-CITE-
    38 USC CHAPTER 61 - PENAL AND FORFEITURE PROVISIONS         01/03/2007

-EXPCITE-
    TITLE 38 - VETERANS' BENEFITS
    PART IV - GENERAL ADMINISTRATIVE PROVISIONS
    CHAPTER 61 - PENAL AND FORFEITURE PROVISIONS

-HEAD-
               CHAPTER 61 - PENAL AND FORFEITURE PROVISIONS           

-MISC1-
    Sec.                                                     
    6101.       Misappropriation by fiduciaries.                      
    6102.       Fraudulent acceptance of payments.                    
    6103.       Forfeiture for fraud.                                 
    6104.       Forfeiture for treason.                               
    6105.       Forfeiture for subversive activities.                 
    6106.       Misuse of benefits by fiduciaries.                    
    6107.       Reissuance of benefits.                               
    6108.       Authority for judicial orders of restitution.         

                                AMENDMENTS                            
      2004 - Pub. L. 108-454, title V, Secs. 503(b), 504(b)(2), Dec.
    10, 2004, 118 Stat. 3620, 3621, added items 6106 to 6108.
      1991 - Pub. L. 102-40, title IV, Sec. 402(c)(1), May 7, 1991, 105
    Stat. 239, renumbered items 3501 to 3505 as 6101 to 6105,
    respectively.
      1959 - Pub. L. 86-222, Sec. 3(b), Sept. 1, 1959, 73 Stat. 453,
    added item 3505.

-End-



-CITE-
    38 USC Sec. 6101                                            01/03/2007

-EXPCITE-
    TITLE 38 - VETERANS' BENEFITS
    PART IV - GENERAL ADMINISTRATIVE PROVISIONS
    CHAPTER 61 - PENAL AND FORFEITURE PROVISIONS

-HEAD-
    Sec. 6101. Misappropriation by fiduciaries

-STATUTE-
      (a) Whoever, being a fiduciary (as defined in section 5506 of
    this title) for the benefit of a minor, incompetent, or other
    beneficiary under laws administered by the Secretary, shall lend,
    borrow, pledge, hypothecate, use, or exchange for other funds or
    property, except as authorized by law, or embezzle or in any manner
    misappropriate any such money or property derived therefrom in
    whole or in part and coming into such fiduciary's control in any
    manner whatever in the execution of such fiduciary's trust, or
    under color of such fiduciary's office or service as such
    fiduciary, shall be fined in accordance with title 18, or
    imprisoned not more than five years, or both.
      (b) Any willful neglect or refusal to make and file proper
    accountings or reports concerning such money or property as
    required by law shall be taken to be sufficient evidence prima
    facie of such embezzlement or misappropriation.

-SOURCE-
    (Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1239, Sec. 3501; Pub. L.
    99-576, title VII, Sec. 701(82), Oct. 28, 1986, 100 Stat. 3298;
    renumbered Sec. 6101, Pub. L. 102-40, title IV, Sec. 402(b)(1), May
    7, 1991, 105 Stat. 238; Pub. L. 102-54, Sec. 14(d)(7), June 13,
    1991, 105 Stat. 286; Pub. L. 102-83, Sec. 4(a)(1), Aug. 6, 1991,
    105 Stat. 403; Pub. L. 103-446, title XII, Sec. 1201(e)(17), Nov.
    2, 1994, 108 Stat. 4686; Pub. L. 108-454, title V, Sec. 501(c),
    Dec. 10, 2004, 118 Stat. 3618.)


-MISC1-
                                AMENDMENTS                            
      2004 - Subsec. (a). Pub. L. 108-454, Sec. 501(c), substituted
    "fiduciary (as defined in section 5506 of this title) for the
    benefit of a minor, incompetent, or other beneficiary under laws
    administered by the Secretary," for "guardian, curator,
    conservator, committee, or person legally vested with the
    responsibility or care of a claimant or a claimant's estate, or any
    other person having charge and custody in a fiduciary capacity of
    money heretofore or hereafter paid under any of the laws
    administered by the Secretary for the benefit of any minor,
    incompetent, or other beneficiary,".
      1994 - Subsec. (a). Pub. L. 103-446 inserted a comma after "title
    18".
      1991 - Pub. L. 102-40 renumbered section 3501 of this title as
    this section.
      Subsec. (a). Pub. L. 102-83 substituted "administered by the
    Secretary" for "administered by the Veterans' Administration".
      Pub. L. 102-54 amended subsec. (a) as in effect immediately
    before the enactment of Pub. L. 102-40 by substituting "in
    accordance with title 18" for "not more than $2,000".
      1986 - Subsec. (a). Pub. L. 99-576 substituted "a claimant's" for
    "his" before "estate", and "such fiduciary's" for "his" in three
    places.

