The director may suspend or revoke a license issued under this chapter if he or she determines that the licensee or his or her qualified manager, if an individual, or if the licensee is a person other than an individual, that any of its officers, directors, partners, members, managers, or qualified manager, has committed any act in the course of the licensee’s business constituting dishonesty or fraud.

“Dishonesty or fraud” as used in this section, includes, in addition to other acts not specifically enumerated herein:

Terms Used In California Business and Professions Code 7561.4

  • director: means the Director of Consumer Affairs, unless the context indicates otherwise. See California Business and Professions Code 7512.1
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Fraud: Intentional deception resulting in injury to another.
  • license: means license, certificate, registration, or other means to engage in a business or profession regulated by this code or referred to in Section 1000 or 3600. See California Business and Professions Code 23.7
  • licensee: means a person licensed under this chapter. See California Business and Professions Code 7512.6
  • manager: means an individual designated under an operating agreement of a manager-managed limited liability company who is responsible for performing the management functions for the limited liability company specified in subdivision (c) of §. See California Business and Professions Code 7512.15
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • person: includes any individual, firm, company, limited liability company, association, organization, partnership, and corporation. See California Business and Professions Code 7512.3
  • qualified manager: means the individual under whose direction, control, charge, or management the business of a licensee is operated as specified in Section 7536. See California Business and Professions Code 7512.7

(a) Knowingly making a false statement relating to evidence or information obtained in the course of employment, or knowingly publishing a slander or a libel in the course of business.

(b) Using illegal means in the collection or attempted collection of a debt or obligation.

(c) Manufacture of evidence.

(d) Acceptance of employment adverse to a client or former client relating to a matter with respect to which the licensee has obtained confidential information by reason of or in the course of his or her employment by the client or former client.

(Amended by Stats. 2017, Ch. 569, Sec. 35. (SB 559) Effective January 1, 2018.)

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