Title 11. Maryland Securities Act — Subtitle 7. Enforcement and Penalties
Statutes in effect as of October 1, 2026.
Md. Code Ann., Corps. & Ass'ns § 11-701 (2026)
Title 11. Maryland Securities Act
Subtitle 7. Enforcement and Penalties
§ 11–701LinkCopy Citation
(a)
In his discretion, the Commissioner may:
(1)
Make public or private investigations within or outside of this State as he considers necessary to:
(i)
Determine whether any person has violated or is about to violate any provision of this title or any rule or order under this title; or
(ii)
Aid in the enforcement of this title or in the prescribing of rules and forms under this title;
(2)
Require or permit any person to file a statement in writing, under oath or otherwise as the Commissioner determines, as to all the facts and circumstances concerning the matter to be investigated; and
(3)
Publish information concerning any violation of this title or any rule or order under this title.
(b)
For the purpose of any investigation or proceeding under this title, the Commissioner or any officer designated by him may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the Commissioner considers relevant or material to the inquiry.
(c)
(1)
In case of contumacy by or refusal to obey a subpoena issued to any person, the circuit court of the county in which the person resides or transacts business, on application by the Commissioner, may issue to the person an order requiring him to appear before the Commissioner or the officer designated by him to produce documentary evidence if so ordered or to give evidence touching the matter under investigation or in question.
(2)
Failure to obey the order of the court may be punished by the court as a contempt of court.
(d)
A person is not excused from attending and testifying or from producing any document or record before the Commissioner, or in obedience to the subpoena of the Commissioner or any officer designated by him, or in any proceeding instituted by the Commissioner, on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to a penalty or forfeiture. However, an individual may not be prosecuted or subjected to any penalty or forfeiture for or on account of any specific subject concerning which he is compelled, after claiming his privilege against self-incrimination as to that specific subject, to testify or produce evidence, documentary or otherwise, except that the individual testifying is not exempt from prosecution and punishment for perjury or contempt committed in testifying.
Md. Code Ann., Corps. & Ass'ns § 11-701.1 (2026)
Title 11. Maryland Securities Act
Subtitle 7. Enforcement and Penalties
§ 11–701.1LinkCopy Citation
(a)
Whenever the Commissioner determines that a person has engaged or is about to engage in any act or practice constituting a violation of any provision of this title or any rule or order under this title or that a person has knowingly or recklessly provided substantial assistance, is knowingly or recklessly providing substantial assistance, or is about to knowingly or recklessly provide substantial assistance to another person in connection with an act, a practice, or a course of business constituting a violation of this title or a rule adopted or an order issued under this title, and that immediate action against such person is in the public interest, the Commissioner may in his discretion issue, without a prior hearing, a summary order directing such person to cease and desist from engaging in such activity, provided that the summary cease and desist order gives the person:
(1)
Notice of the opportunity for a hearing before the Commissioner to determine whether the summary cease and desist order should be vacated, modified, or entered as final; and
(2)
Notice that the summary cease and desist order will be entered as final if such person does not request a hearing within 15 days of receipt of the summary cease and desist order.
(b)
Whenever the Commissioner determines after notice and a hearing (unless the right to notice and a hearing is waived) that a person has engaged in any act or practice constituting a violation of any provision of this title or any rule or order under this title or that a person has knowingly or recklessly provided substantial assistance to another person in connection with an act, a practice, or a course of business constituting a violation of this title or a rule adopted or an order issued under this title, the Commissioner may in his discretion and in addition to taking any other action authorized under this title:
(1)
Issue a final cease and desist order against such person;
(2)
Censure such person if such person is registered under this title;
(3)
Bar such person from engaging in the securities business or investment advisory business in this State;
(4)
Issue a penalty order against such person imposing a civil penalty up to the maximum amount of $5,000 for any single violation of this title; or
(5)
Take any combination of the actions specified in this subsection.
Md. Code Ann., Corps. & Ass'ns § 11-702 (2026)
Title 11. Maryland Securities Act
Subtitle 7. Enforcement and Penalties
§ 11–702LinkCopy Citation
(a)
Whenever it appears to the Commissioner that any person is about to engage in any act or practice constituting a violation of any provision of this title or any rule or order under this title or that the person is about to knowingly or recklessly provide substantial assistance to another person in connection with an act, a practice, or a course of business constituting a violation of this title or a rule adopted or an order issued under this title, he may in his discretion bring an action to obtain 1 or more of the following remedies:
(1)
A temporary restraining order; or
(2)
A temporary or permanent injunction.
