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"Khosla could face fines of $11,250 a day, or more than $4 million a year, for every violation of the state’s Coastal Act"

For someone worth over $1 billion that's a pittance. He'll makes more than that simply by putting his money in short term CDs. (Or the 7% returns from the S&P 500.)

Could he also be jailed for violating a court order? That would get his attention.