42 U.S. Code § 1383a - Penalties for fraud

(a) In general
Whoever—
(1) knowingly and willfully makes or causes to be made any false statement or representation of a material fact in any application for any benefit under this subchapter,
(2) at any time knowingly and willfully makes or causes to be made any false statement or representation of a material fact for use in determining rights to any such benefit,
(3) having knowledge of the occurrence of any event affecting
(A) his initial or continued right to any such benefit, or
(B) the initial or continued right to any such benefit of any other individual in whose behalf he has applied for or is receiving such benefit, conceals or fails to disclose such event with an intent fraudulently to secure such benefit either in a greater amount or quantity than is due or when no such benefit is authorized, or
(4) having made application to receive any such benefit for the use and benefit of another and having received it, knowingly and willfully converts such benefit or any part thereof to a use other than for the use and benefit of such other person,
shall be fined under title 18, imprisoned not more than 5 years, or both.
(b) Restitution
(1) Any Federal court, when sentencing a defendant convicted of an offense under subsection (a) of this section, may order, in addition to or in lieu of any other penalty authorized by law, that the defendant make restitution to the Commissioner of Social Security, in any case in which such offense results in—
(A) the Commissioner of Social Security making a benefit payment that should not have been made, or
(B) an individual suffering a financial loss due to the defendant’s violation of subsection (a) of this section in his or her capacity as the individual’s representative payee appointed pursuant to section 1383 (a)(2) of this title.
(2) Sections 3612, 3663, and 3664 of title 18 shall apply with respect to the issuance and enforcement of orders of restitution under this subsection. In so applying such sections, the Commissioner of Social Security shall be considered the victim.
(3) If the court does not order restitution, or orders only partial restitution, under this subsection, the court shall state on the record the reasons therefor.
(4)
(A) Except as provided in subparagraph (B), funds paid to the Commissioner of Social Security as restitution pursuant to a court order shall be deposited as miscellaneous receipts in the general fund of the Treasury.
(B) In the case of funds paid to the Commissioner of Social Security pursuant to paragraph (1)(B), the Commissioner of Social Security shall certify for payment to the individual described in such paragraph an amount equal to the lesser of the amount of the funds so paid or the individual’s outstanding financial loss as described in such paragraph, except that such amount may be reduced by any overpayment of benefits owed under this subchapter, subchapter II of this chapter, or subchapter VIII of this chapter by the individual.
(c) Prohibition on certification as representative payee
Any person or entity convicted of a violation of subsection (a) of this section or of section 408 of this title may not be certified as a representative payee under section 1383 (a)(2) of this title.

Source

(Aug. 14, 1935, ch. 531, title XVI, § 1632, as added Pub. L. 92–603, title III, § 301,Oct. 30, 1972, 86 Stat. 1478; amended Pub. L. 98–460, § 16(c)(1),Oct. 9, 1984, 98 Stat. 1810; Pub. L. 103–296, title II, § 206(c)(1), (2),Aug. 15, 1994, 108 Stat. 1513; Pub. L. 108–203, title II, § 209(c),Mar. 2, 2004, 118 Stat. 515.)
Amendments

2004—Subsec. (b). Pub. L. 108–203, § 209(c)(2), added subsec. (b). Former subsec. (b) redesignated (c).
Subsec. (c). Pub. L. 108–203, § 209(c)(1), (3), redesignatedsubsec. (b) as (c), struck out “(2)” before “Any person”, and struck out par (1) which read as follows: “If a person or entity violates subsection (a) of this section in the person’s or entity’s role as, or in applying to become, a representative payee under section 1383 (a)(2) of this title on behalf of another individual (other than the person’s eligible spouse), and the violation includes a willful misuse of funds by the person or entity, the court may also require that full or partial restitution of funds be made to such other individual.”
1994—Subsec. (a). Pub. L. 103–296, § 206(c)(1), inserted closing provisions and struck out former closing provisions which read as follows: “shall be guilty of a misdemeanor and upon conviction thereof shall be fined not more than $1,000 or imprisoned for not more than one year, or both.”
Subsec. (b). Pub. L. 103–296, § 206(c)(2), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows:
“(b)(1) Any person or other entity who is convicted of a violation of any of the provisions of paragraphs (1) through (4) of subsection (a) of this section, if such violation is committed by such person or entity in his role as, or in applying to become, a payee under section 1383 (a)(2) of this title on behalf of another individual (other than such person’s eligible spouse), in lieu of the penalty set forth in subsection (a) of this section—
“(A) upon his first such conviction, shall be guilty of a misdemeanor and shall be fined not more than $5,000 or imprisoned for not more than one year, or both; and
“(B) upon his second or any subsequent such conviction, shall be guilty of a felony and shall be fined not more than $25,000 or imprisoned for not more than five years, or both.
“(2) In any case in which the court determines that a violation described in paragraph (1) includes a willful misuse of funds by such person or entity, the court may also require that full or partial restitution of such funds be made to the individual for whom such person or entity was the certified payee.
“(3) Any person or entity convicted of a felony under this section or under section 408 of this title may not be certified as a payee under section 1383 (a)(2) of this title.”
1984—Pub. L. 98–460designated existing provisions as subsec. (a) and added subsec. (b).
Effective Date of 2004 Amendment

Amendment by Pub. L. 108–203applicable with respect to violations occurring on or after Mar. 2, 2004, see section 209(d) ofPub. L. 108–203, set out as a note under section 408 of this title.
Effective Date of 1994 Amendment

Pub. L. 103–296, title II, § 206(c)(3),Aug. 15, 1994, 108 Stat. 1514, provided that: “The amendments made by this subsection [amending this section] shall apply to conduct occurring on or after October 1, 1994.”
Effective Date of 1984 Amendment

Amendment by Pub. L. 98–460effective Oct. 9, 1984, and applicable with respect to violations occurring on or after such date, see section 16(d) ofPub. L. 98–460, set out as a note under section 405 of this title.
Effective Date

Pub. L. 92–603, title III, § 301,Oct. 30, 1972, 86 Stat. 1465, provided that this section is effective Jan. 1, 1974.
Application to Northern Mariana Islands

For applicability of this section to the Northern Mariana Islands, see section 502(a)(1) of the Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States of America and Proc. No. 4534, Oct. 24, 1977, 42 F.R. 6593, set out as notes under section 1801 of Title 48, Territories and Insular Possessions.
Puerto Rico, Guam, and Virgin Islands

Enactment of provisions of Pub. L. 92–603, eff. Jan. 1, 1974, not applicable to Puerto Rico, Guam, and the Virgin Islands, see section 303(b) ofPub. L. 92–603, set out as a note under section 301 of this title.

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42 USCDescription of ChangeSession YearPublic LawStatutes at Large

 

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