Authority: IC 23-19-2; IC 23-19-6-5

Affected: IC 23-19-2-2; IC 23-19-2-4

Sec. 2. (a) In consideration for issuing an order under IC 23-19-2-4 denying, suspending application of, conditioning, limiting, or revoking an exemption provided by IC 23-19-2-2(14), the commissioner may review:

1. (1) whether the issuer, or any of its directors, officers, general partners, or beneficial owners of ten percent (10%) or more of any class of equity securities has been convicted in any jurisdiction within five (5) years prior to the commencement of the offering of any felony or misdemeanor:

   1. (A) in connection with the purchase or sale of any security or commodity; or
   2. (B) involving the making of any false filing relating to any security or offering;

2. (2) whether any person described in subdivision (1) is subject to any order, judgment, or decree of any court or regulatory authority of competent jurisdiction temporarily or preliminarily restraining or enjoining, or is subject to any order, judgment, or decree of any court or regulatory authority of competent jurisdiction, entered within five (5) years prior to the commencement of the offering, permanently restraining or enjoining the person from engaging in or continuing any conduct or practice (including making use of any exemption):

   1. (A) in connection with the purchase or sale of any security or commodity; or
   2. (B) involving the making of any false filing relating to any security or offering; or
3. (3) any other factor the commissioner considers appropriate.

(b) Subsection (a) shall not apply to an offering of securities if the commissioner determines, upon a showing of good cause, that it is not necessary under the circumstances that the exemption under IC 23-19-2-2(14) be denied. Any determination by the commissioner shall be without prejudice to any other action by the commissioner in any other proceeding or matter with respect to the issuer or any other person.

(Securities Division; 710 IAC 4-2-2; filed Jun 28, 2010, 2:36 p.m.: 20100728-IR-710100044FRA; readopted filed May 12, 2016, 1:47 p.m.: 20160608-IR-710160136RFA; readopted filed Nov 30, 2022, 4:01 p.m.: 20221228-IR- 710220301RFA)