A-16103, SEPTEMBER 22, 1936, 16 COMP. GEN. 287

A-16103: Sep 22, 1936

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

COMPENSATION CHECK NO. 48218587 WAS DRAWN ON THE TREASURER OF THE UNITED STATES BY WILLIAM H. WHICH AMOUNT WAS ADMITTEDLY RAISED BY THE VETERAN TO $4. A COPY OF WHICH IS ENCLOSED. A COPY OF WHICH AUTHORITY IS ALSO ENCLOSED. AFTER THIS A NOTE (FORM 1185) WAS FORWARDED TO THE VETERAN. THE PERSON WHO EXECUTED THE CERTIFICATE OF IDENTIFICATION WAS NOT RECOGNIZED BY THIS ADMINISTRATION. A LOAN WAS MADE ON THE ORIGINAL NOTE. CHECK NO. 1162362 IN THE AMOUNT OF $307.50 WAS ISSUED ON NOVEMBER 30. WHICH AMOUNT WAS APPLIED AS A PARTIAL REIMBURSEMENT OF THE COMPENSATION CHECK NO. 48218587. AN AWARD OF DISABILITY COMPENSATION WAS APPROVED IN THE VETERAN'S FAVOR IN THE AMOUNT OF $50 MONTHLY. WHICH AMOUNT IS BEING APPLIED TO HIS INDEBTEDNESS.

A-16103, SEPTEMBER 22, 1936, 16 COMP. GEN. 287

SET-OFF - VETERANS' BENEFITS - FRAUDULENT TRANSACTIONS THE SAVING CLAUSES APPEARING IN VETERANS' LEGISLATION AGAINST THE APPLICATION OF BENEFITS DUE THEREUNDER TO LIQUIDATE A VETERAN'S INDEBTEDNESS TO THE UNITED STATES, DO NOT RELIEVE THE VETERAN FROM THE APPLICATION OF SUCH BENEFITS TO AN INDEBTEDNESS ARISING OUT OF FRAUD PERPETRATED BY HIM AGAINST THE UNITED STATES UNDER SUCH LEGISLATION, PARTICULARLY WHERE THE VETERAN HAS CONSENTED TO THE WITHHOLDING AND APPLICATION OF SUCH FUNDS, NOTWITHSTANDING THE ENACTMENT OF SUCH SAVING CLAUSE SUBSEQUENT TO THE CONSENT OF THE VETERAN.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE ADMINISTRATOR OF VETERANS' AFFAIRS, SEPTEMBER 22, 936:

CONSIDERATION HAS BEEN GIVEN TO YOUR LETTER OF AUGUST 28, 1936, AS FOLLOWS:

ON JUNE 1, 1922, COMPENSATION CHECK NO. 48218587 WAS DRAWN ON THE TREASURER OF THE UNITED STATES BY WILLIAM H. HOLMES, SYMBOL NO. 11348, TO THE ORDER OF JOE CLENTON BECK, DC-7144, A-4418184, FOR $47.50, WHICH AMOUNT WAS ADMITTEDLY RAISED BY THE VETERAN TO $4,750.00.

ON DECEMBER 15, 1930, JOE CLENTON BECK EXECUTED A WAIVER OF ALL HIS RIGHTS TO ANY AMOUNTS THAT MIGHT ACCRUE TO HIM UNDER AN ADJUSTED SERVICE CERTIFICATE WHICH MIGHT BE ISSUED TO HIM FOR ADJUSTED COMPENSATION, A COPY OF WHICH IS ENCLOSED. ON FEBRUARY 4, 1932, THE VETERAN VOLUNTARILY AUTHORIZED THE VETERANS' ADMINISTRATION TO WITHHOLD THE LOAN VALUES THAT MIGHT ACCRUE ON HIS ADJUSTED-SERVICE CERTIFICATE FOR THE PURPOSES OF APPLYING THE SAME TO THE RAISED AMOUNT OF THE CHECK IN QUESTION, A COPY OF WHICH AUTHORITY IS ALSO ENCLOSED. AFTER THIS A NOTE (FORM 1185) WAS FORWARDED TO THE VETERAN, WHO EXECUTED THE NOTE PROPERLY, BUT THE PERSON WHO EXECUTED THE CERTIFICATE OF IDENTIFICATION WAS NOT RECOGNIZED BY THIS ADMINISTRATION. THE VETERAN REFUSED TO EXECUTE ANOTHER NOTE, AND A LOAN WAS MADE ON THE ORIGINAL NOTE, BASED ENTIRELY UPON IDENTIFICATION OF THE VETERAN THROUGH HIS SIGNATURE APPEARING ON THE NOTE AND OTHER KNOWN SIGNATURES IN THE A FOLDER.

CHECK NO. 1162362 IN THE AMOUNT OF $307.50 WAS ISSUED ON NOVEMBER 30, 1932, PAYABLE TO THE TREASURER OF THE UNITED STATES, WHICH AMOUNT WAS APPLIED AS A PARTIAL REIMBURSEMENT OF THE COMPENSATION CHECK NO. 48218587, DATED JUNE 1, 1922, IN THE AMOUNT OF $47.50 RAISED TO $4,750.00.

ON MARCH 28, 1934, AN AWARD OF DISABILITY COMPENSATION WAS APPROVED IN THE VETERAN'S FAVOR IN THE AMOUNT OF $50 MONTHLY, WHICH AMOUNT IS BEING APPLIED TO HIS INDEBTEDNESS.

