If any contractor or other person receiving payment from an obligor for an improvement
to real property or from a purchaser for a conveyance of real property with improvements
subject to this Article or to Article 3 of this Chapter shall knowingly furnish to
such obligor, purchaser, or to a lender who obtains a security interest in said real
property, or to a title insurance company insuring title to such real property, a
false written statement of the sums due or claimed to be due for labor or material
furnished at the site of improvements to such real property, then such contractor,
subcontractor or other person shall be guilty of a Class 1 misdemeanor. Upon conviction and in the event the court shall grant any defendant a suspended
sentence, the court may in its discretion include as a condition of such suspension
a provision that the defendant shall reimburse the party who suffered loss on such
conditions as the court shall determine are proper.
The elements of the offense herein stated are the furnishing of the false written
statement with knowledge that it is false and the subsequent or simultaneous receipt
of payment from an obligor or purchaser by the person signing the document, a person
directing another to sign the document, or any person or entity for whom the document
was signed. In any criminal prosecution hereunder it shall not be necessary for the State to
prove that the obligor, purchaser, lender or title insurance company relied upon the
false statement or that any person was injured thereby.
In addition to the criminal sanctions created by this section, conduct constituting
the offense herein stated and causing actual harm to any person by any licensed contractor
or qualifying party, as that term is used in Chapter 87 of the General Statutes, shall constitute deceit and misconduct subject to disciplinary action under Chapter 87 of the General Statutes, including revocation, suspension, or restriction of a license or the ability to
act as a qualifying party for a license.
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