
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-553 Section 1(a)(2)]
[Document affected by Public Law 106-554 Section 1(a)(4)]
[Document affected by Public Law 106-553 Section 1(a)(2)]
[Document affected by Public Law 106-554 Section 1(a)(4)[213(b)]]
[Document affected by Public Law 106-554 Section 1(a)(4)]
[CITE: 42USC408]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
  SUBCHAPTER II--FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE 
                                BENEFITS
 
Sec. 408. Penalties


(a) In general

    Whoever--
        (1) for the purpose of causing an increase in any payment 
    authorized to be made under this subchapter, or for the purpose of 
    causing any payment to be made where no payment is authorized under 
    this subchapter, shall make or cause to be made any false statement 
    or representation (including any false statement or representation 
    in connection with any matter arising under subchapter E of chapter 
    1, or subchapter A or E of chapter 9 of the Internal Revenue Code of 
    1939, or chapter 2 or 21 or subtitle F of the Internal Revenue Code 
    of 1954) as to--
            (A) whether wages were paid or received for employment (as 
        said terms are defined in this subchapter and the Internal 
        Revenue Code), or the amount of wages or the period during which 
        paid or the person to whom paid; or
            (B) whether net earnings from self-employment (as such term 
        is defined in this subchapter and in the Internal Revenue Code) 
        were derived, or as to the amount of such net earnings or the 
        period during which or the person by whom derived; or
            (C) whether a person entitled to benefits under this 
        subchapter had earnings in or for a particular period (as 
        determined under section 403(f) of this title for purposes of 
        deductions from benefits), or as to the amount thereof; or

        (2) makes or causes to be made any false statement or 
    representation of a material fact in any application for any payment 
    or for a disability determination under this subchapter; or
        (3) at any time makes or causes to be made any false statement 
    or representation of a material fact for use in determining rights 
    to payment under this subchapter; or
        (4) having knowledge of the occurrence of any event affecting 
    (1) his initial or continued right to any payment under this 
    subchapter, or (2) the initial or continued right to any payment of 
    any other individual in whose behalf he has applied for or is 
    receiving such payment, conceals or fails to disclose such event 
    with an intent fraudulently to secure payment either in a greater 
    amount than is due or when no payment is authorized; or
        (5) having made application to receive payment under this 
    subchapter for the use and benefit of another and having received 
    such a payment, knowingly and willfully converts such a payment, or 
    any part thereof, to a use other than for the use and benefit of 
    such other person; or
        (6) willfully, knowingly, and with intent to deceive the 
    Commissioner of Social Security as to his true identity (or the true 
    identity of any other person) furnishes or causes to be furnished 
    false information to the Commissioner of Social Security with 
    respect to any information required by the Commissioner of Social 
    Security in connection with the establishment and maintenance of the 
    records provided for in section 405(c)(2) of this title; or
        (7) for the purpose of causing an increase in any payment 
    authorized under this subchapter (or any other program financed in 
    whole or in part from Federal funds), or for the purpose of causing 
    a payment under this subchapter (or any such other program) to be 
    made when no payment is authorized thereunder, or for the purpose of 
    obtaining (for himself or any other person) any payment or any other 
    benefit to which he (or such other person) is not entitled, or for 
    the purpose of obtaining anything of value from any person, or for 
    any other purpose--
            (A) willfully, knowingly, and with intent to deceive, uses a 
        social security account number, assigned by the Commissioner of 
        Social Security (in the exercise of the Commissioner's authority 
        under section 405(c)(2) of this title to establish and maintain 
        records) on the basis of false information furnished to the 
        Commissioner of Social Security by him or by any other person; 
        or
            (B) with intent to deceive, falsely represents a number to 
        be the social security account number assigned by the 
        Commissioner of Social Security to him or to another person, 
        when in fact such number is not the social security account 
        number assigned by the Commissioner of Social Security to him or 
        to such other person; or
            (C) knowingly alters a social security card issued by the 
        Commissioner of Social Security, buys or sells a card that is, 
        or purports to be, a card so issued, counterfeits a social 
        security card, or possesses a social security card or 
        counterfeit social security card with intent to sell or alter 
        it; or

        (8) discloses, uses, or compels the disclosure of the social 
    security number of any person in violation of the laws of the United 
    States;

shall be guilty of a felony and upon conviction thereof shall be fined 
under title 18 or imprisoned for not more than five years, or both.

