(a) No person may make, or cause to be made, any of the following:

(1) A fraudulent or intentionally false statement in any application or any amendment thereto, or any other report or test result required by this part.

(2) A fraudulent or intentionally false statement in or a known omission from any record or report that is kept, made, or used to show compliance with this part, or to exercise any privileges under this chapter.

(3) Any reproduction or alteration, for fraudulent purpose, of any report, record, or test result required under this part.

(b) The commission by any person of any act prohibited under paragraph (a) of this section is a basis for any one or any combination of the following:

(1) A civil penalty.

(2) Suspension or revocation of any certificate held by that person that was issued under this chapter.

(3) The removal of FSTD qualification and approval for use in a training program.

(c) The following may serve as a basis for removal of qualification of an FSTD including the withdrawal of approval for use of an FSTD; or denying an application for a qualification:

(1) An incorrect statement, upon which the FAA relied or could have relied, made in support of an application for a qualification or a request for approval for use.

(2) An incorrect entry, upon which the FAA relied or could have relied, made in any logbook, record, or report that is kept, made, or used to show compliance with any requirement for an FSTD qualification or an approval for use.