All Agencies, Latest Month All Agencies, Current FY Geographic Distribution
of Convictions for
All Agencies, FY 2014
11 Prosecutions
in June 2014
185 Prosecutions
in Fiscal Year 2014
12 Convictions
in June 2014
117 Convictions
in Fiscal Year 2014

CITE

    42 USC Sec. 408                                             01/08/2008

EXPCITE

    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 7 - SOCIAL SECURITY
    SUBCHAPTER II - FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE
                     BENEFITS

HEAD

    Sec. 408. Penalties

STATUTE

    (a) In general
      Whoever -
        (1) for the purpose of causing an increase in any payment
      authorized to be made under this subchapter, or for the purpose
      of causing any payment to be made where no payment is authorized
      under this subchapter, shall make or cause to be made any false
      statement or representation (including any false statement or
      representation in connection with any matter arising under
      subchapter E of chapter 1, or subchapter A or E of chapter 9 of
      the Internal Revenue Code of 1939, or chapter 2 or 21 or subtitle
      F of the Internal Revenue Code of 1954) as to -
          (A) whether wages were paid or received for employment (as
        said terms are defined in this subchapter and the Internal
        Revenue Code), or the amount of wages or the period during
        which paid or the person to whom paid; or
          (B) whether net earnings from self-employment (as such term
        is defined in this subchapter and in the Internal Revenue Code)
        were derived, or as to the amount of such net earnings or the
        period during which or the person by whom derived; or
          (C) whether a person entitled to benefits under this
        subchapter had earnings in or for a particular period (as
        determined under section 403(f) of this title for purposes of
        deductions from benefits), or as to the amount thereof; or
        (2) makes or causes to be made any false statement or
      representation of a material fact in any application for any
      payment or for a disability determination under this subchapter;
      or
        (3) at any time makes or causes to be made any false statement
      or representation of a material fact for use in determining
      rights to payment under this subchapter; or
        (4) having knowledge of the occurrence of any event affecting
      (1) his initial or continued right to any payment under this
      subchapter, or (2) the initial or continued right to any payment
      of any other individual in whose behalf he has applied for or is
      receiving such payment, conceals or fails to disclose such event
      with an intent fraudulently to secure payment either in a greater
      amount than is due or when no payment is authorized; or
        (5) having made application to receive payment under this
      subchapter for the use and benefit of another and having received
      such a payment, knowingly and willfully converts such a payment,
      or any part thereof, to a use other than for the use and benefit
      of such other person; or
        (6) willfully, knowingly, and with intent to deceive the
      Commissioner of Social Security as to his true identity (or the
      true identity of any other person) furnishes or causes to be
      furnished false information to the Commissioner of Social
      Security with respect to any information required by the
      Commissioner of Social Security in connection with the
      establishment and maintenance of the records provided for in
      section 405(c)(2) of this title; or
        (7) for the purpose of causing an increase in any payment
      authorized under this subchapter (or any other program financed
      in whole or in part from Federal funds), or for the purpose of
      causing a payment under this subchapter (or any such other
      program) to be made when no payment is authorized thereunder, or
      for the purpose of obtaining (for himself or any other person)
      any payment or any other benefit to which he (or such other
      person) is not entitled, or for the purpose of obtaining anything
      of value from any person, or for any other purpose -
          (A) willfully, knowingly, and with intent to deceive, uses a
        social security account number, assigned by the Commissioner of
        Social Security (in the exercise of the Commissioner's
        authority under section 405(c)(2) of this title to establish
        and maintain records) on the basis of false information
        furnished to the Commissioner of Social Security by him or by
        any other person; or
          (B) with intent to deceive, falsely represents a number to be
        the social security account number assigned by the Commissioner
        of Social Security to him or to another person, when in fact
        such number is not the social security account number assigned
        by the Commissioner of Social Security to him or to such other
        person; or
