[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 34CFR33.3]



[Page 72-73]

 

                           TITLE 34--EDUCATION

 

PART 33_PROGRAM FRAUD CIVIL REMEDIES ACT--Table of Contents

 

Sec.  33.3  Basis for civil penalties and assessments.



    (a) Claims. (1) Any 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 any written statement which asserts 

a material fact which is false, fictitious, or fraudulent;

    (iii) Includes or is supported by any written statement that:

    (A) Omits a material fact;

    (B) Is false, fictitious, or fraudulent as a result of such 

omission; and

    (C) Is a statement in which the person making such statement has a 

duty to include such material fact; or

    (iv) Is for payment for the provision of property or services which 

the person has not provided as claimed;



[[Page 73]]





shall be subject, in addition to any other remedy that may be prescribed 

by law, to a civil penalty of not more than $5,000 for each claim.

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

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

    (3) A claim is considered made to the Department, a recipient, or 

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

or other entity, including any State or political subdivision thereof, 

acting for or on behalf of the Department, a recipient, or party.

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

civil penalty regardless of whether the property, services, or money is 

actually delivered or paid.

    (5) If the Government has made any payment (including transferred 

property or provided services) on a claim, a person subject to a civil 

penalty under paragraph (a)(1) of this section is also subject to an 

assessment of not more than twice the amount of that claim or that 

portion thereof that is determined to be in violation of paragraph 

(a)(1) of this section. The assessment is in lieu of damages sustained 

by the Government because of that claim.



(Authority: 31 U.S.C. 3802(a)(1))



    (b) Statements. (1) Any person who makes a written statement that:

    (i) The person knows or has reason to know:

    (A) Asserts a material fact which is false, fictitious, or 

fraudulent; or

    (B) Is false, fictitious, or fraudulent because it omits a material 

fact that the person making the statement has a duty to include in the 

statement; and

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

affirmation of the truthfulness and accuracy of the contents of the 

statement;



shall be subject, in addition to any other remedy that may be prescribed 

by law, to a civil penalty of not more than $5,000 for each statement.

    (2) Each written representation, certification, or affirmation 

constitutes a separate statement.

    (3) A statement is considered made to the Department when the 

statement is actually made to an agent, fiscal intermediary, or other 

entity, including any State or political subdivision thereof, acting for 

or on behalf of the Department.



(Authority: 31 U.S.C. 3802(a)(2))



    (c) No proof of specific intent to defraud is required to establish 

liability under this section.



(Authority: 31 U.S.C. 3801(5))



    (d) In any case in which it is determined that more than one person 

is liable for making a claim or statement under this section, each of 

those persons may be held liable for a civil penalty under this section.



(Authority: 31 U.S.C. 3802(a))



    (e) In any case in which it is determined that more than one person 

is liable for making a claim under this section of which the Government 

has made payment (including transferred property or provided services), 

an assessment may be imposed against any of those persons or jointly and 

severally against any combination of those persons.



(Authority: 31 U.S.C. 3802(a)(1); 3809)