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Not entirely true. He/she cannot hold themselves out as possessing a specialty in a board certifiable specialty, but they can practice as physicians. And I know of at least one who does: washed out of his residency at Mass General decades ago, but still practices general medicine. Although, for my money, I'd never allow anyone near me who wasn't board certified.
Does he hold a license? Ifve never heard of someone practicing without a license directly on people legally. (Radiologists and pathologists who don't touch people excepted.)