7 CFR 1466.55 – Misrepresentation and scheme or device
(a) A person, joint operation, legal entity, or Indian Tribe that is determined to have erroneously represented any fact affecting a program determination made in accordance with this part will not be entitled to contract payments and must refund to NRCS all payments, plus interest, determined in accordance with 7 CFR part 1403.
(b) A producer who is determined to have knowingly—
(1) Adopted any scheme or device that tends to defeat the purpose of the program;
(2) Made any fraudulent representation;
(3) Adopted any scheme or device for the purpose of depriving any tenant or sharecropper of the payments to which such person would otherwise be entitled under the program; or
(4) Misrepresented any fact affecting a program determination, will refund to NRCS all payments, plus interest, determined in accordance with 7 CFR part 1403, received by such producer with respect to all contracts. The producer’s interest in all contracts will be terminated.