§645 — Title 15 Commerce and Trade | U.S. Code

Summary

You will be punished for lying or cheating to get loans, influence the Administration, or get money or property under this law. If you knowingly lie or overvalue a security to get a loan or change its terms, you can be fined up to $5,000, jailed up to 2 years, or both. If you work with the Administration and steal, misuse funds or property, make false records, issue unauthorized orders or debt, take part in fraud, or give secret advance information and then trade, you can be fined up to $10,000, jailed up to 5 years, or both. If you hide, remove, or take property that was pledged to the Administration to defraud it, you face up to $5,000 fine or 5 years in jail; if the property is worth $100 or less, the penalty is up to $1,000 or 1 year in jail. If you lie about being a qualifying small business (including HUBZone, veteran-owned, service-disabled veteran-owned, women-owned, or socially and economically disadvantaged) to get certain prime contracts or subcontracts, you face much harsher penalties: up to $500,000 fine or 10 years in jail, plus civil remedies under the Program Fraud Civil Remedies Act, suspension or debarment from federal contracting, and up to 3 years of ineligibility for related programs. Those status claims must be in writing. False past certifications under section 636(j)(10)(I) get the same penalties. Violating subcontracting limits under section 657s gets the same penalties, and if you overspent on subcontractors the fine will be the larger of $500,000 or the excess amount. If a business relied in good faith on a written advisory opinion from a Small Business Development Center or certain procurement help programs, it may be protected unless the Administration’s General Counsel rejects that opinion after receiving a copy.

Title 15, §645

Commerce and Trade — Source: USLM XML via OLRC

(a)Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of obtaining for himself or for any applicant any loan, or extension thereof by renewal, deferment of action, or otherwise, or the acceptance, release, or substitution of security therefor, or for the purpose of influencing in any way the action of the Administration, or for the purpose of obtaining money, property, or anything of value, under this chapter, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than two years, or both.

(b)Whoever, being connected in any capacity with the Administration, (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it or pledged or otherwise entrusted to it, or (2) with intent to defraud the Administration or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Administration, makes any false entry in any book, report, or statement of or to the Administration, or, without being duly authorized, draws any order or issues, puts forth, or assigns any note, debenture, bond, or other obligation, or draft, bill of exchange, mortgage, judgment, or decree thereof, or (3) with intent to defraud participates or shares in or receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, commission, contract, or any other act of the Administration, or (4) gives any unauthorized information concerning any future action or plan of the Administration which might affect the value of securities, or, having such knowledge, invests or speculates, directly or indirectly, in the securities or property of any company or corporation receiving loans or other assistance from the Administration, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both.

(c)Whoever, with intent to defraud, knowingly conceals, removes, disposes of, or converts to his own use or to that of another, any property mortgaged or pledged to, or held by, the Administration, shall be fined not more than $5,000 or imprisoned not more than five years, or both; but if the value of such property does not exceed $100, he shall be fined not more than $1,000 or imprisoned not more than one year, or both.

(d)(1)Whoever misrepresents the status of any concern or person as a “small business concern”, a “qualified HUBZone small business concern”, a “small business concern owned and controlled by service-disabled veterans”, a “small business concern owned and controlled by veterans”, a “small business concern owned and controlled by socially and economically disadvantaged individuals”, or a “small business concern owned and controlled by women”, in order to obtain for oneself or another any—

(A)prime contract to be awarded pursuant to section 637, 638, 644, 657a, 657f, or 657f–1 of this title;

(B)subcontract to be awarded pursuant to section 637(a) of this title;

(C)subcontract that is to be included as part or all of a goal contained in a subcontracting plan required pursuant to section 637(d) of this title; or

(D)prime or subcontract to be awarded as a result, or in furtherance, of any other provision of Federal law that specifically references section 637(d) of this title for a definition of program eligibility,11 So in original. Following provision probably should be set flush with par. (1). shall be subject to the penalties and remedies described in paragraph (2).

(2)Any person who violates paragraph (1) shall—

(A)be punished by a fine of not more than $500,000 or by imprisonment for not more than 10 years, or both;

(B)be subject to the administrative remedies prescribed by the Program Fraud Civil Remedies Act of 1986 22 See References in Text note below. (31 U.S.C. 3801–3812);

(C)be subject to suspension and debarment as specified in subpart 9.4 of title 48, Code of Federal Regulations (or any successor regulation); and

(D)be ineligible for participation in any program or activity conducted under the authority of this chapter or the Small Business Investment Act of 1958 (15 U.S.C. 661 et seq.) for a period not to exceed 3 years.

