in-20250709-IR-710250276IFA: FINES AND CIVIL PENALTIES

TITLE 710 SECURITIES DIVISION Interim Final Rule LSA Document #25-276 DIGEST FINES AND CIVIL PENALTIES Temporarily adds rules concerning the factors considered by the Securities Division (division) to determine amounts assessed as fees, fines, and civil penalties. Effective July 1, 2025. Expires December 31, 2025. HISTORY Notice of Public Comment Period for Interim Rule published May 14, 2025: 20250514-IR-710250276INA Regulatory Analysis submitted with Notice of Public Comment Period for Interim Rule: 20250514-IR-710250276RAA Governor's Approval submitted with Notice of Public Comment Period for Interim Rule: 20250514-IR-710250276GAA SUMMARY/RESPONSE TO COMMENTS The division requested public comment on the proposed interim rule from May 14, 2025, through June 13, 2025.   The division received no comments in response to the Notice of Public Comment Period for Interim Rule. INTERIM RULE Sec. 1. (a) Except as provided in subsection (b), the definitions contained in this article apply throughout this title. (b) If a definition in this article conflicts with a definition of specific applicability in another part of this title, or in a statute that controls another part of this title, the definition of specific applicability controls. Sec. 2. "Commissioner" means the securities commissioner appointed under IC 23-19-6-1(a). Sec. 3. (a) Except as provided in subsection (b), "fraud", "fraudulent", "deceit", and "defraud" have the meaning set forth in IC 23-19-1-2(9). (b) Fraud and deceit related to franchises includes: Sec. 4. "Harmed person" means the person harmed, defrauded, misled, or deceived by the violation. Sec. 5. (a) Except as provided in subsection (b), "person" has the meaning set forth in IC 23-19-1-2(20). (b) "Person", as it relates to commodities under IC 23-2-6, has the meaning set forth in IC 23-2-6-14. Sec. 6. "Respondent" means the responding party in legal proceedings that a fine or civil penalty has been imposed against. Sec. 1. (a) The commissioner may impose a civil penalty in an amount not to exceed ten thousand dollars ($10,000) on a respondent for each violation under IC 23-19. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of applying this policy. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. Sec. 1. (a) The commissioner may impose a civil penalty in an amount not to exceed ten thousand dollars ($10,000) on a respondent for each violation under IC 23-2-2.5. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of imposing a civil penalty. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. Sec. 1. (a) The commissioner may impose a civil penalty in an amount not to exceed a maximum of ten thousand dollars ($10,000) on a respondent for each violation under IC 23-2.5. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of imposing a civil penalty. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. Sec. 1. (a) The commissioner may impose a civil penalty of not more than ten thousand dollars ($10,000) on a respondent for any single violation under IC 23-2-6. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of applying this policy. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. Sec. 1. (a) The commissioner may impose a civil penalty in an amount not to exceed ten thousand dollars ($10,000) on a respondent for each violation under IC 25-11. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of applying this policy. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. LSA Document #25-276 Approved by Governor: May 8, 2025 Filed with Publisher: July 1, 2025, 1:23 p.m. Documents Incorporated by Reference: None Received by Publisher