New York Laws
Article 23-A - Fraudulent Practices in Respect to Stocks, Bonds and Other Securities
353 - Action by Attorney-General.

§ 353. Action by attorney-general. 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.

4. Notwithstanding any law to the contrary, all monies recovered or
obtained under this article by a state agency or state official or

employee acting in their official capacity shall be subject to
subdivision eleven of section four of the state finance law.