(a) A person may not file a lien or an encumbrance in a public or private record against the real or personal property of another if the person knows that the lien or encumbrance is:
(1) false; or
(2) contains or is based on a materially false, fictitious, or fraudulent statement or representation.
(b) A person who violates this section is guilty of a misdemeanor and on conviction is subject to:
(1) for a first violation, imprisonment not exceeding 1 year or a fine not exceeding $10,000 or both; and
(2) for each subsequent violation, imprisonment not exceeding 5 years or a fine not exceeding $10,000 or both.
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