22 U.S.C. § 2399b: False claims and ineligible…

Summary

Anyone who lies, cheats, or uses false papers to get payments from funds under this chapter must repay money and pay penalties. If a person files a false claim with a bank or a U.S. agency, hides that a commodity or service is not eligible, uses fake contracts, invoices, bills of lading, or other fraudulent tricks or schemes, they must pay back money and extra fines. They must pay 25 percent of any amount they tried to get but did not actually receive. They must give up any payment, loan, commission, or advance they did receive. On top of that, for each act they must pay either $2,000 plus twice the damage the United States suffered, or 50 percent of the payment received, whichever is greater, plus court costs. To collect these amounts, the President can sue in federal court where the person lives or can be found. The President can also send a registered-mail notice describing the claim and withhold money owed by any U.S. agency equal to the refunds, damages, and penalties claimed. That withholding is final unless the person sues the United States in federal court within one year of getting the notice. "Person" means an individual, corporation, partnership, association, or other legal entity.

Title 22, §2399b

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)Penalties; costs

Any person who makes or causes to be made or presents or causes to be presented to any bank or other financial institution or to any officer, agent, or employee of any agency of the United States Government a claim for payment from funds made available under this chapter for the purposes of furnishing assistance and who knows the claim to be false, fraudulent, or fictitious or to cover a commodity or commodity-related service determined by the President to be ineligible for payment from funds made available under this chapter, or who uses to support his claim any certification, statement, or entry on any contract, abstract, bill of lading, Government or commercial invoice, or Government form, which he knows, or in the exercise of prudent business management should know, to contain false, fraudulent, or fictitious information, or who uses or engages in any other fraudulent trick, scheme, or device for the purpose of securing or obtaining, or aiding to secure or obtain, for any person any benefit or payment from funds so made available under this chapter in connection with the negotiation, procurement, award, or performance of a contract financed with funds so made available under this chapter, and any person who enters into an agreement, combination, or conspiracy so to do, (1) shall pay to the United States an amount equal to 25 per centum of any amount thereby sought to be wrongfully secured or obtained but not actually received, and (2) shall forfeit and refund any payment, compensation, loan, commission, or advance received as a result thereof, and (3) shall, in addition, pay to the United States for each such act (A) the sum of $2,000 and double the amount of any damage which the United States may have sustained by reason thereof, or (B) an amount equal to 50 per centum of any such payment, compensation, loan, commission, or advance so received, whichever is the greater, together with the costs of suit.

(b)Recovery of penalties; procedure; finality of withholding of funds; recovery of withheld funds; limitation period

In order to secure recovery under this section, the President may, as he deems appropriate, (1) institute suit in the United States district court for any judicial district in which the person alleged to have performed or participated in an act described by this section may reside or may be found, and (2) upon posting by registered mail to such person a notice of claim describing the basis therefor and identifying the funds to be withheld, withhold from funds owed by any agency of the United States Government to such person an amount equal to the refund, damages, liquidated damages, and exemplary damages claimed by the United States under this section. Any such withholding of funds from any person shall constitute a final determination of the rights and liabilities of such person under this section with respect to the amount so withheld, unless within one year of receiving the notice of claim such person brings suit for recovery, which is hereby authorized, against the United States in any United States district court.

(c)“Person” defined

For purposes of this section, the term “person” includes any individual, corporation, partnership, association, or other legal entity.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (a), was in the original “this Act”, meaning Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, known as the Foreign Assistance Act of 1961. For complete classification of this Act to the Code, see

Short Title

note set out under section 2151 of this title and Tables.

Executive Documents

Delegation of Functions For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title.

§2399b False Claims and Ineligible Commodities