[Question Concerning Accountable Officer's Liability in Fraudulent Claim Case]

An Army Corps of Engineers authorized certifying officer requested a decision concerning issues incident to the settlement of a fraud case against three of its employees. The Corps: (1) referred the employees' cases to the Department of Justice after it determined that they fraudulently claimed travel expenses; and (2) began to retain unrelated travel reimbursement funds owed to two of the defendants for their then-current travel. Justice subsequently settled the case through plea-bargain agreements with the defendants, all of whom made restitution to the Corps. The requester asked whether: (1) the Corps was precluded from taking further collection action against the defendants; and (2) the accountable officer could refund the retained monies without suffering personal liability for an improper payment. GAO held that: (1) the Corps and Justice were entitled to compromise the claim as they did in settling it; (2) the Corps was precluded from taking further action against the defendants because the claim was settled; and (3) the accountable officer was required to refund the retained monies and could not be held personally liable for doing so. Accordingly, the retained monies may be refunded to the defendants.