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-CITE-
42 USC Sec. 408 01/19/04
-EXPCITE-
TITLE 42 - THE PUBLIC HEALTH AND WELFARE
CHAPTER 7 - SOCIAL SECURITY
SUBCHAPTER II - FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE
BENEFITS
-HEAD-
Sec. 408. Penalties
-STATUTE-
(a) In general
Whoever -
(1) for the purpose of causing an increase in any payment
authorized to be made under this subchapter, or for the purpose
of causing any payment to be made where no payment is authorized
under this subchapter, shall make or cause to be made any false
statement or representation (including any false statement or
representation in connection with any matter arising under
subchapter E of chapter 1, or subchapter A or E of chapter 9 of
the Internal Revenue Code of 1939, or chapter 2 or 21 or subtitle
F of the Internal Revenue Code of 1954) as to -
(A) whether wages were paid or received for employment (as
said terms are defined in this subchapter and the Internal
Revenue Code), or the amount of wages or the period during
which paid or the person to whom paid; or
(B) whether net earnings from self-employment (as such term
is defined in this subchapter and in the Internal Revenue Code)
were derived, or as to the amount of such net earnings or the
period during which or the person by whom derived; or
(C) whether a person entitled to benefits under this
subchapter had earnings in or for a particular period (as
determined under section 403(f) of this title for purposes of
deductions from benefits), or as to the amount thereof; or
(2) makes or causes to be made any false statement or
representation of a material fact in any application for any
payment or for a disability determination under this subchapter;
or
(3) at any time makes or causes to be made any false statement
or representation of a material fact for use in determining
rights to payment under this subchapter; or
(4) having knowledge of the occurrence of any event affecting
(1) his initial or continued right to any payment under this
subchapter, or (2) the initial or continued right to any payment
of any other individual in whose behalf he has applied for or is
receiving such payment, conceals or fails to disclose such event
with an intent fraudulently to secure payment either in a greater
amount than is due or when no payment is authorized; or
(5) having made application to receive payment under this
subchapter for the use and benefit of another and having received
such a payment, knowingly and willfully converts such a payment,
or any part thereof, to a use other than for the use and benefit
of such other person; or
(6) willfully, knowingly, and with intent to deceive the
Commissioner of Social Security as to his true identity (or the
true identity of any other person) furnishes or causes to be
furnished false information to the Commissioner of Social
Security with respect to any information required by the
Commissioner of Social Security in connection with the
establishment and maintenance of the records provided for in
section 405(c)(2) of this title; or
(7) for the purpose of causing an increase in any payment
authorized under this subchapter (or any other program financed
in whole or in part from Federal funds), or for the purpose of
causing a payment under this subchapter (or any such other
program) to be made when no payment is authorized thereunder, or
for the purpose of obtaining (for himself or any other person)
any payment or any other benefit to which he (or such other
person) is not entitled, or for the purpose of obtaining anything
of value from any person, or for any other purpose -
(A) willfully, knowingly, and with intent to deceive, uses a
social security account number, assigned by the Commissioner of
Social Security (in the exercise of the Commissioner's
authority under section 405(c)(2) of this title to establish
and maintain records) on the basis of false information
furnished to the Commissioner of Social Security by him or by
any other person; or
(B) with intent to deceive, falsely represents a number to be
the social security account number assigned by the Commissioner
of Social Security to him or to another person, when in fact
such number is not the social security account number assigned
by the Commissioner of Social Security to him or to such other
person; or
(C) knowingly alters a social security card issued by the
Commissioner of Social Security, buys or sells a card that is,
or purports to be, a card so issued, counterfeits a social
security card, or possesses a social security card or
counterfeit social security card with intent to sell or alter
it; or
(8) discloses, uses, or compels the disclosure of the social
security number of any person in violation of the laws of the
United States;
shall be guilty of a felony and upon conviction thereof shall be
fined under title 18 or imprisoned for not more than five years, or
both.
(b) Violations by certified payees
Any person or other entity who is convicted of a violation of any
of the provisions of this section, if such violation is committed
by such person or entity in his role as, or in applying to become,
a certified payee under section 405(j) of this title on behalf of
another individual (other than such person's spouse), upon his
second or any subsequent such conviction shall, in lieu of the
penalty set forth in the preceding provisions of this section, be
guilty of a felony and shall be fined under title 18 or imprisoned
for not more than five years, or both. In the case of any violation
described in the preceding sentence, including a first such
violation, if the court determines that such violation includes a
willful misuse of funds by such person or entity, the court may
also require that full or partial restitution of such funds be made
to the individual for whom such person or entity was the certified
payee.
