A person may not knowingly and willfully falsify or conceal a material fact in connection with an application for funds from the Maryland Higher Education Commission. A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 1 year or a fine not exceeding $5,000 or both. The Maryland Higher Education Commission shall notify each applicant for funds of the conduct that constitutes a violation of this section before a State scholarship award or grant is awarded.