(1) It shall be unlawful for any board of improvement, or any member thereof, in any city or town in this state to be interested, either directly or indirectly, in any contract made by the board for, or on behalf of, any improvement district.
(2) Any person violating the provisions of this section commits a felony and shall be: Fined in any sum not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000); and
(3) Imprisoned in the state penitentiary not less than one (1) year nor more than ten (10) years.