          (C) knowingly alters a social security card issued by the
        Commissioner of Social Security, buys or sells a card that is,
        or purports to be, a card so issued, counterfeits a social
        security card, or possesses a social security card or
        counterfeit social security card with intent to sell or alter
        it; or
        (8) discloses, uses, or compels the disclosure of the social
      security number of any person in violation of the laws of the
      United States;
    shall be guilty of a felony and upon conviction thereof shall be
    fined under title 18 or imprisoned for not more than five 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 victims of such offense
    specified in paragraph (4).
      (2) Sections 3612, 3663, and 3664 of title 18 shall apply with
    respect to the issuance and enforcement of orders of restitution to
    victims of such offense under this subsection.
      (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) For purposes of paragraphs (1) and (2), the victims of an
    offense under subsection (a) of this section are the following:
        (A) Any individual who suffers a financial loss as a result of
      the defendant's violation of subsection (a) of this section.
        (B) The Commissioner of Social Security, to the extent that the
      defendant's violation of subsection (a) of this section results
      in -
          (i) the Commissioner of Social Security making a benefit
        payment that should not have been made; or
          (ii) 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 405(j) of this title.
      (5)(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 in the Federal Old-Age and Survivors
    Insurance Trust Fund, or the Federal Disability Insurance Trust
    Fund, as appropriate.
      (B) In the case of funds paid to the Commissioner of Social
    Security pursuant to paragraph (4)(B)(ii), 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, except that such amount may be reduced by the
    amount of any overpayments of benefits owed under this subchapter,
    subchapter VIII of this chapter, or subchapter XVI of this chapter
    by the individual.
    (c) Violations by certified payees
      Any person or other entity who is convicted of a violation of any
    of the provisions of this section, if such violation is committed
    by such person or entity in his role as, or in applying to become,
    a certified payee under section 405(j) of this title on behalf of
    another individual (other than such person's spouse), upon his
    second or any subsequent such conviction shall, in lieu of the
    penalty set forth in the preceding provisions of this section, be
    guilty of a felony and shall be fined under title 18 or imprisoned
    for not more than five years, or both.
    (d) Effect upon certification as payee; definitions
      Any individual or entity convicted of a felony under this section
    or under section 1383a(b) (!1) of this title may not be certified
    as a payee under section 405(j) of this title. For the purpose of
    subsection (a)(7) of this section, the terms "social security
    number" and "social security account number" mean such numbers as
    are assigned by the Commissioner of Social Security under section
    405(c)(2) of this title whether or not, in actual use, such numbers
    are called social security numbers.
    (e) Application of subsection (a)(6) and (7) to certain aliens
      (1) Except as provided in paragraph (2), an alien -
        (A) whose status is adjusted to that of lawful temporary
      resident under section 1160 or 1255a of title 8 or under section
      902 of the Foreign Relations Authorization Act, Fiscal Years 1988
      and 1989,
        (B) whose status is adjusted to that of permanent resident -
          (i) under section 202 of the Immigration Reform and Control
        Act of 1986, or
          (ii) pursuant to section 1259 of title 8, or
        (C) who is granted special immigrant status under section
      1101(a)(27)(I) of title 8,
    shall not be subject to prosecution for any alleged conduct
    described in paragraph (6) or (7) of subsection (a) of this section
    if such conduct is alleged to have occurred prior to 60 days after
    November 5, 1990.
      (2) Paragraph (1) shall not apply with respect to conduct
    (described in subsection (a)(7)(C) of this section) consisting of -
        (A) selling a card that is, or purports to be, a social
      security card issued by the Commissioner of Social Security,
        (B) possessing a social security card with intent to sell it,
      or
        (C) counterfeiting a social security card with intent to sell
      it.
      (3) Paragraph (1) shall not apply with respect to any criminal
    conduct involving both the conduct described in subsection (a)(7)
    of this section to which paragraph (1) applies and any other
    criminal conduct if such other conduct would be criminal conduct if
    the conduct described in subsection (a)(7) of this section were not
    committed.

