Transform Your Legal Communications with eSignature Licitness for Cease and Desist Letter in United Kingdom

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[Music] hi there our Magnum here the ppm attorney today's video wanted to talk about what is a cease and desist order or sometimes it's called a C&D or cease and desist what is it and what's the impact of it a cease and desist order is a an order or a finding of fact that's issued by a securities regulator or typically cease and desist orders I mean yes SEC can issue them as well as states each of the states of the United States can issue a cease and desist or what is it it's basically it's you know it's like a speeding ticket basically saying hey we believe you've violated the securities laws and you know basically it's a it's an injunction to say hey stop violating the securities laws of our state and typically they're issued when maybe there was a inadvertent offering a public offering of securities that were unregistered and as far as enforcement tools or the enforcement actions as far as the the scope of what they could be you know certainly it's not like a criminal it's not a criminal proceeding right which is good right it's not it it's not to that level and it's also doesn't usually involve like a like filing it's not like they're they're suing you in state or federal court usually it's all within the matter of an administrative proceeding and typically it's it's issued at the end of an investigation now sometimes the the company has notice of the investigation and other times they're just issued if they find that let's say there you've got somebody that's cold calling investors and obviously that's a no-no on you know especially you know under if you're just under like a federal likes a rule 506 B it's it's not allowed or any limited you know state offering exemptions it's not allowed and so you know certainly that those that cease and desist basics basically would outline hey we found these certain facts that that you're violating the securities laws and and basically stop doing it you know you're ordered not to not to continue right now obviously you know you do have bad real bad guys out there that do multiple cease and desist orders that may you know that you know let's say they get sicily it's kind of like a slap on the wrist sometimes there's an administrative fine that's associated with it but if they then continue and sort of ignore the order and just keep doing it anyway and they don't curb their activity to comply with the securities laws and obviously you know the regulator could ratchet up especially in the States you know they they have you know unlike you know unlike the SEC I mean the SEC is a purely civil regulator they can't bring criminal actions whereas the states they most the time they're also deputized under the state attorney general's office and you know if they feel like you're a perpetual violator you know you know in practice we kind of see that play out as like a one strike two strikes okay maybe we'll increase the fines and then maybe a three strikes you know they'll they'll bring criminal charges right and those you know ratcheted up they basically if you're if you're violating these cease and desist orders you know hey we're gonna try to put you away you know basically right so there they are they are to be taken seriously you ever receive a cease and desist order or you're you know you're get notice that there you know of an investigation you definitely want to involve a securities attorney and make sure that you're you're you know you can at least mitigate the damages right ideally you wouldn't even be there in the first place but you know if you find yourself behind the 8-ball you definitely want to engage the securities attorney to help you are you able to continue to raise a question I get a lot is hey we've got the cease and desist order or several years ago or maybe I had some legal proceedings I had a bankruptcy I had a you know some sort of and securities infraction and years ago can I still raise capital the answer that is yes but obviously your your your options are a little bit more limited and scope you maybe depending on when it happened if it happened you know after November or after September 23rd of 20 2013 then certainly you may be excluded as a bad boy or bad actor under under like Regulation D that may no longer be available to you and so then you're forced to find other exemptions like for section 4 a 2 at the federal level and potentially you know other state other state exemptions that are limited limited offering exemptions in those states and so it's so the answer question is yes you can probably unless you're actually the cease and desist order you know you know you unless it impose some sort of bar from raising capital which is pretty rare but it does happen but you know unless that is the case you know you can usually continue to raise capital under other exemptions that don't prohibit you a bad actor and not that you're a bad person I'm just saying you know that that's a legal term bad actor you know it's like a you know you can't you know these these exemptions are no longer available to you but but especially and the fact that if it's disclosed in the PPM as hey we had this infraction but obviously we settled that blah blah I mean that it has to be disclosed in a private placement memorandum so but yeah so the answer is yes you can continue to raise capital if you had this kind of issue in the past but again definitely consult with the Securities attorney if you have questions about it feel free to reach out to me glad to help you address it so anyway hopefully this content is hopeful for you and if so please like it or subscribe or leave some comments or you know feel free to reach out to me call us be glad to help anyway thanks for watching and we'll see you in the next video