§ 31330. Penalties

• (a)
  • (1) A mortgagor shall be fined under title 18, imprisoned for not more than 2 years, or both, if the mortgagor—
    • (A) with intent to defraud, does not disclose an obligation on a vessel as required by section 31323(a) of this title ;
    • (B) with intent to defraud, incurs a contractual obligation in violation of section 31323(b) of this title ; or
    • (C) with intent to hinder or defraud an existing or future creditor of the mortgagor or a lienor of the vessel, files a mortgage with the Secretary.
  • (2) A mortgagor is liable to the United States Government for a civil penalty of not more than $10,000 if the mortgagor—
    • (A) does not disclose an obligation on a vessel as required by section 31323(a) of this title ;
    • (B) incurs a contractual obligation in violation of section 31323(b) of this title ; or
    • (C) files with the Secretary a mortgage made not in good faith.
• (b)
  • (1) A person that knowingly violates section 31329 of this title shall be fined under title 18, imprisoned for not more than 3 years, or both.
  • (2) A person violating section 31329 of this title is liable to the Government for a civil penalty of not more than $25,000.
  • (3) A vessel involved in a violation under section 31329 of this title and its equipment may be seized by, and forfeited to, the Government.
• (c) If a person not an individual violates this section, the president or chief executive of the person also is subject to any penalty provided under this section.