42 U.S.C. § 408 : US Code - Section 408: Penalties

Search 42 U.S.C. § 408 : US Code - Section 408: Penalties

(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.