State RegulationsNC specificDifficulty 3/5
A business entity willfully makes a false statement in a financial statement filed under oath with the Commissioner, and the responsible individual is charged with a Class I felony. What fine may the court impose on the entity?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under G.S. 58-2-180, a willful false statement in a document under oath or subscription is a Class I felony for the individual, and the court fines the entity not less than $2,000 nor more than $10,000. The entity fine is a separate court-imposed sanction and must not be confused with the Commissioner's administrative penalty ranges.
Why the other options are wrong
- A) The $100 to $1,000 range is the Commissioner's general civil penalty under G.S. 58-2-70(d), not the court's fine on the entity under G.S. 58-2-180.
- B) The $1,000 to $5,000 forfeiture applies to willful violations of cease-and-desist orders under G.S. 58-63-50.
- D) The entity is subject to a court fine under G.S. 58-2-180; the Class 1 misdemeanor treatment belongs to false application statements under G.S. 58-33-105.
Memory hook
Entity lies under oath: the court hits the company for two to ten grand.