Injunctions

While cease and desist orders are administrative actions the Administrator issues directly, injunctions require the Administrator to go to court. This section covers the judicial remedies available when administrative orders are not enough.

Court Action

The Administrator may bring an action in court to enjoin acts or practices that violate the Act. Unlike cease and desist orders, injunctions are judicial remedies; the Administrator must petition a court to grant them.

The court may grant:

• Permanent or temporary injunctions
• Restraining orders
• Writs of mandamus (orders requiring a government official to perform a duty)

Additional Court-Ordered Remedies

When granting an injunction, the court may also:

• Appoint a receiver or conservator for the defendant or the defendant's assets
• Enter orders of rescission (undoing a transaction)
• Order restitution (making victims whole by returning their money)
• Order disgorgement (forcing the violator to surrender ill-gotten profits)

Exam Tip: Gotchas

• Rescission, restitution, and disgorgement are court-ordered remedies, not administrative orders. The Administrator requests them; the court grants them.
• The Administrator alone cannot order a person to return money to investors; that requires a court order. If the exam asks "who can order restitution," the answer is always the court.

No Bond Requirement

The court may not require the Administrator to post a bond when seeking injunctive relief. This removes a potential financial barrier to the Administrator pursuing enforcement actions.

Exam Tip: Gotchas

• The no bond requirement benefits the Administrator, not the defendant. The Administrator can seek an injunction without putting up any money.