(3)This subsection shall not apply to any conduct in violation of subsection (a) if the defendant acted in good faith reliance on a written advisory opinion from a Small Business Development Center (as defined in this chapter), or an entity participating in the Procurement Technical Assistance Cooperative Agreement Program defined in chapter 388 of title 10; however nothing in this chapter shall obligate either entity to provide such a letter nor shall the provision of such a letter in any way render the providing entity liable to the business concern should the Administrator later determine that the concern is not a small business concern. Upon issuance of an advisory opinion under this paragraph, the entity issuing the advisory opinion shall remit a copy of the opinion to the General Counsel of the Administration, who may reject the advisory opinion. If the General Counsel of the Administration rejects the advisory opinion, the Administration shall notify the entity issuing the advisory opinion and the recipient of the opinion, after which time the business concern may not rely upon the opinion.

(e)Any representation of the status of any concern or person as a “small business concern”, a “HUBZone small business concern”, a “small business concern owned and controlled by service-disabled veterans”, a “small business concern owned and controlled by veterans”, a “small business concern owned and controlled by socially and economically disadvantaged individuals”, or a “small business concern owned and controlled by women” in order to obtain any prime contract or subcontract enumerated in subsection (d) of this section shall be in writing.

(f)Whoever falsely certifies past compliance with the requirements of section 636(j)(10)(I) of this title shall be subject to the penalties prescribed in subsection (d).

(g)(1)Whoever violates a requirement established under section 657s of this title shall be subject to the penalties prescribed in subsection (d), except that, for an entity that exceeded a limitation on subcontracting under such section, the fine described in subsection (d)(2)(A) shall be treated as the greater of—

(A)$500,000; or

(B)the dollar amount expended, in excess of permitted levels, by the entity on subcontractors.

(2)Not later than 1 year after January 2, 2013, the Administrator shall take such actions as are necessary to ensure that an existing Federal subcontracting reporting system is modified to notify the Administrator, the appropriate Director of the Office of Small and Disadvantaged Business Utilization, and the appropriate contracting officer if a requirement established under section 657s of this title is violated.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801–3812), referred to in subsec. (d)(2)(B), subsequently renamed the Administrative False Claims Act, is subtitle B of title VI of Pub. L. 99–509, Oct. 21, 1986, 100 Stat. 1934, which is classified generally to chapter 38 (§ 3801 et seq.) of Title 31, Money and Finance. For complete classification of this Act to the Code, see

Short Title

note set out under section 3801 of Title 31 and Tables. The Small Business Investment Act of 1958, referred to in subsec. (d)(2)(D), is Pub. L. 85–699, Aug. 21, 1958, 72 Stat. 689, which is classified principally to chapter 14B (§ 661 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 661 of this title and Tables.

Prior Provisions

Prior similar provisions were contained in section 209 of act

July 30, 1953, ch. 282, title II, 67 Stat. 237, which was previously classified to section 638 of this title. The provisions of section 216 of act

July 30, 1953, formerly classified to this section, were transferred to section 2[8] of Pub. L. 85–536, which was classified to section 637(c) of this title prior to repeal by Pub. L. 102–191. See section 656 of this title.

