Violations of the Wisconsin Uniform Securities Law and providing a penalty

The division may also issue an order relating to securities law violations and, upon request, must conduct an administrative hearing on the order in which findings of fact and conclusions of law are recorded. In a civil enforcement proceeding, the court in a circuit court proceeding or the division in an administrative proceeding may impose a civil penalty of not more than $5,000 for a single violation or not more than $250,000 for more than one violation.

This bill creates a penalty enhancer for violations of the state's securities laws.

If a person is convicted of a crime for violating the state's securities laws and the crime is committed against another person who is at least 65 years of age, for each such offense the maximum fine may be increased by not more than $5,000 and the maximum term of imprisonment may be increased by not more than five years. In a civil enforcement proceeding, the court in a circuit court proceeding or the division in an administrative proceeding may impose a civil penalty of not more than $10,000 for a single violation, or not more than $500,000 for more than one violation, if the violation is against another person who is at least 65 years of age when the violation occurs. The fact that the defendant did not know the age of the victim, or reasonably believed the victim was not at least 65 years of age, is not a defense to this penalty enhancement.

Under current law, in a civil enforcement proceeding before the circuit court, the court may order a person who violates the state's securities laws to pay restitution, to disgorge profits, and to pay prejudgment and postjudgment interest, in addition to imposing a civil penalty. This bill allows the division, in an administrative civil enforcement proceeding, to also include in its orders the payment of restitution, the disgorgement of profits, and the payment of interest at the legal rate.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report concerning the proposed penalty and the costs or savings that are likely to result if the bill is enacted.