Misrepresentation and scheme or device.

(a) A participant who is determined to have erroneously represented any fact affecting a program determination made in accordance with this part, will not be entitled to cost-share agreement payments and must refund to NRCS all payments and pay liquidated damages, plus interest, as determined by NRCS. (b) A participant will refund to NRCS all payments, plus interest, as determined by NRCS, with respect to all NRCS cost-share agreements to which they are a party if they are determined to have knowingly: (1) Adopted any scheme or device that tends to defeat the purpose of the program; (2) Made any fraudulent representation; or (3) Misrepresented any fact affecting a program determination. (c) Other NRCS cost-share agreements where this person is a participant may be terminated.