15 U.S.C. § 645

Offenses and penalties

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(a) False statements; overvaluation of securities

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) Embezzlement, etc.

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.

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) Misrepresentation, etc.(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)Limitation on liability.—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) Representations under subsection (d) to be in writing

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) Misrepresentation of compliance with section 636(j)(10)(I)

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) Subcontracting limitations(1) In generalWhoever 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) Monitoring

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.

(Pub. L. 85–536, § 2[16], July 18, 1958, 72 Stat. 395; Pub. L. 88–264, § 2, Feb. 5, 1964, 78 Stat. 8; Pub. L. 99–272, title XVIII, § 18009, Apr. 7, 1986, 100 Stat. 368; Pub. L. 100–656, title IV, § 405, Nov. 15, 1988, 102 Stat. 3875; Pub. L. 103–355, title VII, § 7106(c), Oct. 13, 1994, 108 Stat. 3376; Pub. L. 105–85, div. A, title X, § 1073(g)(4), Nov. 18, 1997, 111 Stat. 1906; Pub. L. 105–135, title VI, § 603(c), Dec. 2, 1997, 111 Stat. 2632; Pub. L. 112–239, div. A, title XVI, §§ 1652, 1681(a), 1682(a), Jan. 2, 2013, 126 Stat. 2081, 2085, 2086; Pub. L. 116–283, div. A, title VIII, § 862(d)(2), Jan. 1, 2021, 134 Stat. 3780; Pub. L. 117–81, div. A, title XVII, § 1702(e)(6), Dec. 27, 2021, 135 Stat. 2157.)Editorial NotesReferences 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 SubsidiariesEffective Date of 1997 Amendment

Amendment 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 Amendment

For 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.”

Notes of Decisions

Cited in 71 cases (12 in the last 5 years), 1966–2026 · leading case: United States v. Sanders, 343 F.3d 511 (5th Cir. 2003).

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United States v. Sanders, 343 F.3d 511 (5th Cir. 2003). · cites it 4× “§§ 1344 and 2, and for making a false statement to the Small Business Administration in violation of 15 U.S.C. §§ 645 (a) and 2. He appeals claiming the evidence was insufficient to support his conviction, the district court erred in admitting certain evidence, and the district…”

United States v. George Condon, Samuel William Brawner, 132 F.3d 653 (11th Cir. 1998). · cites it 8× “PER CURIAM: Defendants-appellants George Condon and Samuel William Brawner appeal from jury convictions for making false statements to the Small Business Administration (“SBA”), in violation of 15 U.S.C. § 645 (a), and conspiracy to do the same.”

United States v. James A. Notarantonio, United States of Am. v. Edward Notorantonio, United States of Am. v. Inge Co. Inc., 758 F.2d 777 (1st Cir. 1985). · cites it 6× “Notarantonio had been charged with a violation of 15 U.S.C. § 645 (a), which reads in full: 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…”

United States v. Wells, 519 U.S. 482 (1997). · cites it 2× “§ 50 (penalizing false statement to [Federal Trade Commission]); 15 U. S. C. § 645 (offenses and penalties for certain crimes related to commerce and trade); 15 U.”

United States v. John K. Elliott, 689 F.2d 178 (10th Cir. 1982). · cites it 10× “Elliott, appeals his conviction under 15 U.S.C. § 645 (a) for making a false statement to the Small Business Administration.”

United States v. Leal, 30 F.3d 577 (5th Cir. 1994). · cites it 8× “§ 371 and conversion of SBA funds for personal use in violation of 15 U.S.C. § 645 (c). Additionally, Leal and Vargas were charged with several counts of making false statements to the government in violation of 18 U.”

United States v. Collier, 297 B.R. 676 (6th Cir. 2003). · cites it 5× “§ 1344 (2), and for making false statements to the Small Business Administration (“SBA”), in violation of 15 U.S.C. § 645 (a). On appeal, Collier contends that the district court erred in: (1) denying his motion to dismiss the false statement count on the statute of limitations…”

Roman Novatchinski v. Eric Holder, Jr., 516 F. App'x 526 (6th Cir. 2013). · cites it 9× “Petitioner Roman Novatchinski, a citizen of Ukraine, pled guilty in September 2007 to violating 15 U.S.C. § 645 (a) by knowingly making a false statement for the purpose of influencing the action of the Small Business Administration (SBA).”

United States v. Carter, 526 F.2d 1276 (5th Cir. 1976). · cites it 3× “§ 1001 was improper because that statute was impliedly repealed by 15 U.S.C. § 645 (a). He also claims that the trial judge erred in denying his motion for a mistrial based on alleged improper questioning of a government witness by the Assistant United States Attorney.”

Jenkins v. Fid. Bank, 365 F. Supp. 1391 (E.D. Pa. 1973). · cites it 6× “This is essentially a restatement of Count 6 except that plaintiff here purports to base jurisdiction and the cause of action upon 15 U.S.C. § 645 . This section, which establishes criminal penalties for willful misapplication of SBA funds, has been held not to create a private…”

United States v. Johnnie Joyner, 539 F.2d 1162 (8th Cir. 1976). · cites it 2× “This direct criminal appeal is taken from a jury’s verdict of guilty on an indictment charging appellant Joyner with the knowing concealment, removal and conversion with intent to defraud of a truck tractor mortgaged to the Small Business Administration (SBA) having a value in…”

United States v. Barry F. Bryant, 770 F.2d 1283 (5th Cir. 1985). · cites it 2× “Bryant was charged in the original indictment with one count of fraudulent conversion of collateral from the SBA in violation of 15 U.S.C. § 645 (c) (count eight of the superseding indictment).”

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— 15 U.S.C. § 645(a) — 1 case

United States v. Bruce Bonnett, 877 F.2d 1450 (10th Cir. 1989).

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.