(c) Effect upon certification as payee; definitions
Any individual or entity convicted of a felony under this section
or under section 1383a(b) of this title may not be certified as a
payee under section 405(j) of this title. For the purpose of
subsection (a)(7) of this section, the terms "social security
number" and "social security account number" mean such numbers as
are assigned by the Commissioner of Social Security under section
405(c)(2) of this title whether or not, in actual use, such numbers
are called social security numbers.
(d) Application of subsection (a)(6) and (7) to certain aliens
(1) Except as provided in paragraph (2), an alien -
(A) whose status is adjusted to that of lawful temporary
resident under section 1160 or 1255a of title 8 or under section
902 of the Foreign Relations Authorization Act, Fiscal Years 1988
and 1989,
(B) whose status is adjusted to that of permanent resident -
(i) under section 202 of the Immigration Reform and Control
Act of 1986, or
(ii) pursuant to section 1259 of title 8, or
(C) who is granted special immigrant status under section
1101(a)(27)(I) of title 8,
shall not be subject to prosecution for any alleged conduct
described in paragraph (6) or (7) of subsection (a) of this section
if such conduct is alleged to have occurred prior to 60 days after
November 5, 1990.
(2) Paragraph (1) shall not apply with respect to conduct
(described in subsection (a)(7)(C) of this section) consisting of -
(A) selling a card that is, or purports to be, a social
security card issued by the Commissioner of Social Security,
(B) possessing a social security card with intent to sell it,
or
(C) counterfeiting a social security card with intent to sell
it.
(3) Paragraph (1) shall not apply with respect to any criminal
conduct involving both the conduct described in subsection (a)(7)
of this section to which paragraph (1) applies and any other
criminal conduct if such other conduct would be criminal conduct if
the conduct described in subsection (a)(7) of this section were not
committed.
-SOURCE-
(Aug. 14, 1935, ch. 531, title II, Sec. 208, 49 Stat. 625; Aug. 10,
1939, ch. 666, title II, Sec. 201, 53 Stat. 1362, 1372; Aug. 28,
1950, ch. 809, title I, Sec. 109(c), 64 Stat. 523; Sept. 1, 1954,
ch. 1206, title I, Sec. 111(b), 68 Stat. 1085; Pub. L. 85-840,
title III, Sec. 310, Aug. 28, 1958, 72 Stat. 1034; Pub. L. 86-778,
title II, Sec. 211(m), Sept. 13, 1960, 74 Stat. 958; Pub. L.
92-603, title I, Sec. 130(a), Oct. 30, 1972, 86 Stat. 1359; Pub. L.
94-455, title XII, Sec. 1211(a), (d), Oct. 4, 1976, 90 Stat. 1711,
1712; Pub. L. 97-123, Sec. 4(a), (b), Dec. 29, 1981, 95 Stat. 1663,
1664; Pub. L. 98-369, div. B, title VI, Sec. 2663(a)(5), July 18,
1984, 98 Stat. 1162; Pub. L. 98-460, Sec. 16(c)(2), Oct. 9, 1984,
98 Stat. 1811; Pub. L. 100-690, title VII, Sec. 7088, Nov. 18,
1988, 102 Stat. 4409; Pub. L. 101-508, title V, Secs. 5121,
5130(a)(1), Nov. 5, 1990, 104 Stat. 1388-283, 1388-289; Pub. L.
103-296, title I, Sec. 107(a)(4), title III, Sec. 321(a)(12), Aug.
15, 1994, 108 Stat. 1478, 1536; Pub. L. 106-553, Sec. 1(a)(2)
[title VI, Sec. 635(c)(2)(1), (2)], Dec. 21, 2000, 114 Stat. 2762,
2762A-117; Pub. L. 106-554, Sec. 1(a)(4) [div. A, Sec. 213(a)(6)],
Dec. 21, 2000, 114 Stat. 2763, 2763A-180.)
-REFTEXT-
REFERENCES IN TEXT
Subchapter E of chapter 1 and subchapters A and E of chapter 9 of
the Internal Revenue Code of 1939, referred to in subsec. (a)(1),
were comprised of sections 480-482, 1400-1432, and 1630-1636,
respectively, and were repealed (subject to certain exceptions) by
section 7851(a)(1)(A), (3) of Title 26, Internal Revenue Code of
1954 (act Aug. 16, 1954, ch. 736, 68A Stat. 3). The I.R.C. 1954 was
redesignated I.R.C. 1986 by Pub. L. 99-514, Sec. 2, Oct. 22, 1986,
100 Stat. 2095.
For provision deeming a reference in other laws to a provision of
the 1939 Code as a reference to the corresponding provisions of the
1986 Code, see section 7852(b) of the 1986 Code. For table of
comparisons of the 1939 Code to the 1986 Code, see table preceding
section 1 of Title 26, Internal Revenue Code. The Internal Revenue
Code of 1986 is classified generally to Title 26.
