[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1469]

[Page 713]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1469_CONSERVATION SECURITY PROGRAM--Table of Contents
 
                    Subpart C_General Administration
 
Sec.  1469.36  Misrepresentation and scheme or device.

    (a) If the Department determines that a participant erroneously 
represented any fact affecting a CSP determination made in accordance 
with this part, the participant's conservation stewardship contract will 
be terminated immediately in accordance with Sec.  1469.25(b). The 
participant will forfeit all rights for future contract payments, and 
must refund payments received, plus interest, and liquidated damages as 
described in Sec.  1469.25.
    (b) A producer who is determined to have knowingly:
    (1) Adopted any scheme or device that tends to defeat the purpose of 
CSP;
    (2) Made any fraudulent representation; or
    (3) Misrepresented any fact affecting a CSP determination, must 
refund to NRCS all payments, plus interest, and liquidated damages as 
determined in accordance with Sec.  1469.25 received by such participant 
with respect to all contracts. In addition, NRCS will terminate the 
participant's interest in all conservation stewardship contracts.
    (c) If the producer acquires land subsequent to enrollment in CSP, 
that land is not considered part of the agricultural operation; however, 
if the land was previously owned or controlled by them before the date 
of enrollment and after May 13, 2002, then NRCS will conduct an 
investigation into the activity to see if there was a scheme or device.