B-126981, MAR. 1, 1956

B-126981: Mar 1, 1956

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WAS CERTIFIED TO BE INDEBTED TO THE UNITED STATES IN THE SUM OF $560.91. BECAUSE OF HAVING FALSELY ALLEGED THAT HE WAS MARRIED. WHEN IN FACT HE WAS DIVORCED AND. THE DEBTOR WAS SENTENCED TO ONE YEAR IN THE CUSTODY OF THE ATTORNEY GENERAL (KANSAS) ON A CHARGE OF MAKING FALSE REPRESENTATIONS TO THE VETERANS ADMINISTRATION. THE DEBTOR WAS PLACED ON PROBATION WITH THE UNDERSTANDING THAT HE WOULD MAKE RESTITUTION OF THE AMOUNT DUE THE GOVERNMENT. THE DEBTOR'S PROBATION WAS REVOKED FOR FAILING TO COMPLY WITH THE TERMS THEREOF AND HE WAS PLACED IN A PENAL INSTITUTION. HE WAS PAROLED FROM THE INSTITUTION ON SEPTEMBER 6. IT IS SETTLED THAT A PERSON WHO IS SUBJECTED TO A PENALTY AS A RESULT OF A CRIMINAL PROCEEDING IS NOT ABSOLVED OF HIS CIVIL LIABILITY.

B-126981, MAR. 1, 1956

TO THE ATTORNEY GENERAL:

BY GENERAL ACCOUNTING OFFICE CERTIFICATE OF INDEBTEDNESS DATED JANUARY 31, 1956, JOHN L. GATES, 1934 "T" STREET, LINCOLN, NEBRASKA, WAS CERTIFIED TO BE INDEBTED TO THE UNITED STATES IN THE SUM OF $560.91, INCLUDING INTEREST TO DECEMBER 31, 1955. THIS INDEBTEDNESS REPRESENTS OVERPAYMENT OF SUBSISTENCE ALLOWANCE MADE TO THE DEBTOR BY THE VETERANS ADMINISTRATION AS A RESULT OF ALLEGED FALSE AND FRAUDULENT STATEMENTS MADE BY HIM UNDER THE PROVISIONS OF THE SERVICEMEN'S READJUSTMENT ACT OF 1944, 58 STAT. 287, AS AMENDED.

THE DEBTOR CLAIMED AND RECEIVED SUBSISTENCE ALLOWANCE DURING THE PERIOD JANUARY 16, 1950, THROUGH JUNE 30, 1951, AT THE RATE OF $105 PER MONTH, BECAUSE OF HAVING FALSELY ALLEGED THAT HE WAS MARRIED, WHEN IN FACT HE WAS DIVORCED AND, THEREFORE, ENTITLED TO SUBSISTENCE ALLOWANCE AT THE RATE OF ONLY $75 PER MONTH. HOWEVER, THE DEBTOR'S SUBSISTENCE ALLOWANCE CHECK (NO. 70,033,189) FOR JUNE 1951, IN THE AMOUNT OF $105 HAS BEEN APPLIED (INTEREST $21.52 THROUGH JUNE 30, 1951, AND $83.48, PRINCIPAL OF OVERPAYMENT) IN PARTIAL LIQUIDATION OF THE AMOUNT FOUND DUE.

IN CRIMINAL PROCEEDINGS IN THE UNITED STATES DISTRICT COURT, WICHITA, KANSAS, ON MARCH 23, 1953, THE DEBTOR WAS SENTENCED TO ONE YEAR IN THE CUSTODY OF THE ATTORNEY GENERAL (KANSAS) ON A CHARGE OF MAKING FALSE REPRESENTATIONS TO THE VETERANS ADMINISTRATION. THE DEBTOR WAS PLACED ON PROBATION WITH THE UNDERSTANDING THAT HE WOULD MAKE RESTITUTION OF THE AMOUNT DUE THE GOVERNMENT. ON APRIL 8, 1954, THE DEBTOR'S PROBATION WAS REVOKED FOR FAILING TO COMPLY WITH THE TERMS THEREOF AND HE WAS PLACED IN A PENAL INSTITUTION. HE WAS PAROLED FROM THE INSTITUTION ON SEPTEMBER 6, 1954, AND DISCHARGED FROM SUPERVISION ON APRIL 7, 1955. HOWEVER, IT IS SETTLED THAT A PERSON WHO IS SUBJECTED TO A PENALTY AS A RESULT OF A CRIMINAL PROCEEDING IS NOT ABSOLVED OF HIS CIVIL LIABILITY, AND THE GOVERNMENT IS NOT PRECLUDED FROM RECOVERING THE FUNDS WHICH HE ERRONEOUSLY RECEIVED BECAUSE OF FALSE STATEMENTS OR MISREPRESENTATION. UNITED STATES EX REL. MARCUS V. HESS, 317 U.S. 537, 548, AND HELVERING V. MITCHELL, 303 U.S. 391.

INASMUCH AS THE RECORD INDICATES AN APPARENT VIOLATION OF THE "FALSE CLAIMS STATUTES," AND IN ORDER NOT TO PREJUDICE THE BRINGING OF COLLECTION PROCEEDINGS UPON SUCH BASIS AS YOU MAY DEEM PROPER, NO COPY OF THE CERTIFICATE OF INDEBTEDNESS HAS BEEN TRANSMITTED TO THE DEBTOR. EFFORTS HERETOFORE MADE TO COLLECT THE BALANCE OF THE INDEBTEDNESS HAVE BEEN UNSUCCESSFUL.

IT IS RECOMMENDED THAT THE MATTER OF THE INDEBTEDNESS BE REFERRED TO THE APPROPRIATE UNITED STATES ATTORNEY FOR ACTION TO EFFECT COLLECTION. FOR THAT PURPOSE THERE ARE ENCLOSED (1) TWO COPIES OF THE CERTIFICATE DATED JANUARY 31, 1956; (2) TWO COPIES OF ADMINISTRATIVE REPORT (WITH ATTACHMENT) DATED DECEMBER 12, 1952, AND TWO PHOTOSTATIC COPIES OF ADMINISTRATIVE REPORT DATED SEPTEMBER 30, 1953; (3) TWO PHOTOSTATIC COPIES OF PERTINENT CORRESPONDENCE, AND (4) A CREDIT REPORT DATED NOVEMBER 17, 1955, ON THE DEBTOR. IN THE EVENT IT BECOMES NECESSARY TO INSTITUTE SUIT, CERTIFIED COPIES OF SUCH DOCUMENTS AND PAPERS AS MAY BE REQUIRED WILL BE FURNISHED PROMPTLY UPON RECEIPT OF A REQUEST THEREFOR FROM YOUR DEPARTMENT.

IN ACCORDANCE WITH ESTABLISHED ACCOUNTING PROCEDURES THE AMOUNT COLLECTED SHOULD BE DEPOSITED INTO THE TREASURY TO THE CREDIT OF THE ACCOUNTS DESIGNATED IN THE CERTIFICATE OF INDEBTEDNESS. ANY AMOUNT RECOVERED AS A PENALTY OR FORFEITURE UNDER THE PROVISIONS OF 31 U.S.C. 231-233 AND 235 SHOULD BE DEPOSITED INTO THE TREASURY UNDER THE RECEIPT ACCOUNT "0999 FINES, PENALTIES AND FORFEITURES, NOT OTHERWISE CLASSIFIED.'