38 U.S.C. § 6103 — Forfeiture for fraud

Page 1106 TITLE 38—VETERANS’ BENEFITS § 6101 Sec. 6102. Fraudulent acceptance of payments. 6103. Forfeiture for fraud. 6104. Forfeiture for treason. 6105. Forfeiture for subversive activities. 6106. Misuse of benefits by fiduciaries. 6107. Reissuance of benefits. 6108. Authority for judicial orders of restitution. Editorial Notes AMENDMENTS 2004—Pub. L. 108–454, title V, §§ 503(b), 504(b)(2), Dec. 10, 2004, 118 Stat. 3620, 3621, added items 6106 to 6108. 1991—Pub. L. 102–40, title IV, § 402(c)(1), May 7, 1991, 105 Stat. 239, renumbered items 3501 to 3505 as 6101 to 6105, respectively. 1959—Pub. L. 86–222, § 3(b), Sept. 1, 1959, 73 Stat. 453, added item 3505. § 6101. Misappropriation by fiduciaries (a) Whoever, being a fiduciary (as defined in section 5506 of this title) for the benefit of a minor, incompetent, or other beneficiary under laws administered by the Secretary, shall lend, borrow, pledge, hypothecate, use, or exchange for other funds or property, except as authorized by law, or embezzle or in any manner misappro- priate any such money or property derived therefrom in whole or in part and coming into such fiduciary’s control in any manner whatever in the execution of such fiduciary’s trust, or under color of such fiduciary’s office or service as such fiduciary, shall be fined in accordance with title 18, or imprisoned not more than five years, or both. (b) Any willful neglect or refusal to make and file proper accountings or reports concerning such money or property as required by law shall be taken to be sufficient evidence prima facie of such embezzlement or misappropriation. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1239, § 3501; Pub. L. 99–576, title VII, § 701(82), Oct. 28, 1986, 100 Stat. 3298; renumbered § 6101, Pub. L. 102–40, title IV, § 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102–54, § 14(d)(7), June 13, 1991, 105 Stat. 286; Pub. L. 102–83, § 4(a)(1), Aug. 6, 1991, 105 Stat. 403; Pub. L. 103–446, title XII, § 1201(e)(17), Nov. 2, 1994, 108 Stat. 4686; Pub. L. 108–454, title V, § 501(c), Dec. 10, 2004, 118 Stat. 3618.) Editorial Notes AMENDMENTS 2004—Subsec. (a). Pub. L. 108–454, § 501(c), substituted ‘‘fiduciary (as defined in section 5506 of this title) for the benefit of a minor, incompetent, or other bene- ficiary under laws administered by the Secretary,’’ for ‘‘guardian, curator, conservator, committee, or person legally vested with the responsibility or care of a claimant or a claimant’s estate, or any other person having charge and custody in a fiduciary capacity of money heretofore or hereafter paid under any of the laws administered by the Secretary for the benefit of any minor, incompetent, or other beneficiary,’’. 1994—Subsec. (a). Pub. L. 103–446 inserted a comma after ‘‘title 18’’. 1991—Pub. L. 102–40 renumbered section 3501 of this title as this section. Subsec. (a). Pub. L. 102–83 substituted ‘‘administered by the Secretary’’ for ‘‘administered by the Veterans’ Administration’’. Pub. L. 102–54 amended subsec. (a) as in effect imme- diately before the enactment of Pub. L. 102–40 by sub- stituting ‘‘in accordance with title 18’’ for ‘‘not more than $2,000’’. 1986—Subsec. (a). Pub. L. 99–576 substituted ‘‘a claim- ant’s’’ for ‘‘his’’ before ‘‘estate’’, and ‘‘such fiduciary’s’’ for ‘‘his’’ in three places. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–454 effective on the first day of the seventh month beginning after Dec. 10, 2004, see section 507(a) of Pub. L. 108–454, set out as an Effec- tive Date of 2004 Amendment note under section 5312 of this title. § 6102. Fraudulent acceptance of payments (a) Any person entitled to monetary benefits under any of the laws administered by the Sec- retary whose right to payment thereof ceases upon the happening of any contingency, who thereafter fraudulently accepts any such pay- ment, shall be fined in accordance with title 18, or imprisoned not more than one year, or both. (b) Whoever obtains or receives any money or check under any of the laws administered by the Secretary without being entitled to it, and with intent to defraud the United States or any bene- ficiary of the United States, shall be fined in ac- cordance with title 18, or imprisoned not more than one year, or both. