N.Y. TAX Law § 39-A

§ 39-a. Penalties for fraud in the START-UP NY program. If the\ncommissioner of economic development on his or her own initiative or on\nthe recommendation of a sponsoring campus, university or college finally\ndetermines that any such business participating in the START-UP NY\nprogram authorized under article twenty-one of the economic development\nlaw has acted fraudulently in connection with its participation in such\nprogram, such business:\n (a) shall be immediately terminated from such program;\n (b) shall be subject to applicable criminal penalties, including but\nnot limited to the felony crime of offering a false instrument for\nfiling in the first degree pursuant to section 175.35 of the penal law;\nand\n (c) shall be required in that year to add back to tax the total value\nof the tax benefits described in section thirty-nine of this article\nthat such business has received and that the employees of such business\nhave received up to the date of such finding. The amount required to be\nadded back shall be reported on such business's corporate franchise\nreport if such business is taxed as a corporation or on the corporate\nfranchise tax reports or personal income tax returns of the owners of\nsuch business if such business is taxed as a sole proprietorship,\npartnership or New York S corporation.\n