PUBLIC LAW 100-656—NOV. 15, 1988 102 STAT. 3875

"(i) A listing of any agents, representatives, attorneys,
accountants, consultants, and other parties (other than employ-
ees) receiving compensation to assist in obtaining a Federal
contract for such Program Participant.

"(ii) The amount of compensation received by any person
listed under clause (i) during the relevant reporting period and
a description of the activities performed in return for such
compensation.

"(B) The Business Opportunity Specialist shall promptly review
and forward such report to the Associate Administrator for Minority
Small Business and Capital Ownership Development. Any report
that raises a suspicion of improper activity shall be reported imme-
diately to the Inspector General of the Administration.

"(C) The failure to submit a report pursuant to the requirements
of this subsection and applicable regulations shall be considered
'good cause' for the initiation of a termination proceeding pursuant
to section 7(jX10XF)/'.

SEC. 405. FALSE REPRESENTATIONS.

(a) PENALTY FOR MISREPRESENTATION.—Section 16(d) of the Small
Business Act (15 U.S.C. 645(d)) is amended to read as follows:

"(dXD Whoever misrepresents the status of any concern or person
as a 'small business concern' or 'small business concern owned and
controlled by socially and economically disadvantage^ individuals',
in order to obtain for oneself or another any—

"(A) prime contract to be awarded pursuant to section 9 or 15;

"(B) subcontract to be awarded pursuant to section 8(a);

"(C) subcontract that is to be included as part or all of a goal
contained in a subcontracting plan required pursuant to section
8(d);or

"(D) prime or subcontract to be awarded as a result, or in
furtherance, of any other provision of Federal law that specifi-
cally references section 8(d) for a definition of program eligi-
bility, shall be subject to the penalties and remedies described
in paragraph (2).
"(2) Any person who violates paragraph (1) shall—

"(A) be punished by a fine of not more than $500,000 or by
imprisonment for not more than 10 years, or both;

"(B) be subject to the administrative remedies prescribed
by the Program Fraud Civil Remedies Act of 1986 (31 U.S.C.
3801-3812);

"(C) be subject to suspension and debarment as specified in
subpart 9.4 of title 48, Code of Federal Regulations (or any
successor regulation) on the basis that such misrepresentation
indicates a lack of business integrity that seriously and directly
affects the present responsibility to perform any contract
awarded by the Federal Government or a subcontract under
such a contract; and

"(D) be ineligible for participation in any program or activity
conducted under the authority of this Act or the Small Business
Investment Act of 1958 (15 U.S.C. 661 et seq.) for a period not to
exceed 3 years.".

(b) MISREPRESENTATION OF SECTION 7 COMPLIANCE.—Section 16 of
the Small Business Act (15 U.S.C. 645) is amended by adding at the
end thereof the following new subsection: