Tenn. Code Ann. § 48-1-104: Securities registration requirement — Civil penalty.

(a) It is unlawful for any person to sell any security in this state unless:

(1) It is registered under this part;

(2) The security or transaction is exempted under § 48-1-103; or

(3) The security is a covered security.

(b) The commissioner may, after notice and opportunity for a hearing under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, impose a civil penalty against any person found to be in violation of this section, or any rule or order adopted or issued under this section, in an amount not to exceed ten thousand dollars ($10,000) per violation, or in an amount not to exceed twenty thousand dollars ($20,000) per violation if an individual who is a designated adult is a victim.