Chapters 2 and 21 and subtitle F of the Internal Revenue Code of
1954, referred to in subsec. (a)(1), were redesignated chapters 2
and 21 and subtitle F of the Internal Revenue Code of 1986, and are
classified to sections 1401 et seq., 3101 et seq., and 6001 et
seq., respectively, of Title 26.
Section 902 of the Foreign Relations Authorization Act, Fiscal
Years 1988 and 1989, referred to in subsec. (d)(1)(A), is section
902 of Pub. L. 100-204, which is set out as a note under section
1255a of Title 8, Aliens and Nationality.
Section 202 of the Immigration Reform and Control Act of 1986,
referred to in subsec. (d)(1)(B)(i), is section 202 of Pub. L.
99-603, which is set out as a note under section 1255a of Title 8.
-MISC1-
AMENDMENTS
2000 - Subsec. (a)(8) to (10). Pub. L. 106-553, which inserted
"or" at end of par. (8) and added pars. (9) and (10), was repealed
by Pub. L. 106-554, effective as if included in Pub. L. 106-553 on
Dec. 21, 2000. Pars. (9) and (10) read as follows:
"(9) except as provided in section 1320b-23(d) of this title,
knowingly and willfully displays or sells to the general public (as
defined in section 1320b-23(g) of this title) any individual's
social security number, or any identifiable derivative of such
number, without the affirmatively expressed consent (as defined in
section 1320b-23(c) of this title), electronically or in writing,
of such individual; or
"(10) obtains any individual's social security number, or any
identifiable derivative of such number, for purposes of locating or
identifying an individual with the intent to physically injure,
harm, or use the identity of the individual for illegal purposes;".
1994 - Subsec. (a)(6), (7). Pub. L. 103-296, Sec. 107(a)(4),
substituted "Commissioner of Social Security" for "Secretary"
wherever appearing and "the Commissioner's authority" for "his
authority" in par. (7)(A).
Subsec. (c). Pub. L. 103-296, Sec. 321(a)(12), substituted
"subsection (a)(7)" for "subsection (g)".
Pub. L. 103-296, Sec. 107(a)(4), substituted "Commissioner of
Social Security" for "Secretary".
Subsec. (d)(2)(A). Pub. L. 103-296, Sec. 107(a)(4), substituted
"Commissioner of Social Security" for "Secretary".
1990 - Pub. L. 101-508, Sec. 5121, inserted "(a)" before "Whoever
- ", redesignated former subsecs. (a) to (h) as pars. (1) to (8),
respectively, of subsec. (a), in pars. (1) and (7) redesignated
former pars. (1) to (3) as subpars. (A) to (C), respectively,
inserted "(b)" before "Any person or other entity who is
convicted", inserted "(c)" before "Any individual or entity
convicted of a felony", and added subsec. (d).
Pub. L. 101-508, Sec. 5130(a)(1), in the last undesignated
paragraph substituted "section 405(c)(2) of this title" for
"section 605(c)(2) of this title".
1988 - Pub. L. 100-690 substituted "under title 18" for "not more
than $5,000" in first undesignated par., substituted "under title
18" for "not more than $25,000" in second undesignated par., and
inserted provisions at end defining for purposes of subsec. (g)
"social security number" and "social security account number".
1984 - Pub. L. 98-460 inserted provisions imposing a penalty of
$25,000 or imprisonment for not more than five years, or both, on
any person or other entity convicted for a second or subsequent
violation of this section, if such violation is committed by such
person or entity in his role as, or in applying to become, a
certified payee under section 405(j) of this title, and also
granting the court discretion, in any case, including a first
offense, involving a willful misuse of funds, to require full or
partial restitution, and prohibiting the certification of any
individual or entity convicted of a felony under this section or
under section 1383a(b) of this title.
Subsecs. (f) to (h). Pub. L. 98-369 realigned margins of subsecs.
(f) to (h).
1981 - Pub. L. 97-123 substituted provisions making violation of
section a felony for provisions making it a misdemeanor, increased
the punishment from one to five years and penalty from $1,000 to
$5,000, and in subsec. (g), in opening paragraph, substituted "or
for the purpose of obtaining anything of value from any person, or
for any other purpose" for "or for any other purpose", and added
par. (3).
1976 - Subsec. (g). Pub. L. 94-455, Sec. 1211(a), inserted ", or
for any other purpose" after "entitled" in provisions preceding cl.
(1).
Subsec. (h). Pub. L. 94-455, Sec. 1211(d)(1), added subsec. (h).
1972 - Subsecs. (f), (g). Pub. L. 92-603 added subsecs. (f) and
(g).
