(e) Failure to collect or pay a tax described in paragraph (c) of this section shall not be grounds for refusing to record the commissioner's deed, for failing to recognize such recordation or for denying enforcement of the deed in any State or Federal court. § 27.50 Redemption rights. The mortgagor or others will have no right to redeem the mortgage after the foreclosure sale. The mortgagor or others will have no right to possession of the security property after the foreclosure sale based on a right of redemption. § 27.55 Record of foreclosure and sale. (a) The deed to the purchaser shall contain the following recitals: (1) A statement that the foreclosed mortgage was held by the Secretary; (2) The details of the service of the Notice of Default and Foreclosure Sale under § 27.15(c), including the names and addresses of persons to whom the Notice was mailed and the dates on which the Notice was mailed, names of newspapers in which and dates on which the Notice was published, and the date on which service by posting was accomplished; (3) A statement that the foreclosure was conducted in accordance with the Act and with the terms of the Notice of Default and Foreclosure Sale; (4) The costs of the foreclosure calculated in accordance with § 27.35; and (5) The name of the successful bidder and the amount of the successful bid. (b) The commissioner may, in his or her discretion, make these recitations in an affidavit or addendum to the deed rather than in the body of the deed. § 27.60 Management and disposition by the Secretary. When the Secretary is the purchaser of the security property, the Secretary shall manage and dispose of it in accordance with section 203 of the Housing and Community Development Amendments of 1978, 12 U.S.C. 1701z11, and in accordance with 24 CFR part 290. answer. 28.21 Referral of complaint and answer to the ALJ. 28.23 Notice of hearing. 28.31 Disqualification of reviewing official or ALJ. 28.33 Rights of parties. 28.43 Exchange of witness lists, statements, and exhibits. 28.45 Subpoenas for attendance at hearing. 28.51 Form, filing and service of papers. Sec. 28.85 Collection of civil penalties and assessments. 28.87 Right to administrative offset. 28.89 Deposit in Treasury of United States. 28.91 Compromise or settlement. 28.93 Limitations. AUTHORITY: The Program Fraud Civil Remedies Act of 1986, Pub. L. 99-509. SOURCE: 53 FR 24001, June 24, 1988, unless otherwise noted. § 28.1 Purpose. This part (a) Establishes administrative procedures for imposing civil penalties and assessments against persons who make, submit, or present, or cause to be made, submitted, or presented, false, fictitious, or fraudulent claims or written statements to Federal authorities or to their agents, and (b) Specifies the hearing and appeal rights of persons subject to allegations of liability for such penalties and assessments. § 28.3 Definitions. ALJ means an Administrative Law Judge in HUD appointed pursuant to 5 U.S.C. 3105 or detailed to HUD pursuant to 5 U.S.C. 3344. Authority head means the Secretary or Under Secretary of the Department of Housing and Urban Development. Benefits means, in the context of "statement," anything of value, including but not limited to any advantage, preference, privilege, license, permit, favorable decision, ruling, status, or loan insurance or guarantee. Claim means any request, demand, or submission made to (a) HUD for property, services, or money (including money representing grant, loans, insurance, or benefits); (b) A recipient of property, services, or money from HUD or to a party to a contract with HUD (1) For property or services if the United States (i) Provided the property or services; (ii) Provided any portion of the funds for the purchase of the property or services; or (iii) Will reimburse the recipient or party for the purchase of the property or services; or (2) For the payment of money (including money representing grants, loans, insurance, or benefits) if the United States (i) Provided any portion of the money requested or demanded; or (ii) Will reimburse the recipient or party for any portion of the money paid on the request or demand; or (c) HUD which has the effect of decreasing an obligation to pay or account for property, services, or money. Complaint means the administrative complaint served by the reviewing official on the defendant under § 28.13. Defendant means any person alleged in a complaint under § 28.13 to be liable for a civil penalty or assessment under § 28.5. Government means the United States Government. HUD means the Department of Housing and Urban Development. Individual means a natural person. Initial decision means the written decision of the ALJ required by § 28.19 or § 28.73, and includes a revised initial decision issued following a remand or a motion for reconsideration. Investigating official means the Inspector General of the Department of Housing and Urban Development or an officer or employee of the Office of the Inspector General designated by the Inspector General and serving in a position for which the rate of basic pay is not less than the minimum rate of basic pay for grade GS-16 under the General Schedule. Knows or has reason to know, means that a person, with respect to a claim or statement (a) Has actual knowledge that the claim or statement is false, fictitious, or fraudulent; (b) Acts in deliberate ignorance of the truth or falsity of the claim or statement; or (c) Acts in reckless disregard of the truth or falsity of the claim or statement. Makes, wherever it appears, shall include the terms presents, and submits, and causes to be made, presented, or submitted. As the context requires, making or made, shall likewise include the corresponding forms