SOURCE

    (Aug. 14, 1935, ch. 531, title II, Sec. 208, 49 Stat. 625; Aug. 10,
    1939, ch. 666, title II, Sec. 201, 53 Stat. 1362, 1372; Aug. 28,
    1950, ch. 809, title I, Sec. 109(c), 64 Stat. 523; Sept. 1, 1954,
    ch. 1206, title I, Sec. 111(b), 68 Stat. 1085; Pub. L. 85-840,
    title III, Sec. 310, Aug. 28, 1958, 72 Stat. 1034; Pub. L. 86-778,
    title II, Sec. 211(m), Sept. 13, 1960, 74 Stat. 958; Pub. L. 92-
    603, title I, Sec. 130(a), Oct. 30, 1972, 86 Stat. 1359; Pub. L.
    94-455, title XII, Sec. 1211(a), (d), Oct. 4, 1976, 90 Stat. 1711,
    1712; Pub. L. 97-123, Sec. 4(a), (b), Dec. 29, 1981, 95 Stat. 1663,
    1664; Pub. L. 98-369, div. B, title VI, Sec. 2663(a)(5), July 18,
    1984, 98 Stat. 1162; Pub. L. 98-460, Sec. 16(c)(2), Oct. 9, 1984,
    98 Stat. 1811; Pub. L. 100-690, title VII, Sec. 7088, Nov. 18,
    1988, 102 Stat. 4409; Pub. L. 101-508, title V, Secs. 5121,
    5130(a)(1), Nov. 5, 1990, 104 Stat. 1388-283, 1388-289; Pub. L. 103-
    296, title I, Sec. 107(a)(4), title III, Sec. 321(a)(12), Aug. 15,
    1994, 108 Stat. 1478, 1536; Pub. L. 106-553, Sec. 1(a)(2) [title
    VI, Sec. 635(c)(2)(1), (2)], Dec. 21, 2000, 114 Stat. 2762, 2762A-
    117; Pub. L. 106-554, Sec. 1(a)(4) [div. A, Sec. 213(a)(6)], Dec.
    21, 2000, 114 Stat. 2763, 2763A-180; Pub. L. 108-203, title II,
    Sec. 209(a), Mar. 2, 2004, 118 Stat. 513.)

REFERENCES IN TEXT

      Subchapter E of chapter 1 and subchapters A and E of chapter 9 of
    the Internal Revenue Code of 1939, referred to in subsec. (a)(1),
    were comprised of sections 480-482, 1400-1432, and 1630-1636,
    respectively, and were repealed (subject to certain exceptions) by
    section 7851(a)(1)(A), (3) of Title 26, Internal Revenue Code of
    1954 (act Aug. 16, 1954, ch. 736, 68A Stat. 3). The I.R.C. 1954 was
    redesignated I.R.C. 1986 by Pub. L. 99-514, Sec. 2, Oct. 22, 1986,
    100 Stat. 2095.
      For provision deeming a reference in other laws to a provision of
    the 1939 Code as a reference to the corresponding provisions of the
    1986 Code, see section 7852(b) of the 1986 Code. For table of
    comparisons of the 1939 Code to the 1986 Code, see table preceding
    section 1 of Title 26, Internal Revenue Code. The Internal Revenue
    Code of 1986 is classified generally to Title 26.
      Chapters 2 and 21 and subtitle F of the Internal Revenue Code of
    1954, referred to in subsec. (a)(1), were redesignated chapters 2
    and 21 and subtitle F of the Internal Revenue Code of 1986, and are
    classified to sections 1401 et seq., 3101 et seq., and 6001 et
    seq., respectively, of Title 26.
      Section 1383a(b) of this title, referred to in subsec. (d), was
    redesignated section 1383a(c) of this title and amended by Pub. L.
    108-203, title II, Sec. 209(c), Mar. 2, 2004, 118 Stat. 515.
      Section 902 of the Foreign Relations Authorization Act, Fiscal
    Years 1988 and 1989, referred to in subsec. (e)(1)(A), is section
    902 of Pub. L. 100-204, which is set out as a note under section
    1255a of Title 8, Aliens and Nationality.
      Section 202 of the Immigration Reform and Control Act of 1986,
    referred to in subsec. (e)(1)(B)(i), is section 202 of Pub. L. 99-
    603, which is set out as a note under section 1255a of Title 8.

