§ 6-3-608 — Fraudulent use of materials; fraudulent obtaining of money by contractor; penalties

(a) A contractor or subcontractor who purchases materials
on credit and represents that they will be used in a designated
building or improvement and who knowingly and with intent to
defraud the seller uses the materials or allows them to be used
in a building or improvement other than the one designated is
guilty of a misdemeanor punishable by imprisonment for not more
than six (6) months, a fine of not more than seven hundred fifty
dollars ($750.00), or both.
(b) Any contractor who receives money from an owner and
provides the owner with an affidavit that all materialmen and
subcontractors have been paid when he knows all materialmen and
subcontractors have not been paid is guilty of a felony and
shall be sentenced to not more than five (5) years in the
penitentiary, fined not more than ten thousand dollars
($10,000.00), or both. Lien waivers signed by all materialmen,
subcontractors and laborers are prima facie evidence that monies
received from the owner were applied toward construction costs
by the contractor.