What action can be taken against a contractor found guilty of fraud?

When a contractor is found guilty of fraud, one of the most severe actions that can be taken is the permanent revocation of their license. This measure is in place to protect the public from dishonest practices and to ensure the integrity of the construction industry. Maintaining ethical standards is crucial, and fraud undermines trust between contractors and clients, as it can lead to financial harm or unsafe construction practices.

Revoking a license stops a contractor from legally engaging in business activities, thus preventing further fraudulent behavior. This action serves not only as a punishment for the contractor but also acts as a deterrent for others in the industry who might consider similar wrongdoing. Given the implications of fraud, regulatory bodies prioritize accountability through stringent measures such as license revocation.

In contrast, options suggesting fines or restitution do not capture the full extent of consequences for serious offenses like fraud, while the option stating that there are no penalties is incorrect, as it disregards the established legal framework meant to address such misconduct.