Prima facie evidence of fraud — Violations — Penalty — Cure for violations.

     *** CHANGE IN 2013 *** (SEE 5082-S.SL) ***

(1) Failure to fulfill the requirements under RCW 19.310.040 constitutes prima facie evidence that the exchange facilitator intended to defraud a client who suffered a subsequent loss of the asset entrusted to the exchange facilitator.

     (2) A person who engages in business as an exchange facilitator and who violates RCW 19.310.100 (1) through (8) or fails to comply with the requirements under RCW 19.310.040 is guilty of a class B felony under chapter 9A.20 RCW. However, an exchange facilitator is not guilty of a class B felony for failure to comply with the requirements under RCW 19.310.040 if: (a) Failure to comply is due to the cancellation or amendment of the fidelity bond by the bond issuer; and (b) the exchange facilitator:

     (i) Within thirty days, takes all reasonable steps to comply with the requirements under RCW 19.310.040; and

     (ii) Deposits any new exchange funds into a qualified escrow account or qualified trust until a fidelity bond is obtained that meets the requirements under RCW 19.310.040(1)(a)(i).

[2012 c 34 § 4; 2009 c 70 § 13.]

Notes: