42 U.S.C. § 1011

Penalties for fraud

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(a) In generalWhoever—(1) knowingly and willfully makes or causes to be made any false statement or representation of a material fact in an application for benefits under this subchapter;(2) at any time knowingly and willfully makes or causes to be made any false statement or representation of a material fact for use in determining any right to the benefits;(3) having knowledge of the occurrence of any event affecting—(A) his or her initial or continued right to the benefits; or(B) the initial or continued right to the benefits of any other individual in whose behalf he or she has applied for or is receiving the benefit,conceals or fails to disclose the event with an intent fraudulently to secure the benefit either in a greater amount or quantity than is due or when no such benefit is authorized;(4) having made application to receive any such benefit for the use and benefit of another and having received it, knowingly and willfully converts the benefit or any part thereof to a use other than for the use and benefit of the other individual; or(5) conspires to commit any offense described in any of paragraphs (1) through (3),shall be fined under title 18, imprisoned not more than 5 years, or both, except that in the case of a person who receives a fee or other income for services performed in connection with any determination with respect to benefits under this subchapter (including a claimant representative, translator, or current or former employee of the Social Security Administration), or who is a physician or other health care provider who submits, or causes the submission of, medical or other evidence in connection with any such determination, such person shall be guilty of a felony and upon conviction thereof shall be fined under title 18, or imprisoned for not more than ten years, or both.(b) Court order for restitution(1) In generalAny Federal court, when sentencing a defendant convicted of an offense under subsection (a), may order, in addition to or in lieu of any other penalty authorized by law, that the defendant make restitution to the Commissioner of Social Security, in any case in which such offense results in—(A) the Commissioner of Social Security making a benefit payment that should not have been made, or(B) an individual suffering a financial loss due to the defendant’s violation of subsection (a) in his or her capacity as the individual’s representative payee appointed pursuant to section 1007(i) of this title.(2) Related provisions

Sections 3612, 3663, and 3664 of title 18 shall apply with respect to the issuance and enforcement of orders of restitution under this subsection. In so applying such sections, the Commissioner of Social Security shall be considered the victim.

(3) Stated reasons for not ordering restitution

If the court does not order restitution, or orders only partial restitution, under this subsection, the court shall state on the record the reasons therefor.

(4) Receipt of restitution payments(A) In general

Except as provided in subparagraph (B), funds paid to the Commissioner of Social Security as restitution pursuant to a court order shall be deposited as miscellaneous receipts in the general fund of the Treasury.

(B) Payment to the individual

In the case of funds paid to the Commissioner of Social Security pursuant to paragraph (1)(B), the Commissioner of Social Security shall certify for payment to the individual described in such paragraph an amount equal to the lesser of the amount of the funds so paid or the individual’s outstanding financial loss as described in such paragraph, except that such amount may be reduced by any overpayment of benefits owed under this subchapter, subchapter II, or subchapter XVI by the individual.

(Aug. 14, 1935, ch. 531, title VIII, § 811, as added Pub. L. 106–169, title II, § 251(a), Dec. 14, 1999, 113 Stat. 1852; amended Pub. L. 108–203, title II, § 209(b), Mar. 2, 2004, 118 Stat. 514; Pub. L. 114–74, title VIII, § 813(a)(2), (b)(2), Nov. 2, 2015, 129 Stat. 602, 603.)Editorial NotesPrior Provisions

For prior provisions, see note set out under section 1001 of this title.

Amendments

2015—Subsec. (a). Pub. L. 114–74, § 813(b)(2), inserted before period at end of concluding provisions “, except that in the case of a person who receives a fee or other income for services performed in connection with any determination with respect to benefits under this subchapter (including a claimant representative, translator, or current or former employee of the Social Security Administration), or who is a physician or other health care provider who submits, or causes the submission of, medical or other evidence in connection with any such determination, such person shall be guilty of a felony and upon conviction thereof shall be fined under title 18, or imprisoned for not more than ten years, or both”.

Subsec. (a)(5). Pub. L. 114–74, § 813(a)(2), added par. (5).

2004—Subsec. (b). Pub. L. 108–203 amended heading and text of subsec. (b) generally. Prior to amendment, text read as follows: “If a person or organization violates subsection (a) of this section in the person’s or organization’s role as, or in applying to become, a representative payee under section 1007 of this title on behalf of a qualified individual, and the violation includes a willful misuse of funds by the person or entity, the court may also require that full or partial restitution of funds be made to the qualified individual.”

Statutory Notes and Related SubsidiariesEffective Date of 2004 Amendment

Amendment by Pub. L. 108–203 applicable with respect to violations occurring on or after Mar. 2, 2004, see section 209(d) of Pub. L. 108–203, set out as a note under section 408 of this title.

