I keep seeing practice questions about the Administrator issuing an “i...

The state securities Administrator regulates all investment adviser representatives in the state and all state-registered investment advisory firms. If an IAR or RIA is found to be harming investors and violating securities regulations, the individual or firm receives a notice from the Administrator announcing the alleged violations, explaining the rules/laws allegedly violated, and announcing the upcoming hearing—or how the respondent may request a hearing. After a disciplinary hearing is held, an order to suspend or revoke the license of an IAR or RIA may be issued.

On the other hand, if an individual or business outside the advisory business is, for example, issuing promissory notes to investors in the state and failing to honor the terms of the securities, the Administrator has no license to threaten to suspend or revoke. In these cases, a cease and desist order is typically issued. 

Only a judge/court of law has the authority to issue an injunction. If an injunction is issued against any person (individual or firm), the Administrator can use that to deny, suspend, or revoke an application or registration. So, the individual issuing bogus promissory notes is still not facing dire consequences, although his ability to work as an agent, IAR, etc. in the future is doubtful. And, if a court of law were to issue a restraining order/injunction against an individual selling promissory notes in a way that violates the law and the individual disregards the order, criminal penalties are a possible outcome.