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Amendment by Pub. L. 108-454 effective on the first day of the
    seventh month beginning after Dec. 10, 2004, see section 507(a) of
    Pub. L. 108-454, set out as an Effective Date of 2004 Amendment
    note under section 5312 of this title.

-End-



-CITE-
    38 USC Sec. 6102                                            01/03/2007

-EXPCITE-
    TITLE 38 - VETERANS' BENEFITS
    PART IV - GENERAL ADMINISTRATIVE PROVISIONS
    CHAPTER 61 - PENAL AND FORFEITURE PROVISIONS

-HEAD-
    Sec. 6102. Fraudulent acceptance of payments

-STATUTE-
      (a) Any person entitled to monetary benefits under any of the
    laws administered by the Secretary whose right to payment thereof
    ceases upon the happening of any contingency, who thereafter
    fraudulently accepts any such payment, shall be fined in accordance
    with title 18, or imprisoned not more than one year, or both.
      (b) Whoever obtains or receives any money or check under any of
    the laws administered by the Secretary without being entitled to
    it, and with intent to defraud the United States or any beneficiary
    of the United States, shall be fined in accordance with title 18,
    or imprisoned not more than one year, or both.

-SOURCE-
    (Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1239, Sec. 3502;
    renumbered Sec. 6102, Pub. L. 102-40, title IV, Sec. 402(b)(1), May
    7, 1991, 105 Stat. 238; Pub. L. 102-54, Sec. 14(d)(7), June 13,
    1991, 105 Stat. 286; Pub. L. 102-83, Sec. 4(a)(1), Aug. 6, 1991,
    105 Stat. 403.)


-MISC1-
                                AMENDMENTS                            
      1991 - Pub. L. 102-40 renumbered section 3502 of this title as
    this section.
      Pub. L. 102-83 substituted "administered by the Secretary" for
    "administered by the Veterans' Administration" in subsecs. (a) and
    (b).
      Pub. L. 102-54 amended section as in effect immediately before
    the enactment of Pub. L. 102-40 by substituting "in accordance with
    title 18" for "not more than $2,000" in subsecs. (a) and (b).

-End-



-CITE-
    38 USC Sec. 6103                                            01/03/2007

-EXPCITE-
    TITLE 38 - VETERANS' BENEFITS
    PART IV - GENERAL ADMINISTRATIVE PROVISIONS
    CHAPTER 61 - PENAL AND FORFEITURE PROVISIONS

-HEAD-
    Sec. 6103. Forfeiture for fraud

-STATUTE-
      (a) Whoever knowingly makes or causes to be made or conspires,
    combines, aids, or assists in, agrees to, arranges for, or in any
    way procures the making or presentation of a false or fraudulent
    affidavit, declaration, certificate, statement, voucher, or paper,
    concerning any claim for benefits under any of the laws
    administered by the Secretary (except laws pertaining to insurance
    benefits) shall forfeit all rights, claims, and benefits under all
    laws administered by the Secretary (except laws pertaining to
    insurance benefits).
      (b) Whenever a veteran entitled to disability compensation has
    forfeited the right to such compensation under this section, the
    compensation payable but for the forfeiture shall thereafter be
    paid to the veteran's spouse, children, and parents. Payments made
    to a spouse, children, and parents under the preceding sentence
    shall not exceed the amounts payable to each if the veteran had
    died from service-connected disability. No spouse, child, or parent
    who participated in the fraud for which forfeiture was imposed
    shall receive any payment by reason of this subsection. An
    apportionment award under this subsection may not be made in any
    case after September 1, 1959.
      (c) Forfeiture of benefits by a veteran shall not prohibit
    payment of the burial allowance, death compensation, dependency and
    indemnity compensation, or death pension in the event of the
    veteran's death.
      (d)(1) After September 1, 1959, no forfeiture of benefits may be
    imposed under this section or section 6104 of this title upon any
    individual who was a resident of, or domiciled in, a State at the
    time the act or acts occurred on account of which benefits would,
    but not for this subsection, be forfeited unless such individual
    ceases to be a resident of, or domiciled in, a State before the
    expiration of the period during which criminal prosecution could be
    instituted. This subsection shall not apply with respect to (A) any
    forfeiture occurring before September 1, 1959, or (B) an act or
    acts which occurred in the Philippine Islands before July 4, 1946.
      (2) The Secretary is hereby authorized and directed to review all
    cases in which, because of a false or fraudulent affidavit,
    declaration, certificate, statement, voucher, or paper, a
    forfeiture of gratuitous benefits under laws administered by the
    Secretary was imposed, pursuant to this section or prior provisions
    of law, on or before September 1, 1959. In any such case in which
    the Secretary determines that the forfeiture would not have been
    imposed under the provisions of this section in effect after
    September 1, 1959, the Secretary shall remit the forfeiture,
    effective June 30, 1972. Benefits to which the individual concerned
    becomes eligible by virtue of any such remission may be awarded,
    upon application therefor, and the effective date of any award of
    compensation, dependency and indemnity compensation, or pension
    made in such a case shall be fixed in accordance with the
    provisions of section 5110(g) of this title.

