[Code of Federal Regulations]
[Title 45, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR30.7]

[Page 83-84]
 
                        TITLE 45--PUBLIC WELFARE
 
                           AND HUMAN SERVICES
 
PART 30--CLAIMS COLLECTION--Table of Contents
 
                           Subpart A--General
 
Sec. 30.7  Claims involving criminal activity or misconduct.

    (a) A debtor whose indebtedness involves criminal activity is 
subject to punishment by fine or imprisonment as well as to a civil 
claim by the United States for compensation for the misappropriated 
funds or property. Examples of such activity are fraud, embezzlement and 
theft or misuse of Government money or property. See 18 U.S.C. 641, 643. 
The Secretary will refer cases of suspected criminal activity or 
misconduct to the Office of Inspector General. That office will 
investigate such cases, refer them to the Department of Justice for 
criminal prosecution and/or return them to the Secretary for collection, 
application of administrative sanctions or other disposition.
    (b) Debts involving anti-trust violations, fraud, false claims or 
misrepresentation--
    (1) Shall be referred by the Secretary to the Office of Inspector 
General for review. The Office of Inspector General

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shall refer the claim back to the Secretary for collection or other 
disposition to the extent authorized by the Department of Justice.
    (2) Shall not be compromised, terminated, suspended or otherwise 
disposed of by the Secretary under these regulations. Only the 
Department of Justice is authorized to compromise, terminate, suspend or 
otherwise dispose of such debts.