Notes of Decisions

Cited in 40 cases (2 in the last 5 years), 1937–2022 · leading case: Better Bus. Bureau of Washington, D. C., Inc. v. United States, 326 U.S. 279 (1946).

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Better Bus. Bureau of Washington, D. C., Inc. v. United States, 326 U.S. 279 (1946). “620 , 639, 42 U. S. C. § 1011 (b): “The term 'employment’ means any service, of whatever nature, performed within the United States by an employee for his employer, except— “(8) Service performed in the employ of a corporation, community chest, fund, or foundation, organized and…”

Jones v. Better Bus. Bureau of Oklahoma City, Inc., 123 F.2d 767 (10th Cir. 1941). · cites it 3× “620 , 42 U.S.C.A. § 1011 . *769 The Bureau carries on a continuous campaign of fraud prevention work.”

United States v. Turner Turpentine Co., 111 F.2d 400 (5th Cir. 1940). · cites it 2× “, Title 42, 42 U.S.C.A. § 1011 ; that the taxes had been wrongfully exacted and must be refunded; and on full findings of fact 3 *402 and conclusions of law 4 he gave judgment for appellees.”

United States v. La Societe Francaise De Bienfaisance Mutuelle, 152 F.2d 243 (9th Cir. 1945). · cites it 2× “We have for consideration the question of whether appellee, La Societe Francaise de Bienfaisance Mutuelle, is exempt from social security taxes as a corporation organized and operated exclusively for charitable purposes within the meaning of § 811 (b) (8) of the Social Security…”

United States v. Cmty. Servs., Inc., 189 F.2d 421 (4th Cir. 1951). “Code Section 1426(b)(8), patterned after Section 101(6), originally appeared as Section 811(b)(8) of the Social Security Act, 42 U.S.C.A. § 1011 (b)(8). The committee reports accompanying that Act state (H.”

Scripture Press Found. v. United States, 285 F.2d 800 (Ct. Cl. 1961). “620 , 639, 42 U.S.C.A. § 1011 (b) (8). Section 811(b) (8) of the Social Security Act repeats almost in haec verba the language of § 101(6) of the Internal Revenue Code of 1939.”

Indian Refining Co. v. Dallman, 31 F. Supp. 455 (S.D. Ill. 1940). “The Social Security Act, in both Titles VIII and IX, defines “employment” as used in the Act, as “any service, of whatever nature, performed within the United States by an employee for his employer, except * * See Section 811(b), and 907(c), 42 U.S.C.A. §§ 1011 (b), 1107(c).…”

Anglim v. Empire Star Mines Co., 129 F.2d 914 (9th Cir. 1942). “” 42 U.S.C.A. §§ 1011 (b) and 1107(c). There is no controversy as regards the facts.”

In Re Gem State Academy Bakery, 224 P.2d 529 (Idaho 1950). “67 , wherein Better Business Bureau was claiming exemption from social security taxes as a corporation organized and operated exclusively for educational purposes within the meaning of Section 811(b) (8) of the Social Security Act, 42 U.S.C.A. § 1011 (b) (8). Said the court, `In…”

Smith v. Reynolds, 43 F. Supp. 510 (D. Minnesota 1942). · cites it 2× ““The following organizations shall be exempt from taxation under this chapter— ‡ * “(6) Corporations, and any community chest, fund, or foundation, organized and operated exclusively for * * * charitable * * * purposes, * * * no part of the net earnings of which inures to the…”

Kentucky Cottage Indus., Inc. v. Glenn, 39 F. Supp. 642 (W.D. Ky. 1941). “Section 811 of the Act, 42 U.S.C.A. § 1011 , provides that the term “employment” means any service, of whatever nature, performed within the United States by an employee for his employer, excepting certain classes of employment which are exempt and which are not applicable to…”

Oklahoma State Fair & Exposition v. Jones, 44 F. Supp. 630 (W.D. Okla. 1942). “42 U.S.C.A. §§ 1011 (b) (8), and 1107(c) (7).”

Show all 40 citing cases →

— 42 U.S.C. § 1011(b) — 5 cases

United States v. La Societe Francaise De Bienfaisance Mutuelle, 152 F.2d 243 (9th Cir. 1945). “We have for consideration the question of whether appellee, La Societe Francaise de Bienfaisance Mutuelle, is exempt from social security taxes as a corporation organized and operated exclusively for charitable purposes within the meaning of § 811 (b) (8) of the Social Security…”

Nat'l Campaign Comm. v. Rogan, 69 F. Supp. 679 (S.D. Cal. 1945).

Tidwell v. United States, 63 F. Supp. 609 (W.D. Tenn. 1945).

Boston Elevated Ry. Co. v. Welch, 25 F. Supp. 809 (D. Mass. 1939).

Lord's Day All. of Pennsylvania v. United States, 65 F. Supp. 62 (E.D. Pa. 1946).

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