§4632 Temporary Cease-and-desist Orders

Summary

The Director can quickly order a regulated company or a related person to stop certain actions and to take steps to prevent or fix harm if the Director finds the charged conduct is likely to cause insolvency, big losses of assets or earnings, or to weaken the company before the case finishes. The temporary order can include other steps the law allows. It becomes effective when served and stays in effect until the Director drops the charges or a later cease-and-desist under section 4631 replaces it, unless a court limits or suspends it. If the Director finds a company’s books are so incomplete or wrong that the company’s financial condition or important transactions cannot be understood, the Director can order the company to stop the activity that caused the problem and to fix the records. Those orders take effect on service and last until the related case ends or the Director finds the records accurate. Anyone served may ask the U.S. District Court for the District of Columbia within 10 days for an injunction to set aside, limit, or suspend the order. The Director can also go to that court to enforce the order, and the court must issue an injunction if it finds a violation.