---
kind: "section"
citation: "42 U.S.C. § 3215"
title: "42"
title_heading: "The Public Health and Welfare"
number: "3215"
heading: "Penalties"
release: "119-102"
url: "https://uscodex.org/usc/42/3215"
units:
  - "Chapter 38 — Public Works and Economic Development"
  - "Subchapter VI — Miscellaneous"
---

# §3215. Penalties

- (a) **False statements; security overvaluation—** A [person](/usc/42/1320a–7k.md?p=d-4-C-i) that makes any statement that the [person](/usc/42/1320a–7k.md?p=d-4-C-i) knows to be false, or willfully overvalues any security, for the purpose of—
  - (1) obtaining for the [person](/usc/42/1320a–7k.md?p=d-4-C-i) 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](/usc/42/9601.md?p=22), or substitution of security for the assistance;
  - (2) influencing in any manner the action of the [Secretary](/usc/42/3122.md?p=13); or
  - (3) obtaining money, property, or any thing of value, under this chapter;

  shall be fined under [title 18](/usc/18.md), imprisoned not more than 5 years, or both.

- (b) **Embezzlement and fraud-related crimes—** A [person](/usc/42/1320a–7k.md?p=d-4-C-i) that is connected in any capacity with the [Secretary](/usc/42/3122.md?p=13) in the administration of this chapter and that—
  - (1) embezzles, abstracts, purloins, or willfully misapplies any [funds](/usc/42/12854.md?p=3), securities, or other thing of value, that is pledged or otherwise entrusted to the [person](/usc/42/1320a–7k.md?p=d-4-C-i);
  - (2) with intent to defraud the [Secretary](/usc/42/3122.md?p=13) or any other [person](/usc/42/1320a–7k.md?p=d-4-C-i) 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](/usc/42/3122.md?p=13); 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](/usc/42/300gg–91.md?p=d-21), 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](/usc/42/3122.md?p=8), [commission](/usc/42/2000ff.md?p=1), contract, or any other act of the [Secretary](/usc/42/3122.md?p=13); or
  - (4) gives any unauthorized information concerning any future action or plan of the [Secretary](/usc/42/3122.md?p=13) 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](/usc/42/2296b–7.md?p=1) receiving loans, [grants](/usc/42/3122.md?p=8), or other assistance from the [Secretary](/usc/42/3122.md?p=13);

  shall be fined under [title 18](/usc/18.md), imprisoned not more than 5 years, or both.


## Source credit

(Pub. L. 89–136, title VI, § 605, as added Pub. L. 105–393, title I, § 102(a), Nov. 13, 1998, 112 Stat. 3614.)

## Notes

### Editorial Notes

### Prior Provisions

A 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 Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.