Amendments

2021—Subsec. (d)(1). Pub. L. 116–283, § 862(d)(2)(A)(i), substituted “ ‘small business concern’,” for “ ‘small business concern’,,” and “, a ‘small business concern owned and controlled by service-disabled veterans’, a ‘small business concern owned and controlled by veterans’, a ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ ” for “, a ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ ” in introductory provisions. Subsec. (d)(1)(A). Pub. L. 116–283, § 862(d)(2)(A)(ii), substituted “section 637, 638, 644, 657a, 657f, or 657f–1” for “section 638, 644, or 657a”. Subsec. (d)(3). Pub. L. 117–81 substituted “chapter 388” for “chapter 142”. Subsec. (e). Pub. L. 116–283, § 862(d)(2)(B), substituted “ ‘small business concern’,” for “ ‘small business concern’,,” and “, a ‘small business concern owned and controlled by service-disabled veterans’, a ‘small business concern owned and controlled by veterans’, a ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ ” for “, a ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ ”. 2013—Subsec. (d)(2)(C). Pub. L. 112–239, § 1682(a), struck out “on the basis that such misrepresentation indicates a lack of business integrity that seriously and directly affects the present responsibility to perform any contract awarded by the Federal Government or a subcontract under such a contract” after “regulation)”. Subsec. (d)(3). Pub. L. 112–239, § 1681(a), added par. (3). Subsec. (g). Pub. L. 112–239, § 1652, added subsec. (g). 1997—Subsec. (d)(1). Pub. L. 105–135, § 603(c)(1)(A), inserted “, a ‘qualified HUBZone small business concern’,” after “ ‘small business concern’,”. Pub. L. 105–85 substituted “concern owned and controlled by women” for “concerns owned and controlled by women”. Subsec. (d)(1)(A). Pub. L. 105–135, § 603(c)(1)(B), substituted “section 638, 644, or 657a” for “section 638 or 644”. Subsec. (e). Pub. L. 105–135, § 603(c)(2), inserted “, a ‘HUBZone small business concern’,” after “ ‘small business concern’,”. Pub. L. 105–85 substituted “concern owned and controlled by women” for “concerns owned and controlled by women”. 1994—Subsec. (d)(1). Pub. L. 103–355, § 7106(c)(1), substituted “, a ‘small business concern owned and controlled by socially and economically disadvantaged individuals’, or a ‘small business concerns owned and controlled by women’ ” for “or ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ ”. Subsec. (e). Pub. L. 103–355, § 7106(c)(2), substituted “, a ‘small business concern owned and controlled by socially and economically disadvantaged individuals’, or a ‘small business concerns owned and controlled by women’ ” for “or ‘small business concern owned and controlled by socially and economically disadvantaged individuals’ ”. 1988—Subsec. (d). Pub. L. 100–656, § 405(a), amended subsec. (d) generally, designating existing provisions as par. (1), redesignating former pars. (1) to (4) as subpars. (A) to (D), respectively, and in subpar. (D), substituting “subject to the penalties and remedies described in paragraph (2)” for “punished by a fine of not more than $50,000 or by imprisonment for not more than five years, or both”, and adding par. (2). Subsec. (f). Pub. L. 100–656, § 405(b), added subsec. (f). 1986—Subsecs. (d), (e). Pub. L. 99–272 added subsecs. (d) and (e). 1964—Subsec. (c). Pub. L. 88–264 added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 1997 AmendmentAmendment by Pub. L. 105–135 effective Oct. 1, 1997, see section 3 of Pub. L. 105–135, set out as a note under section 631 of this title.

Effective Date

of 1994 AmendmentFor

Effective Date

and applicability of amendment by Pub. L. 103–355, see section 10001 of Pub. L. 103–355, set out as a note under section 8752 of Title 10, Armed Forces.

Regulations

Pub. L. 112–239, div. A, title XVI, § 1681(b), Jan. 2, 2013, 126 Stat. 2085, provided that: “Not later than 270 days after the date of enactment of this part [Jan. 2, 2013], the Administrator of the Small Business Administration shall issue rules defining what constitutes an adequate advisory opinion for purposes of section 16(d)(3) of the Small Business Act [15 U.S.C. 645(d)(3)].” Development and Promulgation of Guidance Pub. L. 112–239, div. A, title XVI, § 1682(b), Jan. 2, 2013, 126 Stat. 2086, provided that: “Not later than 270 days after the date of enactment of this part [Jan. 2, 2013], the Administrator of the Small Business Administration shall develop and promulgate guidance implementing this section [amending this section and enacting provisions set out as a note below].” Publication of Procedures Regarding Suspension and Debarment Pub. L. 112–239, div. A, title XVI, § 1682(c), Jan. 2, 2013, 126 Stat. 2086, provided that: “Not later than 270 days after the date of enactment of this part [Jan. 2, 2013], the Administrator [of the Small Business Administration] shall publish and maintain on the [Small Business] Administration’s Web site the current standard operating procedures of the Administration for suspension and debarment, and the name and contact information for the individual designated by the Administrator as the senior individual responsible for suspension and debarment proceedings.”

§645 Offenses and penalties

Summary

Title 15, §645

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Short Title

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Regulations

Citations & Metadata