NOTWITHSTANDING THE PROVISIONS OF SECTION 308 OF THE WORLD WAR ADJUSTED COMPENSATION ACT, 1924, AS AMENDED, SECTION 3 OF PUBLIC, NO. 262, 74TH CONGRESS, 49 STAT. 607, ENTITLED "AN ACT TO SAFEGUARD THE ESTATES OF VETERANS DERIVED FROM PAYMENTS OF PENSION, COMPENSATION, EMERGENCY OFFICERS' RETIREMENT PAY AND INSURANCE, AND FOR OTHER PURPOSES," DATED AUGUST 12, 1935, AND SECTIONS 4 AND 7 OF THE ADJUSTED COMPENSATION PAYMENT ACT, 1936, PUBLIC, NO. 425, 74TH CONGRESS, A COMMUNICATION HAS BEEN RECEIVED FROM THE ASSISTANT TREASURER, TREASURY DEPARTMENT, RAISING A QUESTION AS TO WHETHER OR NOT THE BALANCE DUE ON THE VETERAN'S ADJUSTED SERVICE CERTIFICATE MAY, WHEN IT BECOMES AVAILABLE THROUGH PROPER APPLICATION THEREFOR, BE CERTIFIED TO THE TREASURER OF THE UNITED STATES TO BE APPLIED TO FURTHER REDUCE THE VETERAN'S DISABILITY COMPENSATION INDEBTEDNESS.

AN APPLICATION (FORM 1701) FOR SETTLEMENT OF HIS ADJUSTED SERVICE CERTIFICATE HAS BEEN RECEIVED FROM THE VETERAN. IN VIEW OF THE FRAUD INVOLVED IN THE CASE AND THE LARGE AMOUNT STILL DUE THE UNITED STATES, APPROXIMATELY $1,500.00, YOUR DECISION IS INVITED AS TO WHETHER OR NOT THE VETERANS' ADMINISTRATION MAY CERTIFY A VOUCHER PAYABLE TO THE TREASURER OF THE UNITED STATES TO FURTHER REDUCE THE VETERAN'S INDEBTEDNESS.

IN THE WAIVER EXECUTED BY JOE CLENTON BECK, DECEMBER 15, 1930, AND FILED IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF SOUTH CAROLINA, AFTER RECITING THE FACTS RELATING TO RAISING OF CHECK AND HIS ARREST, IT IS STATED AS FOLLOWS:

NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES, AND WITH THE VIEW AND PURPOSE OF PARTIALLY REPAYING THE GOVERNMENT FOR THE AMOUNT OF ITS LOSS ON ACCOUNT OF MY SAID ACT, I, THE SAID JOE CLENTON BECK, DO HEREBY WAIVE ALL MY RIGHTS TO ANY AMOUNTS THAT MIGHT ACCRUE TO ME, IF ANY, UNDER ANY ADJUSTED SERVICE CERTIFICATE WHICH MAY BE ISSUED TO ME FOR ADJUSTED COMPENSATION; AND FURTHER WAIVE ONE-HALF OF ALL COMPENSATION NOW DUE ME, OR HEREAFTER TO BECOME DUE ME UNDER THE WORLD WAR VETERANS' ACT, OR OTHERWISE; AND I HEREBY AGREE FOR THE UNITED STATES, THROUGH ITS PROPER OFFICERS OR PROPER BUREAU OR DEPARTMENT, TO APPLY ANY OF SUCH COMPENSATION SO WAIVED AND ANY AMOUNTS THAT MIGHT ACCRUE THROUGH ANY ADJUSTED COMPENSATION OR ADJUSTED SERVICE CERTIFICATE TO MY INDEBTEDNESS AFORESAID.

THIS WAIVER BY THE VETERAN IS BINDING ON HIM NOTWITHSTANDING THE PROVISIONS OF ANY EXISTING STATUTE ENACTED EITHER PRIOR OR SUBSEQUENT TO THE EXECUTION OF THE WAIVER INCLUDING THOSE CITED IN YOUR LETTER. VETERANS' LEGISLATION HAS GONE SO FAR AS TO PRECLUDE A VETERAN FROM LIQUIDATING HIS INDEBTEDNESS TO THE GOVERNMENT BY CONSENTING TO THE WITHHOLDING OF FUNDS DUE AND PAYABLE TO HIM UNDER SUCH LEGISLATION AND THE APPLICATION THEREOF TOWARD THE INDEBTEDNESS.

MOREOVER, IT IS NOT BELIEVED THE CONGRESS COULD HAVE INTENDED THAT ANY STATUTORY SAVING CLAUSE APPEARING IN VETERANS' LEGISLATION AGAINST APPLICATION OF BENEFITS DUE THE VETERAN THEREUNDER TO LIQUIDATE THE VETERAN'S INDEBTEDNESS TO THE UNITED STATES SHOULD BE APPLIED TO RELIEVE THE VETERAN FROM AN INDEBTEDNESS GROWING OUT OF FRAUD PERPETRATED BY HIM ON THE UNITED STATES UNDER SUCH LEGISLATION. THEREFORE, ANY SUCH SAVING CLAUSE, TO THE EXTENT IT MAY PROPERLY BE CONSTRUED AS RELIEVING A VETERAN FROM THE EFFECTS OF THE INHERENT RIGHT OF THE UNITED STATES OF SET-OFF, MUST BE HELD TO APPLY ONLY IN OTHERWISE PROPER CASES NOT TAINTED BY FRAUD OF THE VETERAN.

ACCORDINGLY, THE QUESTION CONTAINED IN THE CONCLUDING PARAGRAPH OF YOUR LETTER IS ANSWERED IN THE AFFIRMATIVE.