§1011 Penalties for Fraud

Summary

It is a crime to lie or hide important facts to get Social Security benefits, to give false information used to decide benefit rights, to hide events that change someone’s right to benefits, to spend benefits meant for another person on yourself, or to plan with others to do any of these things. If convicted, a person can be fined under Title 18, jailed for up to 5 years, or both. If the offender is paid for work tied to benefit decisions (for example a claimant representative, translator, current or former Social Security employee, or a doctor or health care provider who submits medical evidence), the crime is a felony and the person can be fined under Title 18, jailed for up to 10 years, or both. A federal court can also order the convicted person to repay money when their crime caused the Social Security Commissioner to pay benefits that should not have been paid, or when a person lost money because their appointed representative payee cheated them. Rules in sections 3612, 3663, and 3664 of Title 18 apply, and the Commissioner is treated as the victim. If the court does not order full restitution, it must say why on the record. Money paid to the Commissioner as restitution normally goes into the Treasury general fund. But if the payment is for a harmed individual, the Commissioner must pay that person the lesser of the restitution amount or the person’s actual loss, after subtracting any benefit overpayments the person owes under this or other listed subchapters.