(1) Subject to Section 57-19-17, if the director finds that an applicant or salesperson has engaged in an act described in Subsection (2), the director may:

1. (a) deny an application for registration as a salesperson;
2. (b) suspend or revoke an existing registration; or
3. (c) impose a civil penalty not to exceed $500.

(2) Subsection (1) applies if the director finds that the applicant or salesperson:

1. (a) files, or causes to be filed, with the director a document that contains an untrue or misleading information;
2. (b) makes an untrue or misleading statement of material fact;
3. (c) fails to state a material fact that is necessary in order to make the statements made not misleading in light of the circumstances under which the statements are made;
4. (d) employs a device, scheme, or artifice to defraud, or engages in an act, practice, or course of business that operates or would operate as a fraud or deceit upon a person;

5. (e) subsequent to the effective date of registration as a salesperson, is:

   1. (i) convicted of:

      1. (A) a felony; or
      2. (B) a misdemeanor involving theft, fraud, or dishonesty; or
   2. (ii) enjoined from, assessed a civil penalty for, or found to have engaged in a violation of any law designed to protect consumers;
6. (f) violates this chapter;
7. (g) engages in an activity that constitutes dishonest dealing; or
8. (h) engages in unprofessional conduct as defined by statute or rule made by the director.