(b) Violations by certified payees

    Any person or other entity who is convicted of a violation of any of 
the provisions of this section, if such violation is committed by such 
person or entity in his role as, or in applying to become, a certified 
payee under section 405(j) of this title on behalf of another individual 
(other than such person's spouse), upon his second or any subsequent 
such conviction shall, in lieu of the penalty set forth in the preceding 
provisions of this section, be guilty of a felony and shall be fined 
under title 18 or imprisoned for not more than five years, or both. In 
the case of any violation described in the preceding sentence, including 
a first such violation, if the court determines that such violation 
includes a willful misuse of funds by such person or entity, the court 
may also require that full or partial restitution of such funds be made 
to the individual for whom such person or entity was the certified 
payee.

(c) Effect upon certification as payee; definitions

    Any individual or entity convicted of a felony under this section or 
under section 1383a(b) of this title may not be certified as a payee 
under section 405(j) of this title. For the purpose of subsection (a)(7) 
of this section, the terms ``social security number'' and ``social 
security account number'' mean such numbers as are assigned by the 
Commissioner of Social Security under section 405(c)(2) of this title 
whether or not, in actual use, such numbers are called social security 
numbers.

(d) Application of subsection (a)(6) and (7) to certain aliens

    (1) Except as provided in paragraph (2), an alien--
        (A) whose status is adjusted to that of lawful temporary 
    resident under section 1160 or 1255a of title 8 or under section 902 
    of the Foreign Relations Authorization Act, Fiscal Years 1988 and 
    1989,
        (B) whose status is adjusted to that of permanent resident--
            (i) under section 202 of the Immigration Reform and Control 
        Act of 1986, or
            (ii) pursuant to section 1259 of title 8, or

        (C) who is granted special immigrant status under section 
    1101(a)(27)(I) of title 8,

shall not be subject to prosecution for any alleged conduct described in 
paragraph (6) or (7) of subsection (a) of this section if such conduct 
is alleged to have occurred prior to 60 days after November 5, 1990.
    (2) Paragraph (1) shall not apply with respect to conduct (described 
in subsection (a)(7)(C) of this section) consisting of--
        (A) selling a card that is, or purports to be, a social security 
    card issued by the Commissioner of Social Security,
        (B) possessing a social security card with intent to sell it, or
        (C) counterfeiting a social security card with intent to sell 
    it.

    (3) Paragraph (1) shall not apply with respect to any criminal 
conduct involving both the conduct described in subsection (a)(7) of 
this section to which paragraph (1) applies and any other criminal 
conduct if such other conduct would be criminal conduct if the conduct 
described in subsection (a)(7) of this section were not committed.

(Aug. 14, 1935, ch. 531, title II, Sec. 208, 49 Stat. 625; Aug. 10, 
1939, ch. 666, title II, Sec. 201, 53 Stat. 1362, 1372; Aug. 28, 1950, 
ch. 809, title I, Sec. 109(c), 64 Stat. 523; Sept. 1, 1954, ch. 1206, 
title I, Sec. 111(b), 68 Stat. 1085; Pub. L. 85-840, title III, 
Sec. 310, Aug. 28, 1958, 72 Stat. 1034; Pub. L. 86-778, title II, 
Sec. 211(m), Sept. 13, 1960, 74 Stat. 958; Pub. L. 92-603, title I, 
Sec. 130(a), Oct. 30, 1972, 86 Stat. 1359; Pub. L. 94-455, title XII, 
Sec. 1211(a), (d), Oct. 4, 1976, 90 Stat. 1711, 1712; Pub. L. 97-123, 
Sec. 4(a), (b), Dec. 29, 1981, 95 Stat. 1663, 1664; Pub. L. 98-369, div. 
B, title VI, Sec. 2663(a)(5), July 18, 1984, 98 Stat. 1162; Pub. L. 98-
460, Sec. 16(c)(2), Oct. 9, 1984, 98 Stat. 1811; Pub. L. 100-690, title 
VII, Sec. 7088, Nov. 18, 1988, 102 Stat. 4409; Pub. L. 101-508, title V, 
Secs. 5121, 5130(a)(1), Nov. 5, 1990, 104 Stat. 1388-283, 1388-289; Pub. 
L. 103-296, title I, Sec. 107(a)(4), title III, Sec. 321(a)(12), Aug. 
15, 1994, 108 Stat. 1478, 1536.)