AMENDMENTS

      2004 - Subsec. (b). Pub. L. 108-203, Sec. 209(a)(2), added
    subsec. (b). Former subsec. (b) redesignated (c).
      Subsec. (c). Pub. L. 108-203, Sec. 209(a)(1), (3), redesignated
    subsec. (b) as (c) and struck out at end: "In the case of any
    violation described in the preceding sentence, including a first
    such violation, if the court determines that such violation
    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." Former subsec. (c) redesignated (d).
      Subsecs. (d), (e). Pub. L. 108-203, Sec. 209(a)(1), redesignated
    subsecs. (c) and (d) as (d) and (e), respectively.
      2000 - Subsec. (a)(8) to (10). Pub. L. 106-553, which inserted
    "or" at end of par. (8) and added pars. (9) and (10), was repealed
    by Pub. L. 106-554, effective as if included in Pub. L. 106-553 on
    Dec. 21, 2000. Pars. (9) and (10) read as follows:
      "(9) except as provided in section 1320b-23(d) of this title,
    knowingly and willfully displays or sells to the general public (as
    defined in section 1320b-23(g) of this title) any individual's
    social security number, or any identifiable derivative of such
    number, without the affirmatively expressed consent (as defined in
    section 1320b-23(c) of this title), electronically or in writing,
    of such individual; or
      "(10) obtains any individual's social security number, or any
    identifiable derivative of such number, for purposes of locating or
    identifying an individual with the intent to physically injure,
    harm, or use the identity of the individual for illegal purposes;".
      1994 - Subsec. (a)(6), (7). Pub. L. 103-296, Sec. 107(a)(4),
    substituted "Commissioner of Social Security" for "Secretary"
    wherever appearing and "the Commissioner's authority" for "his
    authority" in par. (7)(A).
      Subsec. (c). Pub. L. 103-296, Sec. 321(a)(12), substituted
    "subsection (a)(7)" for "subsection (g)".
      Pub. L. 103-296, Sec. 107(a)(4), substituted "Commissioner of
    Social Security" for "Secretary".
      Subsec. (d)(2)(A). Pub. L. 103-296, Sec. 107(a)(4), substituted
    "Commissioner of Social Security" for "Secretary".
      1990 - Pub. L. 101-508, Sec. 5121, inserted "(a)" before "Whoever
    - ", redesignated former subsecs. (a) to (h) as pars. (1) to (8),
    respectively, of subsec. (a), in pars. (1) and (7) redesignated
    former pars. (1) to (3) as subpars. (A) to (C), respectively,
    inserted "(b)" before "Any person or other entity who is
    convicted", inserted "(c)" before "Any individual or entity
    convicted of a felony", and added subsec. (d).
      Pub. L. 101-508, Sec. 5130(a)(1), in the last undesignated
    paragraph substituted "section 405(c)(2) of this title" for
    "section 605(c)(2) of this title".
      1988 - Pub. L. 100-690 substituted "under title 18" for "not more
    than $5,000" in first undesignated par., substituted "under title
    18" for "not more than $25,000" in second undesignated par., and
    inserted provisions at end defining for purposes of subsec. (g)
    "social security number" and "social security account number".
      1984 - Pub. L. 98-460 inserted provisions imposing a penalty of
    $25,000 or imprisonment for not more than five years, or both, on
    any person or other entity convicted for a second or subsequent
    violation of this section, if such violation is committed by such
    person or entity in his role as, or in applying to become, a
    certified payee under section 405(j) of this title, and also
    granting the court discretion, in any case, including a first
    offense, involving a willful misuse of funds, to require full or
    partial restitution, and prohibiting the certification of any
    individual or entity convicted of a felony under this section or
    under section 1383a(b) of this title.
      Subsecs. (f) to (h). Pub. L. 98-369 realigned margins of subsecs.
    (f) to (h).
      1981 - Pub. L. 97-123 substituted provisions making violation of
    section a felony for provisions making it a misdemeanor, increased
    the punishment from one to five years and penalty from $1,000 to
    $5,000, and in subsec. (g), in opening paragraph, substituted "or
    for the purpose of obtaining anything of value from any person, or
    for any other purpose" for "or for any other purpose", and added
    par. (3).
      1976 - Subsec. (g). Pub. L. 94-455, Sec. 1211(a), inserted ", or
    for any other purpose" after "entitled" in provisions preceding cl.
    (1).
      Subsec. (h). Pub. L. 94-455, Sec. 1211(d)(1), added subsec. (h).
      1972 - Subsecs. (f), (g). Pub. L. 92-603 added subsecs. (f) and
    (g).
      1960 - Subsec. (a)(3). Pub. L. 86-778 substituted "section 403(f)
    of this title" for "section 403(e) of this title".
      1958 - Pub. L. 85-840 amended section generally, by, among other
    changes, inserting references to the Internal Revenue Code of 1954,
    and making penalty provisions applicable to cases (1) where false
    statements or representations as to whether wages were paid or
    received for employment, or whether net earnings from self-
    employment were derived, or whether a person entitled to benefits
