N.Y. General Business Law § 688: Investigations

§ 688. Investigations. 1. Whenever it shall appear to the department

of law, either upon complaint or otherwise, that any person has violated

any provision of this article, the department:

(a) may make such investigations within or outside of this state as it

deems necessary to determine whether any person has violated any

provision of this article or any rule or regulation hereunder, or to aid

in the enforcement of this article or in the prescribing of rules and

forms hereunder, and

(b) may require or permit any person to file a statement in writing,

under oath or otherwise as the attorney general determines, as to all

the facts and circumstances concerning the matter to be investigated.

2. The costs of all out of state travel and lodging expenses relating

to investigations by the department of persons who appear to the

department to have violated any provision of this article shall be borne

by such persons upon a judicial determination that said persons have

committed unlawful and fraudulent acts or practices, as defined in this

article, or so much thereof as is deemed proper by the court.

3. The department is empowered to subpoena witnesses, compel their

attendance, examine them under oath before it or a court of record or a

judge or justice thereof, and require the production of any books or

papers which it deems relevant or material to the inquiry. Such power of

subpoena and examination shall not abate or terminate by reason of any

action or proceeding brought by the department under this article.

4. (a) No person is excused from attending and testifying or from

producing a document or record, in obedience to the subpoena of the

department or in a proceeding instituted by the department, on the

ground that the testimony or evidence, documentary or otherwise,

required of him may tend to incriminate him or subject him to penalty or

forfeiture; but a person may not be prosecuted or subjected to a penalty

of forfeiture for or on account of any transaction, matter, or thing

concerning which he is compelled, after validly claiming his privilege

against self-incrimination, to testify or produce evidence, documentary

or otherwise, except that the person testifying is not exempt from

prosecution and punishment for perjury or contempt committed in

testifying. The department shall compel such testimony or the production

of such evidence only after notifying and consulting with any

appropriate local prosecuting authorities.

(b) No person shall be excused from attending such inquiry pursuant to

the mandate of a subpoena, or from producing a paper or book, or from

being examined or required to answer a question, on the ground of

failure of tender or payment of a witness fee and/or mileage, unless at

the time of such appearance or production, as the case may be, such

witness makes demand for such payment as a condition precedent to the

offering of testimony or production required by the subpoena and unless

such payment is not thereupon made. The provision for payment of witness

fees and/or mileage shall not apply to any officer, director, salesman

or other person in the employ of any person whose conduct or practice is

being investigated.

5. If a person subpoenaed to attend such inquiry fails to obey the

command of a subpoena without reasonable cause, or if a person in

attendance upon such inquiry shall without reasonable cause refuse to be

sworn or to be examined or to answer a question or to produce and permit

reasonable examination of a book or paper when ordered so to do by the

officer conducting such inquiry, or if a person fails to perform any act

required hereunder to be performed, he shall be guilty of a class A

misdemeanor punishable as provided in section six hundred ninety of this

article.

6. It shall be the duty of all public officers, their deputies,

assistants, subordinates, clerks or employees and all other persons to

render and furnish to the department or other designated officer when

requested all information and assistance in their possession or within

their power with respect to all matters being investigated by the

department under this article. Any officer participating in such inquiry

and any person examined as a witness upon such inquiry who shall

disclose to any person other than his attorney or the department the

name of any witness examined or any other information obtained upon such

inquiry except as directed by the department shall be guilty of a class

A misdemeanor punishable as provided in section six hundred ninety of

this article.