of such terms. $28.5 Person means any individual, partnership, corporation, association, or private organization, and includes the plural of the term. Representative means an attorney who is a member in good standing of the bar of any State, Territory, or posession of the United States or of the District of Columbia or the Commonwealth of Puerto Rico, or other representative meeting the qualifications of a non-attorney representative found at 24 CFR part 26 and designated by a party in writing. Reviewing official means the General Counsel of the Department or his or her designee who is— (a) Not subject to supervision by, or required to report to, the investigating official; (b) Not employed in the organizational unit of HUD in which the investigating official is employed; and (c) Is serving in a position for which the rate of basic pay is not less than the minimum rate of basic pay for the General grade GS-16 under Schedule. Statement means any representation, certification, affirmation, document, record, or accounting or bookkeeping entry made (a) With respect to a claim or to obtain the approval or payment of a claim (including relating to eligibility to make a claim); or (b) With respect to (including relating to eligibility for)— (1) A contract with, or a bid or proposal for a contract with; or (2) A grant or cooperative agreement, loan, or benefit from, HUD, or any State, political subdivision of a State, or other party, if the United States Government provides any portion of the money or property under the contract or the grant or cooperative agreement, loan, or benefit, or if the Government will reimburse the State, political subdivision, or party for any portion of the money or property under the contract or for the grant or cooperative agreement, loan, or benefit. § 28.5 Basis for civil penalties and assessments. (a) Claims. (1) A person shall be subject, in addition to any other remedy that may be prescribed by law, to a civil penalty of not more than $5,000 except as provided in paragraph (c) of this section, when that person makes a claim that the person knows or has reason to know (i) Is false, fictitious, or fraudulent; (ii) Includes or is supported by any written statement that asserts a material fact which is false, fictitious, or fraudulent; (iii) Includes or is supported by any written statement that (A) Omits a material fact; (B) Is false, fictitious, or fraudulent as a result of the omission, and (C) Is a statement in which the person making the statement has a duty to include the material fact; or (iv) Is for payment for the provision of property or services that the person has not provided as claimed. (2) Each voucher, invoice, claim form, or other individual request or demand for property, services, or money constitutes a separate claim. (3) A claim shall be considered made to HUD, to a recipient, or to a party when the claim actually is made to an agent, fiscal intermediary, or other entity, including any State or political subdivision of a State, acting for or on behalf of HUD, the recipient, or the party. (4) Each claim for property, services, or money is subject to a civil penalty without regard to whether the property, services, or money actually is delivered or paid. (5) If the Government has made any payment (including transferred property or provided services) on a claim, a person subject to a civil penalty under paragraph (a)(1) of this section also shall be subject to an assessment of not more than twice the amount of the claim or that portion of the claim that is determined to be in violation of paragraph (a)(1) of this section. This assessment shall be in lieu of damages sustained by the Government because of the claim. (b) Statements. (1) A person shall be subject, in addition to any other remedy that may be prescribed by law, to a civil penalty of not more than $5,000 for each statement, except as provided in paragraph (c) of this section, when that person makes a written statement that (i) The person knows or has reason to know (A) Asserts a material fact which is false, fictitious, or fraudulent; or (B) Is false, fictitious, or fraudulent because it omits a material fact that the person making the statement has a duty to include in the statement; and (ii) Contains or is accompanied by an express certification or affirmation of the truthfulness and accuracy of the contents of the statement; (2) Each written representation, certification, or affirmation constitutes a separate statement. (3) A statement shall be considered made to HUD when the statement is actually made to an agent, fiscal intermediary, or other entity, including any State or political subdivision of a State, acting for or on behalf of HUD. (c)(1) In the case of any claim or statement made by any individual relating to any of the benefits listed in paragraph (c)(2) of this section, the individual may be held liable for penalties and assessments under this section where the benefits are received by the individual or individual's family only if the claim or statement is made by the individual with respect to the individual's or individual's family's eligibility to receive benefits, in the course of making application for the benefits. (2) For purposes of this paragraph (c), "benefits" shall be defined as any instance wherein funds administered by the Secretary of HUD directly or indirectly permit lower income families or elderly or handicapped persons to reside in housing which otherwise would not be available to them. These instances include but are not limited to housing made available in whole or in part under the following enabling legislation and through the following commonly named programs: United States Housing Act of 1937 (42 U.S.C. 