46 U.S.C. § 31330

1. (a)
   1. (1)A mortgagor shall be fined under title 18, imprisoned for not more than 2 years, or both, if the mortgagor—
      1. (A)with intent to defraud, does not disclose an obligation on a vessel as required by section 31323(a) of this title;
      2. (B)with intent to defraud, incurs a contractual obligation in violation of section 31323(b) of this title; or
      3. (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. (2)A mortgagor is liable to the United States Government for a civil penalty of not more than $10,000 if the mortgagor—
      1. (A)does not disclose an obligation on a vessel as required by section 31323(a) of this title;
      2. (B)incurs a contractual obligation in violation of section 31323(b) of this title; or
      3. (C)files with the Secretary a mortgage made not in good faith.
2. (b)
   1. (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. (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. (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.
3. (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.