2127. Fraud

2127.1 What are the penalties for fraud?

Penalties for fraud include possible fines and imprisonment.

2127.2 What actions are considered fraudulent?

Penalties are imposed if a person with intent to defraud:

1. Willfully and knowingly deceives, misleads, or threatens any claimant, prospective claimant, or beneficiary regarding benefits by word, circular, letter, or advertisement;

2. Knowingly charges or collects, whether directly or indirectly, any fee more than the maximum fee set by the Commissioner of Social Security;

3. Makes false statements or misrepresentations in applying for benefits;

4. Makes false statements or misrepresentations of material facts at any time if for use in determining benefit rights;

5. Conceals, or fails to reveal, information about events affecting initial or continued right to benefits or the amount of payment; or

6. Converts payments received on behalf of another to a use other than for the use and benefit of the eligible person.

Last Revised: March, 2001