§4632 Temporary Cease-and-desist Orders

Summary

The Director can order a supervised company or people connected to it to stop certain actions right away if those actions are likely to make the company insolvent (not enough money to pay bills), drain its assets or earnings, or otherwise weaken it before a full hearing finishes. The Director can also require steps to prevent or fix those problems while the case continues. The order can include the same kinds of requirements the Director can use under the related rules. The order starts when it is served and stays in effect until the Director drops the charges or a full cease-and-desist order replaces it, unless a court limits or suspends it. If the Director finds a company’s books or records are so incomplete or wrong that the company’s finances can’t be understood, the Director can order the company to stop the activity causing the problem or to fix the records. That order also takes effect on service and lasts until the related proceeding ends or the Director finds the records are accurate, unless a court acts. A company, its officers, directors, or affiliated people can ask the United States District Court for the District of Columbia within 10 days of service to set aside, limit, or suspend the temporary order while the administrative case continues. If someone breaks or threatens to break the temporary order, the Director can ask the same court for an injunction to enforce it, and the court must issue one if it finds a violation or threat.