(b)
Whenever it appears to the Commissioner that any person has engaged in any act or practice constituting a violation of any provision of this title or any rule or order under this title or that a person has knowingly or recklessly provided substantial assistance, is knowingly or recklessly providing substantial assistance, or is about to knowingly or recklessly provide substantial assistance to another person in connection with an act, a practice, or a course of business constituting a violation of this title or a rule adopted or an order issued under this title, the Commissioner may in the Commissioner’s discretion bring an action to obtain one or more of the following remedies:
(1)
A temporary restraining order;
(2)
A temporary or permanent injunction;
(3)
A civil penalty up to a maximum amount of $5,000 for any single violation of this title;
(4)
A declaratory judgment;
(5)
The appointment of a receiver or conservator for the defendant or the defendant’s assets;
(6)
A freeze of the defendant’s assets;
(7)
Rescission;
(8)
Restitution;
(9)
Disgorgement;
(10)
Payment of prejudgment and postjudgment interest; and
(11)
Any other relief as the court deems just.
(c)
An action under this section is not subject to the provisions of § 5–107 of the Courts and Judicial Proceedings Article.
(d)
The Commissioner may not be required to post a bond in any action under this section.
Md. Code Ann., Corps. & Ass'ns § 11-703 (2026)
Title 11. Maryland Securities Act
Subtitle 7. Enforcement and Penalties
§ 11–703LinkCopy Citation
(a)
(1)
A person is civilly liable to the person buying a security from him if he:
(i)
Offers or sells the security in violation of § 11–304(b), § 11–401(a), § 11–402(a), or § 11–501 of this title, or of any rule or order under § 11–205 of this title which requires the affirmative approval of sales literature before it is used; or
(ii)
Offers or sells the security by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading, the buyer not knowing of the untruth or omission, and if he does not sustain the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.
(2)
A person is civilly liable to the person selling a security to him if he offers to purchase or purchases the security by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading, the seller not knowing of the untruth or omission, and if he does not sustain the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.
(3)
A person is civilly liable to another person if the person:
(i)
Acts as an investment adviser or representative in violation of § 11–302(c), § 11–401(b), § 11–402(b), or § 11–304(b) of this title or any rule or order promulgated under it, except that an action based on a violation of § 11–402(b) of this title may not be maintained except by those persons who directly received advice from the unregistered investment adviser representative; or
(ii)
Receives, directly or indirectly, any consideration from another person for advice as to the value of securities or their purchase or sale or for acting as an investment adviser or representative under § 11–101(i) and (j) of this title, whether through the issuance of analyses, reports, or otherwise, and employs any device, scheme, or artifice to defraud such other person or engages in any act, practice or course of business which operates or would operate as a fraud or deceit on such other person.
(b)
(1)
A buyer may sue either at law or in equity:
(i)
On tender of the security, to recover the consideration paid for the security, together with interest at the rate provided for in § 11–107(a) of the Courts Article, as amended, from the date of payment, costs, and reasonable attorneys’ fees, less the amount of any income received on the security; or
(ii)
If he no longer owns the security, for damages.
(2)
A seller may sue either at law or in equity:
(i)
On tender of the consideration paid for the security, to recover the security, together with the amount of any income received on the security, costs, and reasonable attorneys’ fees; or
(ii)
If the buyer no longer owns the security, for damages.
(3)
For the purposes of subsection (b)(1)(ii) of this section, damages are the amount that would be recoverable on a tender less the value of the security when the buyer disposed of it and interest at the rate provided for in § 11–107(a) of the Courts Article, as amended, from the date of disposition.
(4)
(i)
In any action brought under subsection (a)(3) of this section a person may sue either at law or in equity for the rescission of the advisory contract and any damages resulting from the violation, together with interest at the rate provided for in § 11–107(a) of the Courts Article, as amended, from the date of payment of the consideration, costs, and reasonable attorneys’ fees, less the amount of any income received from such advice.
(ii)
An action based on a violation of § 11–302(c) of this title may not prevail where the person accused of the violation sustains the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of the existence of the facts by reason of which the liability is alleged to exist.
