N.Y. General Business Law § 353: Action by attorney-general

§ 353. Action by attorney-general. 1. Whenever the attorney-general

shall believe from evidence satisfactory to him that any person,

partnership, corporation, company, trust or association has engaged in,

is engaged or is about to engage in any of the practices or transactions

heretofore referred to as and declared to be fraudulent practices, he

may bring an action in the name and on behalf of the people of the state

of New York against such person, partnership, corporation, company,

trust or association, and any other person or persons theretofore

concerned in or in any way participating in or about to participate in

such fraudulent practices, to enjoin such person, partnership,

corporation, company, trust or association and such other person or

persons from continuing such fraudulent practices or engaging therein or

doing any act or acts in furtherance thereof or, if the attorney-general

should believe from such evidence that such person, partnership,

corporation, company, trust or association actually has or is engaged in

any such fraudulent practice, he may include in such action an

application to enjoin permanently such person, partnership, corporation,

company, trust or association, and such other person or persons as may

have been or may be concerned with or in any way participating in such

fraudulent practice, from selling or offering for sale to the public

within this state, as principal, broker or agent, or otherwise, any

securities issued or to be issued. In said action an order or a judgment

may be entered awarding the relief applied for or so much thereof as the

court may deem proper. Upon a showing by the attorney-general in his

application for a permanent injunction hereunder that the defendant

named in the action or an officer thereof has refused to be sworn or to

be examined or to answer a material question or to produce a book or

paper relevant to the inquiry when duly ordered so to do by the officer

or judge duly conducting an inquiry into the subject matter forming the

basis of the application for such injunction, such refusal shall be

prima facie proof that such defendant is or has been engaged in

fraudulent practices as set forth in such application and a permanent

injunction may issue from the supreme court without any further showing

by the attorney-general. In such an action, the court may award to the

plaintiff a sum not in excess of two thousand dollars as an additional

allowance.

2. Upon a showing by the attorney-general in an application for an

injunction that any person engaged in the purchase, sale, offer to

purchase or sell, issuance, exchange, promotion, negotiation,

advertisement or distribution within this state of any security or

securities, either as principal, partner, officer, agent, employee or

otherwise, has ever been convicted by a court of competent jurisdiction

in any state or country of any felony; or of any other criminal offense

by any such court, whether or not constituting a felony, involving

securities, the supreme court after a hearing may issue a permanent

injunction awarding the relief applied for, or so much thereof as the

court may deem proper, against such person shown to have been so

convicted, in the form and manner provided for in subdivision one of

this section in case of one who actually has or is engaged in any

fraudulent practice.

3. Upon a showing by the attorney general that a fraudulent practice

as defined by this article has occurred, he may include in an action

under this article an application to direct restitution of any moneys or

property obtained directly or indirectly by any such fraudulent

practice.

4. Notwithstanding any law to the contrary, all monies recovered or

obtained under this article by a state agency or state official or

employee acting in their official capacity shall be subject to

subdivision eleven of section four of the state finance law.