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1239, § 3502; renumbered § 6102, Pub. L. 102–40, title IV, § 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102–54, § 14(d)(7), June 13, 1991, 105 Stat. 286; Pub. L. 102–83, § 4(a)(1), Aug. 6, 1991, 105 Stat. 403.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–40 renumbered section 3502 of this title as this section. Pub. L. 102–83 substituted ‘‘administered by the Sec- retary’’ for ‘‘administered by the Veterans’ Adminis- tration’’ in subsecs. (a) and (b). Pub. L. 102–54 amended section as in effect imme- diately before the enactment of Pub. L. 102–40 by sub- stituting ‘‘in accordance with title 18’’ for ‘‘not more than $2,000’’ in subsecs. (a) and (b). § 6103. Forfeiture for fraud (a) Whoever knowingly makes or causes to be made or conspires, combines, aids, or assists in, agrees to, arranges for, or in any way procures the making or presentation of a false or fraudu- lent affidavit, declaration, certificate, state- ment, voucher, or paper, concerning any claim for benefits under any of the laws administered by the Secretary (except laws pertaining to in- surance benefits) shall forfeit all rights, claims, and benefits under all laws administered by the Secretary (except laws pertaining to insurance benefits). (b) Whenever a veteran entitled to disability compensation has forfeited the right to such compensation under this section, the compensa- tion payable but for the forfeiture shall there- after be paid to the veteran’s spouse, children, and parents. Payments made to a spouse, chil- dren, and parents under the preceding sentence shall not exceed the amounts payable to each if the veteran had died from service-connected dis- ability. No spouse, child, or parent who partici- Page 1107 TITLE 38—VETERANS’ BENEFITS § 6104 pated in the fraud for which forfeiture was im- posed shall receive any payment by reason of this subsection. An apportionment award under this subsection may not be made in any case after September 1, 1959. (c) Forfeiture of benefits by a veteran shall not prohibit payment of the burial allowance, death compensation, dependency and indemnity compensation, or death pension in the event of the veteran’s death. (d)(1) After September 1, 1959, no forfeiture of benefits may be imposed under this section or section 6104 of this title upon any individual who was a resident of, or domiciled in, a State at the time the act or acts occurred on account of which benefits would, but not for this sub- section, be forfeited unless such individual ceases to be a resident of, or domiciled in, a State before the expiration of the period during which criminal prosecution could be instituted. This subsection shall not apply with respect to (A) any forfeiture occurring before September 1, 1959, or (B) an act or acts which occurred in the Philippine Islands before July 4, 1946. (2) The Secretary is hereby authorized and di- rected to review all cases in which, because of a false or fraudulent affidavit, declaration, certifi- cate, statement, voucher, or paper, a forfeiture of gratuitous benefits under laws administered by the Secretary was imposed, pursuant to this section or prior provisions of law, on or before September 1, 1959. In any such case in which the Secretary determines that the forfeiture would not have been imposed under the provisions of this section in effect after September 1, 1959, the Secretary shall remit the forfeiture, effective June 30, 1972. Benefits to which the individual concerned becomes eligible by virtue of any such remission may be awarded, upon application therefor, and the effective date of any award of compensation, dependency and indemnity com- pensation, or pension made in such a case shall be fixed in accordance with the provisions of section 5110(g) of this title. