[Code of Federal Regulations]
[Title 6, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 6CFR13.10]

[Page 57-58]
 
                       TITLE 6--HOMELAND SECURITY
 
   CHAPTER I--DEPARTMENT OF HOMELAND SECURITY, OFFICE OF THE SECRETARY
 
PART 13_PROGRAM FRAUD CIVIL REMEDIES--Table of Contents
 
Sec.  13.10  Default upon failure to answer.

    (a) If the Defendant does not answer within the time prescribed in 
Sec.  13.9(a), the Reviewing Official may refer the Complaint to an ALJ 
by filing the Complaint and a Statement that Defendant has failed to 
answer on time.
    (b) Upon the referral of the Complaint, the ALJ will promptly serve 
on Defendant in the manner prescribed in Sec.  13.8, a notice that an 
Initial Decision will be issued under this section.
    (c) In addition, the ALJ will assume the facts alleged in the 
Complaint to be true, and, if such facts establish liability under Sec.  
13.3, the ALJ will issue an Initial Decision imposing the maximum amount 
of penalties and assessments allowed under the statute.

[[Page 58]]

    (d) Except as otherwise provided in this section, by failing to 
answer on time, the Defendant waives any right to further review of the 
penalties and assessments imposed under paragraph (c) of this section, 
and the Initial Decision will become final and binding upon the parties 
30 days after it is issued.
    (e) If, before such an Initial Decision becomes final, the Defendant 
files a motion seeking to reopen on the grounds that extraordinary 
circumstances prevented the Defendant from answering, the Initial 
Decision will be stayed pending the ALJ's decision on the motion.
    (f) If, on such motion, the Defendant can demonstrate extraordinary 
circumstances excusing the failure to answer on time, the ALJ will 
withdraw the Initial Decision in paragraph (c) of this section, if such 
a decision has been issued, and will grant the Defendant an opportunity 
to answer the Complaint.
    (g) A decision of the ALJ denying a Defendant's motion under 
paragraph (e) of this section is not subject to reconsideration under 
Sec.  13.38.
    (h) The Defendant may appeal to the Authority Head the decision 
denying a motion to reopen by filing a notice of appeal in accordance 
with Sec.  13.26 within 15 days after the ALJ denies the motion. The 
timely filing of a notice of appeal will stay the Initial Decision until 
the Authority Head decides the issue.
    (i) If the Defendant files a timely notice of appeal with the 
Authority Head, the ALJ will forward the record of the proceeding to the 
Authority Head.
    (j) The Authority Head will decide expeditiously whether 
extraordinary circumstances excuse the Defendant's failure to answer on 
time based solely on the record before the ALJ.
    (k) If the Authority Head decides that extraordinary circumstances 
excused the Defendant's failure to answer on time, the Authority Head 
will remand the case to the ALJ with instructions to grant the Defendant 
an opportunity to answer.
    (l) If the Authority Head decides that the Defendant's failure to 
answer on time is not excused, the Authority Head will reinstate the 
Initial Decision of the ALJ, which will become final and binding upon 
the parties 30 days after the Authority Head issues such decision.