A Maryland applicant entity in 2026 has an owner of 15% with a recent felony fraud conviction. Does this ownership share bring the recent fraud conviction within the mandatory-denial rule?
Correct Answer
A) Mandatory denial reaches owners of 10 percent or more
The Commissioner shall deny an application filed by an entity that has a director, officer, partner, member or owner of 10 percent or more convicted within the last 10 years of a felony involving fraud, theft or forgery. Other choices: owners are named alongside directors and officers; the figure is 10 percent; and taking no active role is not a carve-out. Source: Md. Fin. Inst. § 11-506(c)(2)(ii)
Why This Is the Correct Answer
The Commissioner shall deny an application filed by an entity that has a director, officer, partner, member or owner of 10 percent or more convicted within the last 10 years of a felony involving fraud, theft or forgery. Other choices: owners are named alongside directors and officers; the figure is 10 percent; and taking no active role is not a carve-out. Source: Md. Fin. Inst. § 11-506(c)(2)(ii)
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