--- kind: "section" citation: "22 U.S.C. § 2399b" title: "22" title_heading: "Foreign Relations and Intercourse" number: "2399b" heading: "False claims and ineligible commodities" release: "119-102" url: "https://uscodex.org/usc/22/2399b" units: - "Chapter 32 — Foreign Assistance" - "Subchapter III — General and Administrative Provisions" - "Part II — Administrative Provisions" --- # §2399b. False claims and ineligible commodities - (a) **Penalties; costs—** Any [person](#c) who makes or causes to be made or presents or causes to be presented to any bank or other financial institution or to any officer, agent, or [employee](/usc/22/4341.md?p=1) of any [agency of the United States Government](/usc/22/2403.md?p=a) a claim for payment from [funds](/usc/22/2431a.md?p=9) made available under this chapter for the purposes of furnishing assistance and who knows the claim to be false, fraudulent, or fictitious or to cover a [commodity](/usc/22/2403.md?p=c) or [commodity](/usc/22/2403.md?p=c)-related service determined by the President to be ineligible for payment from [funds](/usc/22/2431a.md?p=9) made available under this chapter, or who uses to support his claim any certification, statement, or entry on any contract, abstract, bill of lading, Government or commercial invoice, or Government form, which he knows, or in the exercise of prudent business management should know, to contain false, fraudulent, or fictitious information, or who uses or engages in any other fraudulent trick, scheme, or device for the purpose of securing or obtaining, or aiding to secure or obtain, for any [person](#c) any benefit or payment from [funds](/usc/22/2431a.md?p=9) so made available under this chapter in connection with the negotiation, procurement, award, or performance of a contract financed with [funds](/usc/22/2431a.md?p=9) so made available under this chapter, and any [person](#c) who enters into an [agreement](/usc/22/2431a.md?p=7), combination, or conspiracy so to do, (1) shall pay to the [United States](/usc/22/1395.md?p=a-1) an amount equal to 25 per centum of any amount thereby sought to be wrongfully secured or obtained but not actually received, and (2) shall forfeit and refund any payment, compensation, loan, [commission](/usc/22/277d–43.md?p=2), or advance received as a result thereof, and (3) shall, in addition, pay to the [United States](/usc/22/1395.md?p=a-1) for each such act (A) the sum of $2,000 and double the amount of any damage which the [United States](/usc/22/1395.md?p=a-1) may have sustained by reason thereof, or (B) an amount equal to 50 per centum of any such payment, compensation, loan, [commission](/usc/22/277d–43.md?p=2), or advance so received, whichever is the greater, together with the costs of suit. - (b) **Recovery of penalties; procedure; finality of withholding of funds; recovery of withheld funds; limitation period—** In order to secure recovery under this section, the President may, as he deems appropriate, (1) institute suit in the [United States](/usc/22/1395.md?p=a-1) district court for any judicial district in which the [person](#c) alleged to have performed or participated in an act described by this section may reside or may be found, and (2) upon posting by registered mail to such [person](#c) a notice of claim describing the basis therefor and identifying the [funds](/usc/22/2431a.md?p=9) to be withheld, withhold from [funds](/usc/22/2431a.md?p=9) owed by any [agency of the United States Government](/usc/22/2403.md?p=a) to such [person](#c) an amount equal to the refund, damages, liquidated damages, and exemplary damages claimed by the [United States](/usc/22/1395.md?p=a-1) under this section. Any such withholding of [funds](/usc/22/2431a.md?p=9) from any [person](#c) shall constitute a final determination of the rights and liabilities of such [person](#c) under this section with respect to the amount so withheld, unless within one year of receiving the notice of claim such [person](#c) brings suit for recovery, which is hereby authorized, against the [United States](/usc/22/1395.md?p=a-1) in any [United States](/usc/22/1395.md?p=a-1) district court. - (c) **“Person” defined—** For purposes of this section, the term “person” includes any individual, [corporation](/usc/22/7702.md?p=6), partnership, association, or other legal entity. ## Source credit (Pub. L. 87–195, pt. III, § 640A, as added Pub. L. 90–554, pt. III, § 302(f), Oct. 8, 1968, 82 Stat. 965.) ## Notes ### Editorial Notes ### References in Text This chapter, referred to in subsec. (a), was in the original “this Act”, meaning Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, known as the Foreign Assistance Act of 1961. For complete classification of this Act to the Code, see Short Title note set out under section 2151 of this title and Tables. ### Executive Documents ### Delegation of Functions For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title.