Revised Code of Washington
Chapter 19.310 - Exchange Facilitators.
19.310.120 - Prima facie evidence of fraud—Violations—Penalty—Cure for violations.

RCW 19.310.120
Prima facie evidence of fraud—Violations—Penalty—Cure for violations.

(1) Failure to fulfill the requirements under RCW 19.310.040 constitutes prima facie evidence that the exchange facilitator intended to defraud a client who suffered a subsequent loss of the asset entrusted to the exchange facilitator.
(2) A person who engages in business as an exchange facilitator and who knowingly violates RCW 19.310.100 (1) through (9) or fails to comply with the requirements under RCW 19.310.040 is guilty of a class B felony under chapter 9A.20 RCW. However, an exchange facilitator is not guilty of a class B felony for failure to comply with the requirements under RCW 19.310.040 if: (a) Failure to comply is due to the cancellation or amendment of the fidelity bond by the bond issuer; and (b) the exchange facilitator:
(i) Within thirty days, takes all reasonable steps to comply with the requirements under RCW 19.310.040; and
(ii) Deposits any new exchange funds into a qualified escrow account or qualified trust until a fidelity bond is obtained that meets the requirements under RCW 19.310.040(1)(a)(i).

[ 2013 c 228 § 7; 2012 c 34 § 4; 2009 c 70 § 13.]
NOTES:

Findings—2012 c 34: See note following RCW 19.310.040.

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