                       References in Text

    Subchapter E of chapter 1 and subchapters A and E of chapter 9 of 
the Internal Revenue Code of 1939, referred to in subsec. (a)(1), were 
comprised of sections 480-482, 1400-1432, and 1630-1636, respectively, 
and were repealed (subject to certain exceptions) by section 
7851(a)(1)(A), (3) of Title 26, Internal Revenue Code of 1954 (act Aug. 
16, 1954, ch. 736, 68A Stat. 3). The I.R.C. 1954 was redesignated I.R.C. 
1986 by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.
    For provision deeming a reference in other laws to a provision of 
the 1939 Code as a reference to the corresponding provisions of the 1986 
Code, see section 7852(b) of the 1986 Code. For table of comparisons of 
the 1939 Code to the 1986 Code, see table preceding section 1 of Title 
26, Internal Revenue Code. The Internal Revenue Code of 1986 is 
classified generally to Title 26.
    Chapters 2 and 21 and subtitle F of the Internal Revenue Code of 
1954, referred to in subsec. (a)(1), were redesignated chapters 2 and 21 
and subtitle F of the Internal Revenue Code of 1986, and are classified 
to sections 1401 et seq., 3101 et seq., and 6001 et seq., respectively, 
of Title 26.
    Section 902 of the Foreign Relations Authorization Act, Fiscal Years 
1988 and 1989, referred to in subsec. (d)(1)(A), is section 902 of Pub. 
L. 100-204, which is set out as a note under section 1255a of Title 8, 
Aliens and Nationality.
    Section 202 of the Immigration Reform and Control Act of 1986, 
referred to in subsec. (d)(1)(B)(i), is section 202 of Pub. L. 99-603, 
which is set out as a note under section 1255a of Title 8.


                               Amendments

    1994--Subsec. (a)(6), (7). Pub. L. 103-296, Sec. 107(a)(4), 
substituted ``Commissioner of Social Security'' for ``Secretary'' 
wherever appearing and ``the Commissioner's authority'' for ``his 
authority'' in par. (7)(A).
    Subsec. (c). Pub. L. 103-296, Sec. 321(a)(12), substituted 
``subsection (a)(7)'' for ``subsection (g)''.
    Pub. L. 103-296, Sec. 107(a)(4), substituted ``Commissioner of 
Social Security'' for ``Secretary''.
    Subsec. (d)(2)(A). Pub. L. 103-296, Sec. 107(a)(4), substituted 
``Commissioner of Social Security'' for ``Secretary''.
    1990--Pub. L. 101-508, Sec. 5121, inserted ``(a)'' before 
``Whoever--'', redesignated former subsecs. (a) to (h) as pars. (1) to 
(8), respectively, of subsec. (a), in pars. (1) and (7) redesignated 
former pars. (1) to (3) as subpars. (A) to (C), respectively, inserted 
``(b)'' before ``Any person or other entity who is convicted'', inserted 
``(c)'' before ``Any individual or entity convicted of a felony'', and 
added subsec. (d).
    Pub. L. 101-508, Sec. 5130(a)(1), in the last undesignated paragraph 
substituted ``section 405(c)(2) of this title'' for ``section 605(c)(2) 
of this title''.
    1988--Pub. L. 100-690 substituted ``under title 18'' for ``not more 
than $5,000'' in first undesignated par., substituted ``under title 18'' 
for ``not more than $25,000'' in second undesignated par., and inserted 
provisions at end defining for purposes of subsec. (g) ``social security 
number'' and ``social security account number''.
    1984--Pub. L. 98-460 inserted provisions imposing a penalty of 
$25,000 or imprisonment for not more than five years, or both, on any 
person or other entity convicted for a second or subsequent violation of 
this section, if such violation is committed by such person or entity in 
his role as, or in applying to become, a certified payee under section 
405(j) of this title, and also granting the court discretion, in any 
case, including a first offense, involving a willful misuse of funds, to 
require full or partial restitution, and prohibiting the certification 
of any individual or entity convicted of a felony under this section or 
under section 1383a(b) of this title.
    Subsecs. (f) to (h). Pub. L. 98-369 realigned margins of subsecs. 
(f) to (h).
    1981--Pub. L. 97-123 substituted provisions making violation of 
section a felony for provisions making it a misdemeanor, increased the 
punishment from one to five years and penalty from $1,000 to $5,000, and 
in subsec. (g), in opening paragraph, substituted ``or for the purpose 
of obtaining anything of value from any person, or for any other 
purpose'' for ``or for any other purpose'', and added par. (3).
    1976--Subsec. (g). Pub. L. 94-455, Sec. 1211(a), inserted ``, or for 
any other purpose'' after ``entitled'' in provisions preceding cl. (1).
    Subsec. (h). Pub. L. 94-455, Sec. 1211(d)(1), added subsec. (h).
    1972--Subsecs. (f), (g). Pub. L. 92-603 added subsecs. (f) and (g).
    1960--Subsec. (a)(3). Pub. L. 86-778 substituted ``section 403(f) of 
this title'' for ``section 403(e) of this title''.
    1958--Pub. L. 85-840 amended section generally, by, among other 
changes, inserting references to the Internal Revenue Code of 1954, and 
making penalty provisions applicable to cases (1) where false statements 
or representations as to whether wages were paid or received for 
employment, or whether net earnings from self-employment were derived, 
or whether a person entitled to benefits under this subchapter had 
earnings in or for a particular period, or as to the amount thereof, are 
made for the purpose of obtaining or increasing benefits; (2) where 
false statements or representations are made in any application for 
disability determination; (3) where a person intentionally conceals or 
fails to disclose knowledge of any event affecting his or another's 
initial or continued right to payment, and (4) where a person converts a 
payment that he received for the use and benefit of another.
    1954--Act Sept. 1, 1954, made it clear that the penalty provisions 
of the section extend to cases of false statements or representations as 
to the amount of net earnings from self-employment derived or the period 
during which derived.
    1950--Act Aug. 28, 1950, substituted ``subchapter E of chapter 1, or 
subchapter A or E of chapter 9 of the Internal Revenue Code of 1939'' 
for ``the Federal Insurance Contributions Act''.
    1939--Act Aug. 10, 1939, amended section generally, incorporating 
provisions of section 409 of this title.


