Rule 80-15-1-.03. Administrative Fines

Rule 80-15-1-.03. Administrative Fines

1. (1) Except as otherwise indicated, these fines and penalties apply to any person, partnership, association, corporation, or any other group of individuals, however organized, that is required to be registered under Chapter 10 of Title 7. The Department, at its sole discretion, may waive or modify a fine based upon the financial resources of the person, gravity of the violation, history of previous violations, and such other facts and circumstances deemed appropriate by the department.
2. (2) All fines levied by the Department are due within thirty (30) days from the date of assessment.
3. (3) In addition to any fines levied by the Department, the recipient of the fine may be subject to additional administrative actions for the same underlying activity.

4. (4) The Department establishes the following fines and penalties for violation of the laws and rules governing litigation financing.

   1. (a) Operating Without Proper Registration. Any person who acts as a litigation financier prior to being approved for a registration as required under Chapter 10 of Title 7, or who acquires a litigation financing business without its own registration, or during the time an applicable cease and desist order is in effect, shall be subject to a fine of one thousand dollars ($1,000) per day.
   2. (b) Felons. Any registrant that hires or retains a director, officer, or partner or permits an individual to become an owner who is a felon as described in O.C.G.A. § 7-10-3(a)(2) when such individual has not complied with the remedies provided for in O.C.G.A. § 7-10-3(a)(2) for each conviction before such employment or ownership interest, shall be subject to a fine of five thousand dollars ($5,000) for each such individual.
   3. (c) Failure to Timely Disclose Change in Affiliation of Natural Person that Executed Lawful Presence Affidavit and Submission of New Affidavit. Any registrant that fails to disclose that the owner or executive officer that executed the lawful presence affidavit is no longer in that position with the registrant within ten (10) business days of the date of the event necessitating the disclosure, shall be subject to a fine of one thousand dollars ($1,000). Any registrant that fails to submit a new lawful presence affidavit from a current owner or executive officer within ten (10) business days of the owner or executive officer that executed the previous lawful presence affidavit no longer being in that position with the registrant, shall be subject to a fine of one thousand dollars ($1,000) per day until the new affidavit is provided.
   4. (d) Failure to Timely Update Information on the Nationwide Multistate Licensing System and Registry. Any registrant that fails to update its information on the Nationwide Multistate Licensing System and Registry ("NMLS") within ten (10) business days of the date of the event necessitating the change, shall be subject to a fine of one thousand dollars ($1,000) per occurrence. In addition, the failure of a director, officer, partner, or owner of a registrant to update the individual's information on the NMLSR within ten (10) business days of the date of the event necessitating the change, shall subject the registrant to a fine of one thousand dollars ($1,000) per occurrence.

Authority: O.C.G.A. § 7-10-11.

History. Original Rule entitled "Administrative Fines" adopted. F. Oct. 2, 2025; eff. Oct. 22, 2025.