.
59-1722 - Transaction involving the sale of a franchise; exempt; exception; conditions; fee.
59-1723 - Seller-assisted marketing plan; sale, lease, or offer; occurs; when.
59-1725 - Marketing plan; violations; investigations; director; powers.
59-1726 - Marketing plan; seller; use of certain phrases; prohibited.
59-1727 - Marketing plan; buy-back or security investment provision; invoked; entitlement.
59-1729 - Marketing plan; earning potential claim; substantiated by data.
59-1730 - Marketing plan; advertising; commercial symbol; requirements.
59-1731 - Marketing plan; advertisement; name and address of seller; required.
59-1732 - Seller-assisted marketing plan; potential purchaser; seller provide disclosure document.
59-1733 - Disclosure document; information; requirements.
59-1735 - Disclosure document; contents; requirements.
59-1736 - Seller; officers, directors, partners, managers; conviction or judgment; disclosure.
59-1737 - Disclosure document; disclose period of time plan sold or offered.
59-1738 - Disclosure document; disclose existence of bond or trust account.
59-1739 - Disclosure document; contain financial information; verification.
59-1740 - Disclosure document; contain unexecuted copy of marketing plan contract.
59-1741 - Seller-assisted marketing plan; contract for sale or lease; written; copy to purchaser.
59-1742 - Marketing plan contract; contents; requirements.
59-1743 - Marketing plan contract; purchaser; right to cancel; when.
59-1744 - Marketing plan contract; contain notice of right to cancel.
59-1745 - Marketing plan contract; execution of certain notes prohibited.
59-1746 - Marketing plan contract; downpayment; conditions.
59-1747 - Marketing plan contract; assignee; rights, defenses.
59-1748 - Reference to compliance with act; prohibited.
59-1749 - Marketing plan; seller; records required.
59-1750 - Seller-assisted marketing plan; service of process.
59-1751 - Seller; surety bond or trust account; establish; procedures.
59-1752 - Seller; noncompliance with act; contract; voidable; purchaser; remedies.
59-1753 - Seller; inadvertent defects; cure; purchaser; rights.
59-1754 - Seller; failure to deliver products; contract voidable.
59-1755 - Purchaser rights; cumulative.
59-1756 - Purchaser; waiver of rights; unenforceable.
59-1757 - Prohibited acts; violation; penalty; enforcement.
59-1758 - Violation; action for recovery of damages; award; statute of limitations.
59-1759 - Remedies; not exclusive.
59-1760 - Statutory or common-law rights; available.
59-1761 - Unfair competition and deceptive practices statutes; applicable.
59-1762 - Director of Banking and Finance; powers; rules and regulations.