(c)
(1)
Every person who directly or indirectly controls a person liable under subsection (a) of this section, every partner, officer, or director of the person liable, every person occupying a similar status or performing similar functions, every employee of the person liable who materially aids in the conduct giving rise to the liability, and every broker–dealer or agent who materially aids in such conduct are also liable jointly and severally with and to the same extent as the person liable, unless able to sustain the burden of proof that he did not know, and in exercise of reasonable care could not have known, of the existence of the facts by reason of which the liability is alleged to exist.
(2)
There is contribution as in cases of contract among the several persons so liable.
(d)
Any tender specified in this section may be made at any time before entry of judgment.
(e)
Every cause of action under this statute survives the death of any person who might have been a plaintiff or defendant.
(f)
(1)
A person may not sue under subsections (a)(1) and (2) of this section after the earlier to occur of 3 years after the contract of sale or purchase or the time specified in paragraph (2) of this subsection.
(2)
An action may not be maintained:
(i)
To enforce any liability created under subsection (a)(1)(i) of this section, unless brought within one year after the violation on which it is based; or
(ii)
To enforce any liability created under subsection (a)(1)(ii) or (2) of this section, unless brought within one year after the discovery of the untrue statement or omission, or after the discovery should have been made by the exercise of reasonable diligence.
(3)
A person may not sue under subsection (a)(3) of this section more than 3 years after the date of the advisory contract or the rendering of investment advice, or the expiration of 2 years after the discovery of the facts constituting the violation, whichever first occurs.
(4)
A person may not sue under this section:
(i)
If the buyer received a written offer, before suit and at a time when he owned the security or asset, to refund the consideration paid together with interest at the rate provided for in § 11–107(a) of the Courts Article, as amended, from the date of payment, less the amount of any income received on the security or asset, and he failed to accept the offer within 30 days of its receipt;
(ii)
If the buyer received the offer before suit and at a time when he did not own the security or asset, unless he rejected the offer in writing within 30 days of its receipt; or
(iii)
If the seller received a written offer from the buyer, before suit, to return the security or asset, together with the amount of any income received on the security, less interest at the rate provided for in § 11–107(a) of the Courts Article, as amended, from the date of payment, and he failed to accept the offer within 30 days of its receipt.
(g)
A person may not base any suit on any contract if he:
(1)
Has made or engaged in the performance of the contract in violation of any provision of this title or any rule or order under this title; or
(2)
Has acquired any purported right under the contract with knowledge of the facts by reason of which its making or performance was in violation.
(h)
Any condition, stipulation, or provision binding any person acquiring any security or asset or receiving any investment advice to waive compliance with any provision of this title or any rule or order under this title is void.
(i)
The rights and remedies provided by this title are in addition to any other rights or remedies that may exist at law or in equity, but this title does not create any cause of action not specified in this section or § 11–410 of this title.
Md. Code Ann., Corps. & Ass'ns § 11-704 (2026)
Title 11. Maryland Securities Act
Subtitle 7. Enforcement and Penalties
§ 11–704LinkCopy Citation
(a)
Any person aggrieved by a final order of the Commissioner may obtain a review of the order in conformity with the procedure prescribed in the Maryland Rules and in the Administrative Procedure Act.
(b)
The commencement of proceedings under subsection (a) of this section, unless specifically ordered by the court, does not operate as a stay of the Commissioner’s order.
Md. Code Ann., Corps. & Ass'ns § 11-705 (2026)
Title 11. Maryland Securities Act
Subtitle 7. Enforcement and Penalties
§ 11–705LinkCopy Citation
(a)
(1)
Any person who willfully violates any provision of this title, except § 11–303 or § 11–305 of this title or who willfully violates any rule or order under this title except a rule or order under § 11–305 of this title, or who willfully violates § 11–303 of this title knowing the statement made to be false or misleading in any material respect, on conviction is subject to a fine not exceeding $50,000 or imprisonment not exceeding 3 years or both.
(2)
Any person who willfully violates § 11–305 of this title or who willfully violates a rule or order under § 11–305 of this title, on conviction is subject to a fine not exceeding $100,000 or imprisonment not exceeding 5 years or both.
(3)
A person may not be imprisoned for the violation of any rule or order if the person proves that the person had no knowledge of the rule or order.
(4)
An indictment or information may not be returned under this title more than 5 years after the alleged violation.
(b)
The Commissioner may refer available evidence concerning violations of this title or of any rule or order under this title to the State’s Attorney or the Attorney General who, with or without the reference, may institute the appropriate criminal proceedings under this title.
(c)
Nothing in this title limits the power of this State to punish any person for any conduct which constitutes a crime by statute or at common law.