Under Section 13.1-518 of the Virginia Securities Act, the Commission is authorized to conduct investigations of suspected violations of the Virginia Securities Act. Investigation files are confidential and cannot be released to the general public. We initiate investigations based on consumer complaints, referrals from outside agencies, and investigative surveillance. All complaints of reasonable merit are investigated. Investigations, which uncover violations, can be referred to outside state or federal criminal investigative agencies for criminal prosecution, brought before the Commission for a formal hearing for civil violations, or resolved by a Commission settlement order.

Common violations which have resulted in official actions by us or prosecutions by outside police agencies are as follows:

• Failure to register broker-dealers or their agents, investment advisors or their representatives and securities
• Exercising discretionary trading in a customer's account without authority to do so
• Misrepresentation of fees, expected or past performance, investment risk, agent or representative experience or expertise, investment liquidity and identity and experience of principles and promoters
• Misappropriation of customer funds
• Theft of customer funds
• Deceitful sale of securities or giving of advice, with the intent to defraud or resulting in fraud
• Omission of material facts