Title 15 — Commerce and TradeRelease 119-73

§158 False or fraudulent statements prohibited; penalties

Title 15 › Chapter CHAPTER 4— - CHINA TRADE › § 158

Last updated Apr 6, 2026|Official source

Summary

Do not make or publish any statement, ad, or other communication about a China Trade Act corporation’s stocks, bonds, other securities, or its finances or business deals if you know or have reason to believe an important fact in it is false. This rule covers stockholders, directors, officers, employees, and agents. If the company’s authorized capital stock is not fully paid, you must not state the authorized amount without also giving the actual paid‑in amount, and that paid‑in figure cannot be higher than the real amount. If convicted, a person can be fined up to $5,000, imprisoned up to ten years, or both.

Full Legal Text

Title 15, §158

Commerce and Trade — Source: USLM XML via OLRC

No stockholder, director, officer, employee, or agent of a China Trade Act corporation shall make, issue, or publish any statement, written or oral, or advertisement in any form, as to the value or as to the facts affecting the value of stocks, bonds, or other evidences of debt, or as to the financial condition or transactions, or facts affecting such condition or transactions, of such corporation if it has issued or is to issue stocks, bonds, or other evidences of debt, whenever he knows or has reason to believe that any material representation in such statement or advertisement is false. No stockholder, director, officer, employee, or agent of a China Trade Act corporation shall, if all the authorized capital stock thereof has not been paid in, make, issue, or publish any written statement or advertisement, in any form, stating the amount of the authorized capital stock without also stating as the amount actually paid in, a sum not greater than the amount paid in. Any person violating any provisions of this section shall, upon conviction thereof, be fined not more than $5,000 or imprisoned not more than ten years, or both.

Reference

Citations & Metadata

Citation

15 U.S.C. § 158

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73