1960 - Subsec. (a)(3). Pub. L. 86-778 substituted "section 403(f)
of this title" for "section 403(e) of this title".
1958 - Pub. L. 85-840 amended section generally, by, among other
changes, inserting references to the Internal Revenue Code of 1954,
and making penalty provisions applicable to cases (1) where false
statements or representations as to whether wages were paid or
received for employment, or whether net earnings from
self-employment were derived, or whether a person entitled to
benefits under this subchapter had earnings in or for a particular
period, or as to the amount thereof, are made for the purpose of
obtaining or increasing benefits; (2) where false statements or
representations are made in any application for disability
determination; (3) where a person intentionally conceals or fails
to disclose knowledge of any event affecting his or another's
initial or continued right to payment, and (4) where a person
converts a payment that he received for the use and benefit of
another.
1954 - Act Sept. 1, 1954, made it clear that the penalty
provisions of the section extend to cases of false statements or
representations as to the amount of net earnings from
self-employment derived or the period during which derived.
1950 - Act Aug. 28, 1950, substituted "subchapter E of chapter 1,
or subchapter A or E of chapter 9 of the Internal Revenue Code of
1939" for "the Federal Insurance Contributions Act".
1939 - Act Aug. 10, 1939, amended section generally,
incorporating provisions of section 409 of this title.
EFFECTIVE DATE OF 2000 AMENDMENT
Pub. L. 106-554, Sec. 1(a)(4) [div. A, Sec. 213(b)], Dec. 21,
2000, 114 Stat. 2763, 2763A-180, provided that: "The amendments
made by this section [amending this section, section 10601 of this
title, and section 2709 of Title 22, Foreign Relations and
Intercourse, repealing section 1320b-23 of this title, amending
provisions set out as notes under sections 4001 and 4013 of Title
18, Crimes and Criminal Procedure, and section 524 of Title 28,
Judiciary and Judicial Procedure, and repealing provisions set out
as notes under this section and sections 1305 and 1320b-23 of this
title] shall take effect as if included in H.R. 4942 of the 106th
Congress [Pub. L. 106-553] on the date of its enactment [Dec. 21,
2000]."
Pub. L. 106-553, Sec. 1(a)(2) [title VI, Sec. 635(c)(2)(3)], Dec.
21, 2000, 114 Stat. 2762, 2762A-117, which provided that the
amendments made by Sec. 1(a)(2) [title VI, Sec. 635(c)] of Pub. L.
106-553, enacting section 1320b-23 of this title and amending this
section, would apply with respect to violations occurring on and
after the date that is 2 years after Dec. 21, 2000, was repealed by
Pub. L. 106-554, Sec. 1(a)(4) [div. A, Sec. 213(a)(6)], Dec. 21,
2000, 114 Stat. 2763, 2763A-180, see above.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by section 107(a)(4) of Pub. L. 103-296 effective Mar.
31, 1995, see section 110(a) of Pub. L. 103-296, set out as a note
under section 401 of this title.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 5130(a)(1) of Pub. L. 101-508 effective as
if included in the enactment of Pub. L. 100-690, Sec. 7088, see
section 5130(b) of Pub. L. 101-508, set out as a note under section
1402 of Title 26, Internal Revenue Code.
EFFECTIVE DATE OF 1984 AMENDMENTS
Amendment by Pub. L. 98-460 effective Oct. 9, 1984, and
applicable with respect to violations occurring on or after such
date, see section 16(d) of Pub. L. 98-460, set out as a note under
section 405 of this title.
Amendment by Pub. L. 98-369 effective July 18, 1984, but not to
be construed as changing or affecting any right, liability, status,
or interpretation which existed (under the provisions of law
involved) before that date, see section 2664(b) of Pub. L. 98-369,
set out as a note under section 401 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 4(c) of Pub. L. 97-123 provided that: "The amendments
made by subsections (a) and (b) [amending this section] shall be
effective with respect to violations committed after the date of
the enactment of this Act [Dec. 29, 1981]."
EFFECTIVE DATE OF 1972 AMENDMENT
Section 130(b) of Pub. L. 92-603 provided that: "The amendments
made by subsection (a) [amending this section] shall apply with
respect to information furnished to the Secretary after the date of
the enactment of this Act [Oct. 30, 1972]."
EFFECTIVE DATE OF 1960 AMENDMENT
Amendment by Pub. L. 86-778 effective in the manner provided in
section 211(p), (q) of Pub. L. 86-778, section 211(s) of Pub. L.
86-778, set out as a note under section 403 of this title.
EFFECTIVE DATE OF 1939 AMENDMENT
Section 201 of act Aug. 10, 1939, provided that the amendment
made by that section is effective Jan. 1, 1940.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 405, 1007, 1320b-6, 1383,
1383a of this title; title 30 section 923.
