2005 California Financial Code Sections 50500-50510 CHAPTER 7. PROHIBITED PRACTICES AND PENALTIES

50500.  Any person who willfully violates any provision of this
division, or any rule or order under this division, shall, upon
conviction, be subject to a fine of not more than ten thousand
dollars ($10,000) or imprisonment in the state prison or in a county
jail for not more than one year, or to both that fine and
imprisonment.  No person may be imprisoned for the violation of any
rule or order unless he or she had knowledge of the rule or order.
Conviction under this section shall not preclude the commissioner
from exercising the authority provided in Section 50320.
50501.  (a) Any person who violates a provision of this division, or
any rule or order under this division, shall be liable for a civil
penalty not to exceed two thousand five hundred dollars ($2,500) for
each violation.  This penalty shall be assessed and recovered in a
civil action brought in the name of the people of the State of
California by the commissioner in any court of competent
jurisdiction.
   (b) As applied to the penalties for acts in violation of this
division, the remedies provided by this section and by other sections
of this division are not exclusive, and may be sought and employed
in any combination to enforce the provisions of this division.
50502.  It is a violation of this division for any person to make
any untrue statement of a material fact in any document filed with
the commissioner under this division or rules adopted thereunder, or
to omit any material fact which is required to be stated in any
document.
50503.  (a) It is a violation for any person subject to this law or
any director, partner, shareholder controlling an ownership interest
of 10 percent or more, trustee, officer, agent, or employee of any
such person to do any of the following:
   (1) Knowingly or recklessly disburse or cause the disbursal of
trust funds, except as permitted by Section 50202, or knowingly or
recklessly to direct, participate in, or aid or abet in a material
way, any activity that constitutes theft or fraud in connection with
any trust fund transaction.
   (2) Knowingly or recklessly make or cause to be made any
misstatement or omission of a material fact, pertaining to a loan or
loan servicing.
   (b) Any director, officer, partner, shareholder controlling an
ownership interest of 10 percent or more, trustee, or employee of a
residential mortgage loan servicer who abstracts or misappropriates
money, funds, trust obligations, or property deposited with a
licensee, commits a violation of this section.  If a violation
results in a criminal conviction, the court shall, in addition to any
other punishment imposed, order the person to make full restitution.
  Nothing in this section shall be deemed or construed to repeal,
amend, or impair any existing provision of law prescribing a
punishment for such an offense.
50504.  (a) If an amount other than or in excess of the charges
permitted by this division is willfully charged, contracted for, or
received, in addition to any other penalties or remedies, the
commissioner may order the licensee to refund to all borrowers
charged the excess amount, the excess amount and the amount of the
charge, both with interest at the rate of 10 percent per annum,
calculated from the date the improper charge was imposed.
   (b) If interest on the principal amount of a loan in excess of the
amount authorized by this division is willfully charged, contracted
for, or received, in addition to any other penalties or remedies, the
commissioner may order the licensee to refund the excess interest
amount to all borrowers charged the excess amount, with interest at
the rate of 10 percent per annum, calculated from the date the
improper charge was imposed.
50505.  Any person who violates any provision of the federal Real
Estate Settlement Procedures Act, as amended (12 U.S.C.A. Sec. 2601
et seq.), or any regulation promulgated thereunder, violates this
division.
50506.  Any director, officer, partner, trustee, or employee of a
licensee, its holding company, or its affiliates who knowingly
receives or appropriates any of the licensee's property, other than
in payment of a just demand or with intent to defraud, or who omits
to make or causes an omission to be made in the full and true entry
thereof in its books and accounts or concurs in omitting to make any
material entry thereof, violates this division.
50507.  Any director, officer, partner, trustee, or employee of a
licensee, its holding company, or its affiliates who knowingly makes
or concurs in making or publishing any false entry in its books or
records, any written report, exhibit, or statement of its affairs or
pecuniary condition containing any material statement which is false,
or having the custody of its books, willfully refuses or neglects to
make any proper entry in the books as required by law or to allow
the books to be inspected by the commissioner or his or her deputies
or investigators, violates this division.
50508.  Any director, officer, partner, trustee, or employee of a
licensee, its holding company, or its affiliates who makes a false
entry in any book or record of the business, or in connection with
any transaction of the business, with intent to deceive any officer,
director, or employee thereof, or any agent or examiner, employed or
lawfully appointed to examine into its condition or any of its
affairs or transactions, or to any public officer who has authority
to examine into its affairs or transactions, or who, with like
intent, omits to make a new entry of any matter particularly
pertaining to the business property condition, or transactions of the
entity in any document of the licensee, or who, with like intent,
makes unavailable any document of the licensee made, written, or
kept, or required to be made, written, or kept by him or her under
his or her direction, violates this division.
50509.  Any officer, director, partner, trustee, or employee of any
entity who abstracts or misapplies any of the money, funds, or
property of a licensee, or misapplies its credit, or abstracts or
misapplies money, funds, trust obligations, or property deposited
with a licensee, violates this division.  If a violation results in a
criminal conviction, the court shall, in addition to any other
punishment imposed, order the person to make full restitution to the
licensee.  Nothing in this section shall be deemed or construed to
repeal, amend, or impair any existing provision of law prescribing a
punishment for such an offense.
50510.  Nothing in this chapter shall be construed to authorize a
criminal prosecution for a violation of a civil statute incorporated
by reference into this division.  Civil monetary penalties and fines
shall not be imposed under this law for a violation of subdivision
(e) or (j) of Section 50204 or Section 50505 if a licensee
demonstrates that it has paid a civil monetary penalty or fine for
the same act or transaction, as a violation of Section 17200 or 17500
of the Business and Professions Code, Section 2941 of the Civil
Code, or provisions of the Real Estate Settlement Procedures Act (12
U.S.C.A. Sec. 2601 et seq.).