California Business And Professions Code Section 7587.4

The director may suspend or revoke a license issued under this chapter if he or she determines that the licensee or his or her manager, if an individual, or if the licensee is a person other than an individual, that any of its officers, directors, partners, or its manager, has committed any act in the course of the licensee`s business constituting dishonesty or fraud. Dishonesty or fraud as used in this section, includes, in addition to other acts not specifically enumerated herein: (a) Knowingly making a false statement relating to evidence or information obtained in the course of employment, or knowingly publishing a slander or a libel in the course of business. (b) Using illegal means in the collection or attempted collection of a debt or obligation. (c) Manufacture of evidence. (d) Acceptance of employment adverse to a client or former client relating to a matter with respect to which the licensee has obtained confidential information by reason of or in the course of his or her employment by the client or former client.