(a) The office may revoke, or deny an application for, registration or degree or name approval to a school if there has been a criminal, civil, or administrative adjudication of fraud or misrepresentation in Minnesota or in another state or jurisdiction against the school or its owner, officers, agents, or sponsoring organization. If the adjudication was related to a particular academic program, the office may revoke or deny an application for:
(1) degree approval for the program only;
(2) registration for the school; or
(3) name approval for the school.
(b) The adjudication of fraud or misrepresentation is sufficient cause for the office to determine that a school:
(1) does not qualify for exemption under section 136A.657; or
(2) is not approved to grant degrees or to use the term "academy," "college," "institute," or "university" in its name.