N.Y. Financial Services Law § 408: Civil penalty

§ 408. Civil penalty. (a) In addition to any civil or criminal

liability provided by law, the superintendent may, after notice and

hearing, levy a civil penalty:

(1) not to exceed five thousand dollars per offense, for:

(A) any intentional fraud or intentional misrepresentation of a

material fact with respect to a financial product or service or

involving any person offering to provide or providing financial products

or services; or

(B) any violation of state or federal fair debt collection practices

or federal or state fair lending laws; and

(2) not to exceed one thousand dollars for any other violation of this

chapter or the regulations issued thereunder, provided that there shall

be no civil penalty under this section for violations of article five of

this chapter or the regulations issued thereunder; and

(3) provided, however, that:

(A) penalties for regulated persons under the banking law shall be as

provided for in the banking law and penalties for regulated persons

under the insurance law shall be as provided for in the insurance law;

and

(B) the superintendent shall not impose or collect any penalty under

this section in addition to any penalty or fine for the same act or

omission that is imposed under the insurance law or banking law; and

(C) nothing in this section shall affect the construction or

interpretation of the term "fraud" as it is used in any other provision

of the consolidated or unconsolidated law.

(b) Civil penalties received by the superintendent pursuant to this

section shall be applied on an annual basis as follows: funds shall be

applied first to reduce the assessments charged on persons regulated

under the insurance law and the banking law pursuant to section two

hundred six of this chapter up to the full amount paid by persons

regulated under the insurance law and banking law for the operating

expenses of the financial frauds and consumer protection unit not

attributable to regulation under the insurance or banking law for the

fiscal year in which such penalties are received, such amount shall be

applied to any assessment in the following year, and any remaining funds

shall be paid to the general fund. The superintendent shall have

discretion to determine how operating expenses which are not solely

attributable to regulating persons under either the insurance law or the

banking law shall be allocated.