    under this subchapter had earnings in or for a particular period,
    or as to the amount thereof, are made for the purpose of obtaining
    or increasing benefits; (2) where false statements or
    representations are made in any application for disability
    determination; (3) where a person intentionally conceals or fails
    to disclose knowledge of any event affecting his or another's
    initial or continued right to payment, and (4) where a person
    converts a payment that he received for the use and benefit of
    another.
      1954 - Act Sept. 1, 1954, made it clear that the penalty
    provisions of the section extend to cases of false statements or
    representations as to the amount of net earnings from self-
    employment derived or the period during which derived.
      1950 - Act Aug. 28, 1950, substituted "subchapter E of chapter 1,
    or subchapter A or E of chapter 9 of the Internal Revenue Code of
    1939" for "the Federal Insurance Contributions Act".
      1939 - Act Aug. 10, 1939, amended section generally,
    incorporating provisions of section 409 of this title.
                     EFFECTIVE DATE OF 2004 AMENDMENT
      Pub. L. 108-203, title II, Sec. 209(d), Mar. 2, 2004, 118 Stat.
    516, provided that: "The amendments made by subsections (a), (b),
    and (c) [amending this section and sections 1011 and 1383a of this
    title] shall apply with respect to violations occurring on or after
    the date of enactment of this Act [Mar. 2, 2004]."
                     EFFECTIVE DATE OF 2000 AMENDMENT
      Pub. L. 106-554, Sec. 1(a)(4) [div. A, Sec. 213(b)], Dec. 21,
    2000, 114 Stat. 2763, 2763A-180, provided that: "The amendments
    made by this section [amending this section, section 10601 of this
    title, and section 2709 of Title 22, Foreign Relations and
    Intercourse, repealing section 1320b-23 of this title, amending
    provisions set out as notes under sections 4001 and 4013 of Title
    18, Crimes and Criminal Procedure, and section 524 of Title 28,
    Judiciary and Judicial Procedure, and repealing provisions set out
    as notes under this section and sections 1305 and 1320b-23 of this
    title] shall take effect as if included in H.R. 4942 of the 106th
    Congress [Pub. L. 106-553] on the date of its enactment [Dec. 21,
    2000]."
      Pub. L. 106-553, Sec. 1(a)(2) [title VI, Sec. 635(c)(2)(3)], Dec.
    21, 2000, 114 Stat. 2762, 2762A-117, which provided that the
    amendments made by Sec. 1(a)(2) [title VI, Sec. 635(c)] of Pub. L.
    106-553, enacting section 1320b-23 of this title and amending this
    section, would apply with respect to violations occurring on and
    after the date that is 2 years after Dec. 21, 2000, was repealed by
    Pub. L. 106-554, Sec. 1(a)(4) [div. A, Sec. 213(a)(6)], Dec. 21,
    2000, 114 Stat. 2763, 2763A-180, see above.
                     EFFECTIVE DATE OF 1994 AMENDMENT
      Amendment by section 107(a)(4) of Pub. L. 103-296 effective Mar.
    31, 1995, see section 110(a) of Pub. L. 103-296, set out as a note
    under section 401 of this title.
                     EFFECTIVE DATE OF 1990 AMENDMENT
      Amendment by section 5130(a)(1) of Pub. L. 101-508 effective as
    if included in the enactment of Pub. L. 100-690, Sec. 7088, see
    section 5130(b) of Pub. L. 101-508, set out as a note under section
    1402 of Title 26, Internal Revenue Code.
                     EFFECTIVE DATE OF 1984 AMENDMENTS
      Amendment by Pub. L. 98-460 effective Oct. 9, 1984, and
    applicable with respect to violations occurring on or after such
    date, see section 16(d) of Pub. L. 98-460, set out as a note under
    section 405 of this title.
      Amendment by Pub. L. 98-369 effective July 18, 1984, but not to
    be construed as changing or affecting any right, liability, status,
    or interpretation which existed (under the provisions of law
    involved) before that date, see section 2664(b) of Pub. L. 98-369,
    set out as a note under section 401 of this title.
                     EFFECTIVE DATE OF 1981 AMENDMENT
      Section 4(c) of Pub. L. 97-123 provided that: "The amendments
    made by subsections (a) and (b) [amending this section] shall be
    effective with respect to violations committed after the date of
    the enactment of this Act [Dec. 29, 1981]."
                     EFFECTIVE DATE OF 1972 AMENDMENT
      Section 130(b) of Pub. L. 92-603 provided that: "The amendments
    made by subsection (a) [amending this section] shall apply with
    respect to information furnished to the Secretary after the date of
    the enactment of this Act [Oct. 30, 1972]."
                     EFFECTIVE DATE OF 1960 AMENDMENT
      Amendment by Pub. L. 86-778 effective in the manner provided in
    section 211(p), (q) of Pub. L. 86-778, section 211(s) of Pub. L. 86-
    778, set out as a note under section 403 of this title.
                     EFFECTIVE DATE OF 1939 AMENDMENT
      Section 201 of act Aug. 10, 1939, provided that the amendment
    made by that section is effective Jan. 1, 1940.

FOOTNOTE

    (!1) See References in Text note below.
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