[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR28.10]



[Page 304-305]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 28_IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF 1986

--Table of Contents

 

Sec.  28.10  Basis for civil penalties and assessments.



    (a) Claims. A civil penalty of not more than $6,500 may be imposed 

upon a person who makes a claim that the person knows or has reason to 

know:

    (i) Is false, fictitious, or fraudulent;

    (ii) Includes or is supported by a written statement that either 

contains a material fact that is false, fictitious, or fraudulent; or 

omits a material fact that the person has a duty to include and is 

false, fictitious, or fraudulent as a result of the omission; or

    (iii) Is for payment for the provision of property or services that 

the person has not provided as claimed.

    (2) Each voucher, invoice, claim form, or other individual request 

or demand for property, services, or money constitutes a separate claim.

    (3) A claim shall be considered made to HUD, to a recipient, or to a 

party when the claim actually is made to an agent, fiscal intermediary, 

or other entity, including any State or political subdivision of a 

State, acting for or on behalf of HUD, the recipient, or the party.

    (4) Each claim for property, services, or money is subject to a 

civil penalty without regard to whether the property, services, or money 

actually is delivered or paid.

    (5) Liability under this part shall not lie if the amount of money 

or value of property or services claimed exceeds $150,000 as to each 

claim that a person submits. For purposes of paragraph (a) of this 

section, a group of claims submitted simultaneously as part of a single 

transaction shall be considered a single claim.

    (6) If the Government has made any payment, transferred property, or 

provided services on a claim, then the Government may assess a person 

found liable up to twice the amount of the claim or portion of the claim 

that is determined to be in violation of paragraph (a)(1) of this 

section.

    (b) Statements. (1) A civil penalty of up to $6,500 may be imposed 

upon a person who makes a written statement that:

    (i) The person knows, or has reason to know, contains a material 

fact that is false, fictitious, or fraudulent; or omits a material fact 

that the person has a duty to include and is false, fictitious, or 

fraudulent because of that omission; and

    (ii) Contains or is accompanied by an express certification or 

affirmation of the truthfulness and accuracy of the contents of the 

statement.

    (2) Each written representation, certification, or affirmation 

constitutes a separate statement.

    (3) A statement shall be considered made to HUD when the statement 

is



[[Page 305]]



actually made to an agent, fiscal intermediary, or other entity, 

including any State or political subdivision of a State, acting for or 

on behalf of HUD.

    (c) Limit on liability. If the claim or statement relates to low-

income housing benefits or housing benefits for the elderly or 

handicapped, then a person may be held liable only if he or she has made 

the claim or statement in the course of applying for such benefits, with 

respect to his or her eligibility, or family's eligibility, to receive 

such benefits. For purposes of paragraph (c) of this section, ``housing 

benefits'' means any instance wherein funds administered by the 

Secretary directly or indirectly permit low-income families or elderly 

or handicapped persons to reside in housing that otherwise would not be 

available to them.

    (d) Specific intent. No proof of specific intent to defraud is 

required to establish liability under this section.

    (e) Joint and several liability. A civil penalty or assessment may 

be imposed jointly and severally if more than one person is determined 

to be liable.



[61 FR 50213, Sept. 24, 1996, as amended at 68 FR 12787, Mar. 17, 2003]