Relating to filing of a fraudulent financing statement.

HB 5229 amends West Virginia law to address fraudulent financing statements that harass or defraud debtors. It prohibits filing false records under specific circumstances (e.g., unauthorized filings, material false statements) and imposes penalties: misdemeanor fines ($100-$1,000) or jail time (up to 12 months) for first offenses, and felony penalties (1-5 years in prison) for repeat violations. Debtors who believe they were harmed can file an affidavit with the Secretary of State, triggering an investigation; the Secretary may then terminate fraudulent filings and require additional documentation. Affected parties include debtors targeted by false filings, secured creditors (lenders), and the Secretary of State’s office, which gains authority to investigate and enforce penalties. Civil liability for victims includes up to $10,000 in damages, attorney fees, and punitive damages.