§ 42–1904.17. Penalties; prosecution by Attorney General.

(a) Notwithstanding § 22-3571.01, a person shall be fined not less than $1,000 or double the amount of gain from the transaction, whichever is the larger, but not more than $50,000, or may be imprisoned for not more than 6 months, or both, for each offense, who knowingly or recklessly:

(1) Violates any provision of this chapter or any rule adopted and published under or order issued pursuant to § 42-1904.12;

(2) Makes any untrue statement of a material fact or omits to state a material fact in an application for registration; or

(3) Materially misrepresents the estimated construction or conversion costs in the posting of a bond or letter of credit or other security posted pursuant to § 42-1903.16.

(b) Prosecution for violations of this chapter shall be brought in the name of the District of Columbia by the Attorney General.

(c)(1) Notwithstanding the provisions of subsection (a) of this section, the Mayor may suspend any declarant, officer, director, shareholder, partner, employee, or other individual associated with a declarant from:

(A) Participating in the recordation of any condominium instrument creating a condominium; or

(B) Selling, conveying, or participating in the sale or conveyance of condominium units upon receipt of facts that demonstrate to the satisfaction of the Mayor that the person was directly involved in:

(i) Fraud, embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, criminal tax evasion, or violating criminal tax laws;

(ii) An unfair or deceptive trade practice pursuant to Chapter 39 of Title 28;

(iii) The knowing uttering of an untrue statement of material fact in connection with:

(I) The creation or marketing of a condominium;

(II) Estimated construction or conversion costs of a condominium; or

(III) Costs of construction to substantiate the amount of a bond, letter of credit or other security posted pursuant to § 42-1903.16.

(2) The Mayor shall advise by certified mail, return receipt requested, a person that is suspended pursuant to this subsection, that:

(A) The person has been suspended;

(B) The suspension shall remain pending the completion of an investigation; and

(C) The person may within 30 calendar days after the mailing of the notice submit, in person, in writing, or through a representative, information and argument in opposition to the suspension, including any additional specific information that raises a genuine dispute over the material facts or the application of the law.

(3) If it is determined that the suspended person's submission in opposition raises a genuine dispute over facts material to the suspension or the application of the law, the suspended person shall be afforded an opportunity to appear with counsel, submit documentary evidence, present witnesses, and confront any appearing witness.

(4) The Mayor:

(A) Shall render a decision based on all the information in the administrative record, including any submission made by the suspended person, after the conclusion of the proceedings; and

(B) May terminate, modify, or leave in force the suspension for a period up to, but not to exceed, 36 months. Prompt written notice of the decision shall be sent to the suspended person by certified mail, return receipt requested.

(5) The fraudulent, criminal, or other seriously improper conduct of any officer, director, shareholder, partner, employee, or other individual associated with a declarant may be imputed to:

(A) The declarant when the conduct occurred in connection with the individual's performance of duties for or on behalf of the declarant, or with the declarant's knowledge, approval, or acquiescence; or

(B) Any officer, director, shareholder, partner, employee, or other individual associated with the declarant who participated in, knew of, or had reason to know of the declarant's conduct.

(6) The acceptance of a benefit derived from fraudulent, criminal, or other seriously improper conduct shall be evidence of such knowledge, approval, or acquiescence.

(7) The declarant may appeal a determination by the Mayor under this section to the Office of Administrative Hearings.

(d)(1) Civil fines, penalties, and fees may be imposed as alternative sanctions for any infraction of the provisions of this subchapter, or any rules or regulations issued under the authority of this subchapter, pursuant to Chapter 18 of Title 2.

(2) Adjudication of any infraction of this subchapter shall be pursuant to Chapter 18 of Title 2.