A person may not knowingly make or cause to be made a false statement or report in any document required to be furnished to the Department in connection with a loan under the Program. A person applying for or benefiting from a loan under the Program may not knowingly make or cause to be made a false statement or report for the purpose of influencing the action of the Department on an application or for the purpose of influencing the action of the Department affecting financial assistance already provided. A person who violates §A or B of this regulation is subject to the following penalties: Immediate cancellation or acceleration of the form of financial assistance provided by the Program; and Upon conviction of a misdemeanor is subject to a fine not exceeding $50,000, or imprisonment not exceeding 5 years, or both.