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U.S. Code as of:
01/19/04
Section 938. Penalties
(a) Failure to secure payment of compensation
Any employer required to secure the payment of compensation under
this chapter who fails to secure such compensation shall be guilty
of a misdemeanor and, upon conviction thereof, shall be punished by
a fine of not more than $10,000, or by imprisonment for not more
than one year, or by both such fine and imprisonment; and in any
case where such employer is a corporation, the president,
secretary, and treasurer thereof shall be also severally liable to
such fine or imprisonment as herein provided for the failure of
such corporation to secure the payment of compensation; and such
president, secretary, and treasurer shall be severally personally
liable, jointly with such corporation, for any compensation or
other benefit which may accrue under the said chapter in respect to
any injury which may occur to any employee of such corporation
while it shall so fail to secure the payment of compensation as
required by section 932 of this title.
(b) Avoiding payment of compensation
Any employer who knowingly transfers, sells, encumbers, assigns,
or in any manner disposes of, conceals, secretes, or destroys any
property belonging to such employer, after one of his employees has
been injured within the purview of this chapter, and with intent to
avoid the payment of compensation under this chapter to such
employee or his dependents, shall be guilty of a misdemeanor and,
upon conviction thereof, shall be punished by a fine of not more
than $10,000, or by imprisonment for not more than one year, or by
both such fine and imprisonment; and in any case where such
employer is a corporation, the president, secretary, and treasurer
thereof shall be also severally liable to such penalty of
imprisonment as well as jointly liable with such corporation for
such fine.
(c) Effect on other liability of employer
This section shall not affect any other liability of the employer
under this chapter.
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