Investigation

The Administrator may conduct investigations:

1. A.Inside or outside the stateCorrect - jurisdiction extends beyond state lines for investigations.
2. B.Only with SEC permissionState investigative authority stands on its own. The Administrator does not ask the federal regulator for clearance before looking into conduct that affects the state's own investors.
3. C.NeverWithout the power to investigate, the office could not enforce a single provision of the Act. Every sanction depends on first being able to find out what happened.
4. D.Only within the stateThe most defensible answer, since state authority is territorial in many settings. Conduct that harms a state's investors is frequently run from somewhere else, so the investigative power deliberately reaches beyond the state's borders.

Why: The Administrator may investigate suspected violations both inside and outside the state.

During an investigation under the Uniform Securities Act, the Administrator's subpoena power:

1. A.Applies only after criminal charges are filedWrong. Subpoena power exists during investigations, before any charge or violation is proven.
2. B.Extends to witnesses and records located outside the state, with contempt enforced through the courtsCorrect. Investigations and subpoenas may reach beyond state borders, with judicial contempt enforcement.
3. C.Permits the Administrator itself to jail noncompliant witnessesWrong. Contempt sanctions are imposed by a court, not the Administrator.
4. D.Is limited strictly to persons physically present in the stateWrong. Sec. 407 authorizes investigations and subpoenas outside the state.

Why: The Administrator may conduct investigations inside or outside the state, subpoena witnesses and require production of documents wherever located, and seek a court order holding a noncomplying person in contempt. Citation: Uniform Securities Act Sec. 407. Takeaway: investigative reach crosses state lines; courts supply the contempt teeth.