-SOURCE-
    (Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1240, Sec. 3503; Pub. L.
    86-222, Sec. 1, Sept. 1, 1959, 73 Stat. 452; Pub. L. 91-24, Sec.
    13(a), June 11, 1969, 83 Stat. 34; Pub. L. 92-328, title II, Sec.
    206, June 30, 1972, 86 Stat. 397; Pub. L. 98-160, title VII, Sec.
    703(6), Nov. 21, 1983, 97 Stat. 1011; Pub. L. 99-576, title VII,
    Sec. 701(83), Oct. 28, 1986, 100 Stat. 3298; renumbered Sec. 6103
    and amended Pub. L. 102-40, title IV, Sec. 402(b)(1), (d)(1), May
    7, 1991, 105 Stat. 238, 239; Pub. L. 102-54, Sec. 14(d)(8), June
    13, 1991, 105 Stat. 286; Pub. L. 102-83, Sec. 4(a)(1), (b)(1),
    (2)(E), Aug. 6, 1991, 105 Stat. 403-405; Pub. L. 103-446, title
    XII, Sec. 1201(e)(18), (f)(5), Nov. 2, 1994, 108 Stat. 4686, 4687.)


-MISC1-
                                AMENDMENTS                            
      1994 - Subsec. (d)(1). Pub. L. 103-446, Sec. 1201(e)(18), in
    second sentence substituted "(A) any" for "(a) any", "(B) an act"
    for "(b) an act", and "before July 4, 1946" for "prior to July 4,
    1946".
      Subsec. (d)(2). Pub. L. 103-446, Sec. 1201(f)(5), substituted
    "June 30, 1972" for "the date of enactment of this amendatory Act".
      1991 - Pub. L. 102-40, Sec. 402(b)(1), renumbered section 3503 of
    this title as this section.
      Subsec. (a). Pub. L. 102-83, Sec. 4(a)(1), substituted
    "administered by the Secretary" for "administered by the Veterans'
    Administration" in two places.
      Subsec. (b). Pub. L. 102-54, Sec. 14(d)(8)(A), amended subsec.
    (b) as in effect immediately before the enactment of Pub. L. 102-40
    by inserting at end "An apportionment award under this subsection
    may not be made in any case after September 1, 1959."
      Subsec. (d)(1). Pub. L. 102-40, Sec. 402(d)(1), substituted
    "6104" for "3504".
      Subsec. (d)(2). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted
    "Secretary" for "Administrator" in three places.
      Pub. L. 102-83, Sec. 4(a)(1), substituted "administered by the
    Secretary" for "administered by the Veterans' Administration".
      Pub. L. 102-40, Sec. 402(d)(1), substituted "5110(g)" for
    "3010(g)".
      Subsec. (e). Pub. L. 102-54, Sec. 14(d)(8)(B), amended section as
    in effect immediately before the enactment of Pub. L. 102-40 by
    striking out subsec. (e) which read as follows: "No apportionment
    award under subsection (b) of this section shall be made in any
    case after the date of enactment of this subsection."
      1986 - Subsec. (c). Pub. L. 99-576, Sec. 701(83)(A), substituted
    "the veteran's" for "his".
      Subsec. (d)(2). Pub. L. 99-576, Sec. 701(83)(B), substituted "the
    Administrator" for "he" in two places in second sentence.
      1983 - Subsec. (b). Pub. L. 98-160 substituted "the right" for
    "his right", "the veteran's spouse" for "his wife", and "spouse"
    for "wife" in two places.
      1972 - Subsec. (d). Pub. L. 92-328 designated existing provisions
    as par. (1) and added par. (2).
      1969 - Subsec. (d). Pub. L. 91-24 substituted "September 1, 1959"
    for "the date of enactment of this subsection" wherever appearing.
      1959 - Subsecs. (d) and (e). Pub. L. 86-222 added subsecs. (d)
    and (e).

                     EFFECTIVE DATE OF 1972 AMENDMENT                 
      Amendment by Pub. L. 92-328 effective June 30, 1972, see section
    301(c) of Pub. L. 92-328, set out as a note under section 3713 of
    this title.

