Cease and Desist Orders
Chapters in this video
- 0:00 The crypto ostrich farm scenario
- 1:06 Cease and desist definition and the twin zeros
- 1:56 Preventative power: Stan strikes before harm occurs
- 3:13 Why speed matters: the same-day timeline
- 4:28 Cease and desist versus injunction versus criminal penalty
- 5:34 Pop quiz: no judge signature required
- 6:17 Pop quiz: acting before the violation completes
- 7:05 Rapid-fire exam recap
What this video covers
- Why a cease and desist order is the fastest enforcement tool in the administrator's arsenal, and what "zero court, zero hearing" means for exam day
- When the administrator can strike, specifically that a violation does not need to be complete since "is about to engage" is sufficient trigger
- The exact scope of who can be targeted, including registered agents, unregistered persons, or any person violating the Uniform Securities Act
- Why speed is the entire rationale for bypassing judicial oversight, and how the real-world timeline of gather-info-then-issue-same-day works
- The critical distinction between cease and desist (administrative power, Stan) versus injunction (judicial power, judge) versus criminal penalty (court conviction required)
- How to navigate curveball questions where the administrator issues an order without a judge's signature or acts before harm actually occurs
- Why the exam tests cease and desist as the only enforcement remedy requiring neither court approval nor a prior hearing
Read the full lesson, free
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