(a) False statements; security overvaluationA person that makes any statement that the person knows to be false, or willfully overvalues any security, for the purpose of-
(1) obtaining for the person or for any applicant any financial assistance under this chapter or any extension of the assistance by renewal, deferment, or action, or by any other means, or the acceptance, release, or substitution of security for the assistance;(2) influencing in any manner the action of the Secretary; or(3) obtaining money, property, or any thing of value, under this chapter;shall be fined under title 18, imprisoned not more than 5 years, or both.
(b) Embezzlement and fraud-related crimesA person that is connected in any capacity with the Secretary in the administration of this chapter and that-
(1) embezzles, abstracts, purloins, or willfully misapplies any funds, securities, or other thing of value, that is pledged or otherwise entrusted to the person;(2) with intent to defraud the Secretary or any other person or entity, or to deceive any officer, auditor, or examiner-(A) makes any false entry in any book, report, or statement of or to the Secretary; or(B) without being duly authorized, draws any order or issue, puts forth, or assigns any note, debenture, bond, or other obligation, or draft, bill of exchange, mortgage, judgment, or decree thereof;(3) with intent to defraud, participates or shares in or receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, grant, commission, contract, or any other act of the Secretary; or(4) gives any unauthorized information concerning any future action or plan of the Secretary that might affect the value of securities, or having such knowledge invests or speculates, directly or indirectly, in the securities or property of any company or corporation receiving loans, grants, or other assistance from the Secretary;shall be fined under title 18, imprisoned not more than 5 years, or both.
Pub. L. 89-136, title VI, §605, as added Pub. L. 105-393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3614.EDITORIAL NOTES
PRIOR PROVISIONSA prior section 3215, Pub. L. 89-136, title VII, §705, Aug. 26, 1965, 79 Stat. 573, related to separability of provisions, prior to repeal by Pub. L. 105-393, §102(b)(3).
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATESection effective Feb. 11, 1999, see section 105 of Pub. L. 105-393 set out as a note under section 3121 of this title.
- grant
- The term "grant" includes a cooperative agreement (within the meaning of chapter 63 of title 31).
- Secretary
- the term "Secretary" means- (A) the Secretary of Education for purposes of subtitle A (other than section 3201),(B) the Secretary of Agriculture for purposes of the amendments made by section 3201, and(C) the Secretary of Health and Human Services for purposes of subtitle B,