Yes. The TD has control to place players in whatever division (s)he wishes. If a nonmember wants to play Intermediate, the TD can say they have to play Advanced or even Open if it's appropriate. I believe TDs get the ratings of the non-current members in their area so they know what level they are.
What if the guy was rated 950 but hasn't payed dues in three years and is more like a 1000 rated player? Can you still bump him to Open?