Chap. 499.—An ACT to prevent unfairness, imposition or fraud in the
issuance, sale, promotion, negotiation, or distribution of any stocks,
bonds, notes or other securities or contracts, and to provide penalties
for violation thereof and to authorize the State corporation commis-
sion to make investigations in connection with the sale of such securi-
ties or contracts. (H. B. 66.)

Approved March 23, 1916.

1. Be it enacted by the general assembly of Virginia, That
if any person, including a corporation or association, and the
officers or agents thereof, alone or in common with others, hav-
ing devised or intending to devise any scheme or artifice to
defraud by the issuance, sale, promotion, negotiation or distri-
bution of any stocks, bonds, notes or other securities or con
tracts, or city, town or suburban lots, shall in or for executing
such scheme or artifice or in attempting so to do, commit any
overt act within the State, such person shall be guilty of a mis-
demeanor, and, upon conviction, be punishable by a fine of not
more than five thousand dollars or by confinement in jail for not
more than one year, or by both such fine or imprisonment.

2. The State corporation commission either itself or through
its duly appointed agent or agents, shall have the power to make
such investigation either as to persons or property as may be
deemed necessary or desirable by it in connection with the pro-
motion of any securities or contracts or city, town or suburban
lots in this State to determine whether the sale or offering of
the ‘same in this State constitutes a violation of this act by any
individual, corporation or association, and shall have the power
to issue subpoena and process compelling the attendance of any
person and the production of any papers and books for the pur-
pose of such investigation and examination, and shall have the
power to administer an oath to any person whose testimony
may be required on such examination or investigation.

3. If the State corporation commission shall determine that
any such promotion or offering for sale of securities or contracts
or city, town or suburban lots constitutes a violation of this act
it shall immediately take such steps through such local authori-
ties as may be proper to cause the arrest and prosecution of all
persons deemed guilty thereof.

4. Indictments and presentments found under this act shall
not be certified to a magistrate for trial.