§ 12-426. Violations

   (a) Violations of subtitle. -- Subject to the hearing provisions of § 12-428 of this subtitle, the Commissioner may suspend or revoke the license of any licensee if:

   (1) The licensee or any owner, director, officer, member, coventurer, partner, stockholder, employee, or agent of the licensee:

      (i) Makes any material misstatement in an application for a license;

      (ii) Conducts the business of money transmission in an unsafe or unsound manner;

      (iii) Refuses to permit the Commissioner to make an examination authorized under this subtitle;

      (iv) Willfully fails to make a report required under this subtitle;

      (v) Is convicted under the laws of the United States or any state of a felony or a misdemeanor that is directly related to the fitness and qualification of the person to engage in the business of money transmission;

      (vi) In connection with any money transmission transaction:

         1. Commits a fraud;

         2. Engages in an illegal or dishonest activity; or

         3. Misrepresents or fails to disclose a material fact to a governmental agency;

      (vii) Violates any provision of this subtitle or any regulation adopted under this subtitle, or any other law regulating the business of money transmission; or

      (viii) Otherwise demonstrates unworthiness, bad faith, dishonesty, or any other quality that indicates that the business of the licensee has not been or will not be conducted honestly, fairly, equitably, and efficiently; or

   (2) The licensee:

      (i) Has inadequate net worth and the licensee, after 10 days' written notice from the Commissioner, fails to take steps that the Commissioner deems necessary to remedy the deficiency;

      (ii) Becomes insolvent;

      (iii) Has suspended payment of its obligations, made an assignment for the benefit of its creditors, or admitted its inability to pay its debts as they become due; or

      (iv) Has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any bankruptcy proceeding.

(b) Considerations. -- In determining whether a license should be suspended or revoked for a reason identified in subsection (a)(1)(v) of this section, the Commissioner shall consider:

   (1) The nature of the crime;

   (2) The relationship of the crime to the activities authorized by the license;

   (3) With respect to a felony, the relevance of the conviction to the fitness and qualification of the licensee to engage in the business of money transmission;

   (4) The length of time since the conviction; and

   (5) The behavior and activities of the licensee since the conviction.

(c) Order to terminate relationship with authorized delegate. -- Subject to the hearing provisions of § 12-428 of this subtitle, the Commissioner may issue an order to the licensee to terminate its relationship with an authorized delegate if the Commissioner finds that:

   (1) The authorized delegate or a director, officer, employee, or person that has control of the authorized delegate:

      (i) Has violated any provision of this subtitle or any regulation adopted or order issued under this subtitle;

      (ii) Has engaged or participated in an unsafe or unsound act with respect to the business of money transmission;

      (iii) Has made or caused to be made in any application or report filed with the Commissioner or in a proceeding before the Commissioner, a statement which was at the time and in the circumstances under which it was made, false or misleading with respect to a material fact, or has omitted to state in an application or report a material fact which is required to be stated; or

      (iv) Has failed to cooperate with an examination or investigation by the Commissioner authorized by this subtitle; or

   (2) The competence, experience, integrity, financial condition, or overall moral character of the authorized delegate, or a director, officer, employee, or person that has control of the authorized delegate, indicates that it would not be in the interest of the public to permit the person to engage in the business of money transmission.

(d) Application to modify or rescind order. --

   (1) The authorized delegate about whom an order is issued under this section may apply to the Commissioner to modify or rescind the order.

   (2) The Commissioner may not grant an application filed under paragraph (1) of this subsection unless the Commissioner finds that:

      (i) It is in the public interest to modify or rescind the order; and

      (ii) It is reasonable to believe that the authorized delegate, if and when permitted to resume acting as an authorized delegate of a licensee, will comply with all applicable provisions of this subtitle and any regulation adopted or order issued under this subtitle.

(e) Enforcement by Commissioner. --

   (1) The Commissioner may enforce the provisions of this subtitle by issuing an order:

      (i) To cease and desist and to take affirmative action from the violation and any further similar violations; and

      (ii) Requiring the violator to take affirmative action to correct the violation including the restitution of money or property to any person aggrieved by the violation.

   (2) If a violator fails to comply with an order issued under paragraph (1) of this subsection, the Commissioner may impose a civil penalty of up to $ 1,000 for the first violation and $ 5,000 for each subsequent violation from which the violator failed to cease and desist or for which the violator failed to take affirmative action.

(f) Circuit court petition. -- The Commissioner may file a petition in the circuit court for any county seeking enforcement of an order issued under this section.

(g) Determining amount of financial penalty. -- In determining the amount of financial penalty to be imposed under subsection (e) of this section, the Commissioner shall consider the following:

   (1) The seriousness of the violation;

   (2) The good faith of the violator;

   (3) The violator's history of previous violations;

   (4) The deleterious effect of the violation on the public;

   (5) The assets of the violator; and

   (6) Any other factors relevant to the determination of the financial penalty.

HISTORY: An. Code 1957, art. 11, § 218; 1980, ch. 33, § 2; ch. 541; 1996, ch. 326, § 2; 1997, ch. 23; 2002, ch. 539; 2003, ch. 21, § 1.