[Porsche-O-Phile]

Yep all of the above. Most likely they'll order an immediate cessation of work and depending on the inspector and how the guy reacts, they'll make his life anywhere from "expensive and inconvenient" to "downright hellish". IIRC they can condemn the unpermitted work and forcibly demolish it, but I've never heard of that actually happening - only that they'll make them rip out work that is not to code and they make life very difficult and expensive for such persons.