Securities Division Enforcement Cases
What is the difference between an enforcement action and an enforcement order?
An enforcement action describes the process taken by the Securities Division when it believes it has evidence that a respondent (the person or company facing the charges) has violated Arizona's securities or investment management laws.
The Securities Division normally initiates an action by filing and serving a Notice of Opportunity for Hearing, which is similar to a complaint in a civil lawsuit. Respondents then have a limited time in which to request a hearing where they can present their respective cases to an Administrative Law Judge. As part of its administrative action, the Commission may also issue a Temporary Order if the alleged activity is ongoing (see explanation of term below).
When an action is pending, the Commission's Administrative Law Judge has not yet heard any evidence about the Securities Division' claims. If someone with whom you have invested or someone who is offering you an investment is the subject of an action, keep in mind that the Securities Division still has to prove the allegations spelled out in the notice. Hearings on alleged violations are public and you can attend, if you wish. To inquire about the Commission's hearing calendar, call 602-542-2237.