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1240, § 3503; Pub. L. 86–222, § 1, Sept. 1, 1959, 73 Stat. 452; Pub. L. 91–24, § 13(a), June 11, 1969, 83 Stat. 34; Pub. L. 92–328, title II, § 206, June 30, 1972, 86 Stat. 397; Pub. L. 98–160, title VII, § 703(6), Nov. 21, 1983, 97 Stat. 1011; Pub. L. 99–576, title VII, § 701(83), Oct. 28, 1986, 100 Stat. 3298; renumbered § 6103 and amended Pub. L. 102–40, title IV, § 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102–54, § 14(d)(8), June 13, 1991, 105 Stat. 286; Pub. L. 102–83, § 4(a)(1), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403–405; Pub. L. 103–446, title XII, § 1201(e)(18), (f)(5), Nov. 2, 1994, 108 Stat. 4686, 4687.) Editorial Notes AMENDMENTS 1994—Subsec. (d)(1). Pub. L. 103–446, § 1201(e)(18), in second sentence substituted ‘‘(A) any’’ for ‘‘(a) any’’, ‘‘(B) an act’’ for ‘‘(b) an act’’, and ‘‘before July 4, 1946’’ for ‘‘prior to July 4, 1946’’. Subsec. (d)(2). Pub. L. 103–446, § 1201(f)(5), substituted ‘‘June 30, 1972’’ for ‘‘the date of enactment of this amendatory Act’’. 1991—Pub. L. 102–40, § 402(b)(1), renumbered section 3503 of this title as this section. Subsec. (a). Pub. L. 102–83, § 4(a)(1), substituted ‘‘ad- ministered by the Secretary’’ for ‘‘administered by the Veterans’ Administration’’ in two places. Subsec. (b). Pub. L. 102–54, § 14(d)(8)(A), amended sub- sec. (b) as in effect immediately before the enactment of Pub. L. 102–40 by inserting at end ‘‘An apportionment award under this subsection may not be made in any case after September 1, 1959.’’ Subsec. (d)(1). Pub. L. 102–40, § 402(d)(1), substituted ‘‘6104’’ for ‘‘3504’’. Subsec. (d)(2). Pub. L. 102–83, § 4(b)(1), (2)(E), sub- stituted ‘‘Secretary’’ for ‘‘Administrator’’ in three places. Pub. L. 102–83, § 4(a)(1), substituted ‘‘administered by the Secretary’’ for ‘‘administered by the Veterans’ Ad- ministration’’. Pub. L. 102–40, § 402(d)(1), substituted ‘‘5110(g)’’ for ‘‘3010(g)’’. Subsec. (e). Pub. L. 102–54, § 14(d)(8)(B), amended sec- tion as in effect immediately before the enactment of Pub. L. 102–40 by striking out subsec. (e) which read as follows: ‘‘No apportionment award under subsection (b) of this section shall be made in any case after the date of enactment of this subsection.’’ 1986—Subsec. (c). Pub. L. 99–576, § 701(83)(A), sub- stituted ‘‘the veteran’s’’ for ‘‘his’’. Subsec. (d)(2). Pub. L. 99–576, § 701(83)(B), substituted ‘‘the Administrator’’ for ‘‘he’’ in two places in second sentence. 1983—Subsec. (b). Pub. L. 98–160 substituted ‘‘the right’’ for ‘‘his right’’, ‘‘the veteran’s spouse’’ for ‘‘his wife’’, and ‘‘spouse’’ for ‘‘wife’’ in two places. 1972—Subsec. (d). Pub. L. 92–328 designated existing provisions as par. (1) and added par. (2). 1969—Subsec. (d). Pub. L. 91–24 substituted ‘‘Sep- tember 1, 1959’’ for ‘‘the date of enactment of this sub- section’’ wherever appearing. 1959—Subsecs. (d) and (e). Pub. L. 86–222 added sub- secs. (d) and (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1972 AMENDMENT Amendment by Pub. L. 92–328 effective June 30, 1972, see section 301(c) of Pub. L. 92–328, set out as a note under section 3713 of this title. § 6104. Forfeiture for treason (a) Any person shown by evidence satisfactory to the Secretary to be guilty of mutiny, treason, sabotage, or rendering assistance to an enemy of the United States or of its allies shall forfeit all accrued or future gratuitous benefits under laws administered by the Secretary. (b) The Secretary, in the Secretary’s discre- tion, may apportion and pay any part of benefits forfeited under subsection (a) to the dependents of the person forfeiting such benefits. No de- pendent of any person shall receive benefits by reason of this subsection in excess of the amount to which the dependent would be enti- tled if such person were dead. (c) In the case of any forfeiture under this sec- tion there shall be no authority after September 1, 1959 (1) to make an apportionment award pur- suant to subsection (b) or (2) to make an award to any person of gratuitous benefits based on any period of military, naval, air, or space serv- ice commencing before the date of commission of the offense. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1240, § 3504; Pub. L. 86–222, § 2, Sept. 1, 1959, 73 Stat. 452; Pub. L. 91–24, § 13(b), June 11, 1969, 83 Stat. 34; Pub. L. 97–295, § 4(78), Oct. 12, 1982, 96 Stat. 1311; Pub. L. 99–576, title VII, § 701(84), Oct. 28, 1986, 100 Stat.