                    Effective Date of 1994 Amendment

    Amendment by section 107(a)(4) of Pub. L. 103-296 effective Mar. 31, 
1995, see section 110(a) of Pub. L. 103-296, set out as a note under 
section 401 of this title.


                    Effective Date of 1990 Amendment

    Amendment by section 5130(a)(1) of Pub. L. 101-508 effective as if 
included in the enactment of Pub. L. 100-690, Sec. 7088, see section 
5130(b) of Pub. L. 101-508, set out as a note under section 1402 of 
Title 26, Internal Revenue Code.


                    Effective Date of 1984 Amendments

    Amendment by Pub. L. 98-460 effective Oct. 9, 1984, and applicable 
with respect to violations occurring on or after such date, see section 
16(d) of Pub. L. 98-460, set out as a note under section 405 of this 
title.
    Amendment by Pub. L. 98-369 effective July 18, 1984, but not to be 
construed as changing or affecting any right, liability, status, or 
interpretation which existed (under the provisions of law involved) 
before that date, see section 2664(b) of Pub. L. 98-369, set out as a 
note under section 401 of this title.


                    Effective Date of 1981 Amendment

    Section 4(c) of Pub. L. 97-123 provided that: ``The amendments made 
by subsections (a) and (b) [amending this section] shall be effective 
with respect to violations committed after the date of the enactment of 
this Act [Dec. 29, 1981].''


                    Effective Date of 1972 Amendment

    Section 130(b) of Pub. L. 92-603 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply with respect 
to information furnished to the Secretary after the date of the 
enactment of this Act [Oct. 30, 1972].''


                    Effective Date of 1960 Amendment

    Amendment by Pub. L. 86-778 effective in the manner provided in 
section 211(p), (q) of Pub. L. 86-778, section 211(s) of Pub. L. 86-778, 
set out as a note under section 403 of this title.


                    Effective Date of 1939 Amendment

    Section 201 of act Aug. 10, 1939, provided that the amendment made 
by that section is effective Jan. 1, 1940.

                  Section Referred to in Other Sections

    This section is referred to in sections 405, 1007, 1320b-6, 1383, 
1383a of this title; title 30 section 923.
