; and (B) for a parent with a previous expenditure in such an amount that was determined to be fraud by the finance authority, the child safety account shall be frozen and the parent shall not be eligible for any child safety accounts in the District of Columbia on or after such determination; and (2) in a case in which the amount of such expenditure may lead to a felony conviction under District of Columbia law, the child safety account involved shall be frozen, the case shall be remanded to the Attorney General of the District of Columbia, and the parent shall not be eligible for any child safety accounts in the District of Columbia on or after such determination. (e) Safety incident or falsifying residency fraud In a case where the parent is found to have falsified the safety incident, or falsified residency in the District of Columbia, leading to creation of the account and the amount of expenditures resulting from the falsified account may lead to a conviction of misdemeanor fraud under District of Columbia law, the child safety account shall be frozen, and the parent shall not be eligible for any child safety accounts in the District of Columbia on or after such determination, and the Attorney General of the District of Columbia shall be notified. 7. Scholarship granting organizations (a) Applications To be authorized as a scholarship granting organization to accept donations and pay out scholarships to students under this section, an organization shall submit an application to the finance authority at such time, in such manner, and containing such information as the authority may require, which shall include an assurance that the organization— (1) is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986