1437) Section 8 Lower-Income Rental Assistance Sections 23 and 10(c)-Leased Housing Section 202-Direct Loans for Housing for the Elderly and Handicapped Section 17-Rental Rehabilitation and Development Grants Section 14-Comprehensive Improvement Assistance Turnkey III Section 4, 5, and 9 Public Housing National Housing Act (12 U.S.C. 1702) Insurance of Below Market Rate Mortgages Housing and Urban Development Act of 1965 (12 U.S.C. 1701) Section 101 Rent Supplements Housing and Community Development Act of 1987 Title VI-Nehemiah Housing Opportunity Grants (d) No proof of specific intent to defraud is required to establish liability under this section. (e) Where it is determined that more than one person is liable for making a claim or statement under this section, each such person may be held liable for a civil penalty under this section. (f) Where it is determined that more than one person is liable for making a claim under this section on which the Government has made payment (including transferred property or provided services), an assessment may be imposed against any such person or jointly and severally against any combination of such persons. § 28.7 Investigation. (a) If an investigating official concludes that a subpoena under 31 U.S.C. 3804(a) is warranted (1) The subpoena shall notify the person to whom it is addressed of the authority under which it is issued and shall identify the records or documents sought; (2) The investigating official may designate a person to act on his or her behalf to receive the documents sought; and (3) The person receiving the subpoena shall be required to tender to the investigating official or to the person designated to receive the documents a certification that the documents sought have been produced, or that the documents are not available and the reasons they are not available, or that the documents, suitably identi fied, have been withheld based upon the assertion of the identified privilege. (b) If the investigating official conIcludes that an action under the Program Fraud Civil Remedies Act may be warranted, the investigating official shall submit a report containing the findings and conclusions of the investigation to the reviewing official. (c) Nothing in this section shall preclude or limit an investigating official's discretion to refer allegations directly to the Department of Justice for suit under the False Claims Act or for other civil relief, or to defer or postpone a report or referral to the reviewing official to avoid interference with a criminal investigation or prosecution. (d) Nothing in this section modifies any responsibility of an investigating official to report violations of criminal law to the Attorney General. § 28.9 Review by the reviewing official. (a) If, based on the report of the investigating official under § 28.7(b), the reviewing official determines that there is adequate evidence to believe that a person is liable under § 28.5, the reviewing official shall transmit to the Attorney General a written notice of the reviewing official's intention to issue a complaint under § 28.13. (b) The notice shall include(1) A statement of the reviewing official's reasons for issuing a complaint; (2) A statement specifying the evidence that supports the allegations of liability; (3) A description of the claims or statements upon which the allegations of liability are based; (4) An estimate of the amount of money or the value of property, services, or other benefits requested or demanded in violation of § 28.5; (5) A statement of any exculpatory or mitigating circumstances known by the reviewing official or the investigating official that may relate to the claims or statements; and (6) A statement that there is a reasonable prospect of collecting an appropriate amount of penalties and assessments. § 28.11 Prerequisites for issuing a complaint. (a) The reviewing official may issue a complaint under § 28.13 only if— (1) The Department of Justice approves the issuance of a complaint in a written statement as described in 31 U.S.C. 3803(b)(1); and (2) In the case of allegations of liability under § 28.5(a) with respect to a claim, the reviewing official determines that, with respect to the claim or to a group of related claims submitted at the same time the claim is submitted (as defined in paragraph (b) of this section), the amount of money or the value of property or services demanded or requested in violation of § 28.5(a) does not exceed $150,000. (b) For the purposes of this section, a related group of claims submitted at the same time shall include only those claims arising from the same transaction (e.g., grant or cooperative agreement, loan, application, or contract) that are submitted simultaneously as part of a single request, demand, or submission. (c) Nothing in this section shall be construed to limit the reviewing official's authority to join, in a single complaint against a person, claims that are unrelated or that were not submitted simultaneously, regardless of the amount of money, or the value of property or services, demanded or requested. § 28.13 Complaint. (a) On or after the date the Department of Justice approves the issuance of a complaint in accordance with 31 U.S.C. 3803(b)(1), the reviewing official may serve a complaint on the defendant as provided in § 28.15. (b) The complaint shall stateliability (1) The allegations of against the defendant, including the statutory basis for liability, and identification of the claims or statements that are the basis for the alleged liability, and the reasons why liability allegedly arises from those claims or statements; (2) The maximum amount of penalties and assessments for which the defendant may be held liable; |