The Utah Supreme Court has upheld a district judge's decision to bar the Utah Division of Securities from seeking administrative action against a Utah broker back in 2005.

The investigation of broker Richard Mack was one of several cases outlined in a scathing legislative audit report, which came amid the resignation of Division director Wayne Klein last year.

The division had filed a civil petition against Mack in state court seeking license sanctions and fines. The petition accused him of failing to adequately supervise a broker who was selling unregistered securities.

After reviewing the division's evidence, a judge ruled the case should be dismissed. The judge also issued an injunction against the division when it sought additional administrative sanctions against Mack within its own division. The division appealed the decision to the state Supreme Court.

In its opinion issued Friday, the top court ruled the district judge properly issued the injunction and that the division's administrative claims should have been brought forward in the district court action. The division had argued the district court had no jurisdiction over its administrative action against Mack, however justices disagreed and concluded Utah law grants the district court broad authority over the division's administrative actions.

The investigation against Mack was outlined in a legislative audit report, which found numerous problems with the Division of Securities' investigative policies.

The audit was requested by Rep. Jim Bird, R-West Jordan, who was a former business associate of Mack, according to the Utah Department of Commerce, which oversees he securities division.

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