H.R. 10922: Fraud Accountability and Mandatory Sentencing Act

This bill would create new penalties for certain fraud-related crimes tied to government benefits and state-administered programs, and it would also make state officials and employees personally liable in some cases if they knowingly fail to stop fraud.

Personal liability for state officials

The bill says it would be unlawful for a state officer or employee who knows that fraud is happening in the administration or use of a “covered benefit,” and who has the power to help stop it, to fail to act.

If the Attorney General sues such a person in federal court and wins, the court could order damages based on the amount of loss:

• For losses of $500,000 or less, damages could not exceed the amount of the loss.
• For losses above $500,000, damages could be up to three times the amount of the loss.

The bill also says that legal immunities usually available to public officials for actions taken within the scope of their jobs would not apply in these cases.

Programs covered

The bill’s rules would apply to fraud involving benefits under several federal or federally funded programs, including:

• SNAP food benefits
• Social Security old-age, survivors, and disability insurance
• State unemployment compensation programs funded under federal law
• Supplemental Security Income
• Medicare
• Medicaid and Medicaid waivers
• Child care block grant programs
• Any other program that provides funds to states

New mandatory prison sentences for fraud offenses

The bill would add a new federal sentencing rule for certain fraud crimes when they involve one of the covered benefits listed above. For crimes committed after the bill becomes law, judges would have to impose at least these prison terms:

• Loss under $40,000: at least 1 year
• Loss of $40,000 to under $250,000: at least 2 years
• Loss of $250,000 to under $5 million: at least 5 years
• Loss of $5 million to under $50 million: at least 10 years
• Loss of $50 million to under $100 million: at least 15 years
• Loss of $100 million or more: at least 20 years

These sentences could go up to life in prison.

Repeat offenders

If someone is convicted again for a covered fraud offense after a prior conviction becomes final, the required prison term would be doubled.

No probation or suspended sentence

The bill would prohibit courts from placing someone on probation or suspending the sentence for a person sentenced under this section.

How loss would be measured

For both the civil and criminal parts of the bill, “loss” would mean the greater of:

• actual loss,
• intended loss, or
• the gain made from the fraud.

The bill defines actual loss as the reasonably foreseeable money harm caused by the fraud, and intended loss as the harm the fraudster meant to cause, even if that harm would not have happened.

Relevant Companies

None found