42 U.S.C. § 3215: Penalties

Summary

It is a crime to knowingly lie or purposely overvalue a security to get financial help under this law, to influence the Secretary’s actions, or to get money, property, or anything of value. A person who does this must be fined under title 18, imprisoned not more than 5 years, or both. Someone who works with the Secretary on these programs and steals or misuses funds or other things entrusted to them; makes false records or unauthorized financial orders or instruments; takes part in schemes to get money or benefits; or gives secret information about the Secretary’s future actions and then trades or invests on it, must be fined under title 18, imprisoned not more than 5 years, or both.

Title 42, §3215

The Public Health and Welfare, Source: USLM XML via OLRC

(a)False statements; security overvaluation

A person that makes any statement that the person knows to be false, or willfully overvalues any security, for the purpose of— (1)

(2)influencing in any manner the action of the Secretary; or

(3)obtaining money, property, or any thing of value, under this chapter;

shall be fined under title 18, imprisoned not more than 5 years, or both.

(b)Embezzlement and fraud-related crimes

A person that is connected in any capacity with the Secretary in the administration of this chapter and that—

(1)embezzles, abstracts, purloins, or willfully misapplies any funds, securities, or other thing of value, that is pledged or otherwise entrusted to the person;

(2)with intent to defraud the Secretary or any other person or entity, or to deceive any officer, auditor, or examiner—

(A)makes any false entry in any book, report, or statement of or to the Secretary; or

(B)without being duly authorized, draws any order or issue, puts forth, or assigns any note, debenture, bond, or other obligation, or draft, bill of exchange, mortgage, judgment, or decree thereof;

(3)with intent to defraud, participates or shares in or receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, grant, commission, contract, or any other act of the Secretary; or

(4)gives any unauthorized information concerning any future action or plan of the Secretary that 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, grants, or other assistance from the Secretary;

shall be fined under title 18, imprisoned not more than 5 years, or both.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 3215, Pub. L. 89–136, title VII, § 705, Aug. 26, 1965, 79 Stat. 573, related to separability of provisions, prior to repeal by Pub. L. 105–393, § 102(b)(3).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

§3215 Penalties