42 USC 3215 – Penalties
(a) False statements; security overvaluation
A person that makes any statement that the person knows to be false, or willfully overvalues any security, for the purpose of—
(1) obtaining for the person or for any applicant any financial assistance under this chapter or any extension of the assistance by renewal, deferment, or action, or by any other means, or the acceptance, release, or substitution of security for the assistance;
(2) influencing in any manner the action of the Secretary; or
(3) obtaining money, property, or any thing of value, under this chapter;
shall be fined under title 18, imprisoned not more than 5 years, or both.
(b) Embezzlement and fraud-related crimes
Terms Used In 42 USC 3215
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- officer: includes any person authorized by law to perform the duties of the office. See 1 USC 1
A person that is connected in any capacity with the Secretary in the administration of this chapter and that—
(1) embezzles, abstracts, purloins, or willfully misapplies any funds, securities, or other thing of value, that is pledged or otherwise entrusted to the person;
(2) with intent to defraud the Secretary or any other person or entity, or to deceive any officer, auditor, or examiner—
(A) makes any false entry in any book, report, or statement of or to the Secretary; or
(B) without being duly authorized, draws any order or issue, puts forth, or assigns any note, debenture, bond, or other obligation, or draft, bill of exchange, mortgage, judgment, or decree thereof;
(3) with intent to defraud, participates or shares in or receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, grant, commission, contract, or any other act of the Secretary; or
(4) gives any unauthorized information concerning any future action or plan of the Secretary that 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, grants, or other assistance from the Secretary;
shall be fined under title 18, imprisoned not more than 5 years, or both.