TITLE 42 - THE PUBLIC HEALTH AND WELFARE
CHAPTER 7 - SOCIAL SECURITY
SUBCHAPTER XVI - SUPPLEMENTAL SECURITY INCOME FOR AGED, BLIND, AND
DISABLED
Part B - Procedural and General Provisions
HEAD
Sec. 1383a. Penalties for fraud
STATUTE
(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, Sec. 1632, as added Pub. L. 92-
603, title III, Sec. 301, Oct. 30, 1972, 86 Stat. 1478; amended
Pub. L. 98-460, Sec. 16(c)(1), Oct. 9, 1984, 98 Stat. 1810; Pub. L.
103-296, title II, Sec. 206(c)(1), (2), Aug. 15, 1994, 108 Stat.
1513; Pub. L. 108-203, title II, Sec. 209(c), Mar. 2, 2004, 118
Stat. 515.)
AMENDMENTS
2004 - Subsec. (b). Pub. L. 108-203, Sec. 209(c)(2), added
subsec. (b). Former subsec. (b) redesignated (c).
Subsec. (c). Pub. L. 108-203, Sec. 209(c)(1), (3), redesignated
subsec. (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, Sec. 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, Sec. 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. 98-460 designated existing provisions as subsec.
(a) and added subsec. (b).
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108-203 applicable with respect to
violations occurring on or after Mar. 2, 2004, see section 209(d)
of Pub. L. 108-203, set out as a note under section 408 of this
title.
EFFECTIVE DATE OF 1994 AMENDMENT
Section 206(c)(3) of Pub. L. 103-296 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. 98-460 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.
EFFECTIVE DATE
Section 301 of Pub. L. 92-603 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) of Pub. L. 92-603, set out as a note under section
301 of this title.
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