-End-



-CITE-
    38 USC Sec. 6104                                            01/03/2007

-EXPCITE-
    TITLE 38 - VETERANS' BENEFITS
    PART IV - GENERAL ADMINISTRATIVE PROVISIONS
    CHAPTER 61 - PENAL AND FORFEITURE PROVISIONS

-HEAD-
    Sec. 6104. Forfeiture for treason

-STATUTE-
      (a) Any person shown by evidence satisfactory to the Secretary to
    be guilty of mutiny, treason, sabotage, or rendering assistance to
    an enemy of the United States or of its allies shall forfeit all
    accrued or future gratuitous benefits under laws administered by
    the Secretary.
      (b) The Secretary, in the Secretary's discretion, may apportion
    and pay any part of benefits forfeited under subsection (a) to the
    dependents of the person forfeiting such benefits. No dependent of
    any person shall receive benefits by reason of this subsection in
    excess of the amount to which the dependent would be entitled if
    such person were dead.
      (c) In the case of any forfeiture under this section there shall
    be no authority after September 1, 1959 (1) to make an
    apportionment award pursuant to subsection (b) or (2) to make an
    award to any person of gratuitous benefits based on any period of
    military, naval, or air service commencing before the date of
    commission of the offense.

-SOURCE-
    (Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1240, Sec. 3504; Pub. L.
    86-222, Sec. 2, Sept. 1, 1959, 73 Stat. 452; Pub. L. 91-24, Sec.
    13(b), June 11, 1969, 83 Stat. 34; Pub. L. 97-295, Sec. 4(78), Oct.
    12, 1982, 96 Stat. 1311; Pub. L. 99-576, title VII, Sec. 701(84),
    Oct. 28, 1986, 100 Stat. 3298; renumbered Sec. 6104, Pub. L. 102-
    40, title IV, Sec. 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L.
    102-83, Sec. 4(a)(1), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403-
    405.)


-MISC1-
                                AMENDMENTS                            
      1991 - Pub. L. 102-40 renumbered section 3504 of this title as
    this section.
      Subsec. (a). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted
    "Secretary" for "Administrator".
      Pub. L. 102-83, Sec. 4(a)(1), substituted "administered by the
    Secretary" for "administered by the Veterans' Administration".
      Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted
    "Secretary" for "Administrator" and "Secretary's" for
    "Administrator's".
      1986 - Subsec. (b). Pub. L. 99-576 substituted "the
    Administrator's" for "his" and "the dependent" for "he".
      1982 - Subsec. (a). Pub. L. 97-295 inserted "to" before "be
    guilty".
      1969 - Subsec. (c). Pub. L. 91-24 substituted "September 1, 1959"
    for "the date of enactment of this subsection".
      1959 - Subsec. (c). Pub. L. 86-222 added subsec. (c).

-End-



-CITE-
    38 USC Sec. 6105                                            01/03/2007

-EXPCITE-
    TITLE 38 - VETERANS' BENEFITS
    PART IV - GENERAL ADMINISTRATIVE PROVISIONS
    CHAPTER 61 - PENAL AND FORFEITURE PROVISIONS

-HEAD-
    Sec. 6105. Forfeiture for subversive activities

-STATUTE-
      (a) Any individual who is convicted after September 1, 1959, of
    any offense listed in subsection (b) of this section shall, from
    and after the date of commission of such offense, have no right to
    gratuitous benefits (including the right to burial in a national
    cemetery) under laws administered by the Secretary based on periods
    of military, naval, or air service commencing before the date of
    the commission of such offense and no other person shall be
    entitled to such benefits on account of such individual. After
    receipt of notice of the return of an indictment for such an
    offense the Secretary shall suspend payment of such gratuitous
    benefits pending disposition of the criminal proceedings. If any
    individual whose right to benefits has been terminated pursuant to
    this section is granted a pardon of the offense by the President of
    the United States, the right to such benefits shall be restored as
    of the date of such pardon.
      (b) The offenses referred to in subsection (a) of this section
    are those offenses for which punishment is prescribed in - 
        (1) sections 894, 904, and 906 of title 10 (articles 94, 104,
      and 106 of the Uniform Code of Military Justice);
        (2) sections 175, 229, 792, 793, 794, 798, 831, 1091, 2332a,
      2332b, 2381, 2382, 2383, 2384, 2385, 2387, 2388, 2389, 2390, and
      chapter 105 of title 18;
        (3) sections 222, 223, 224, 225, and 226 of the Atomic Energy
      Act of 1954 (42 U.S.C. 2272, 2273, 2274, 2275, and 2276); and
        (4) section 4 of the Internal Security Act of 1950 (50 U.S.C.
      783).

      (c) The Secretary of Defense or the Secretary of Homeland
    Security, as appropriate, shall notify the Secretary in each case
    in which an individual is convicted of an offense listed in
    paragraph (1) of subsection (b). The Attorney General shall notify
    the Secretary in each case in which an individual is indicted or
    convicted of an offense listed in paragraph (2), (3), or (4) of
    subsection (b).

-SOURCE-
    (Added Pub. L. 86-222, Sec. 3(a), Sept. 1, 1959, 73 Stat. 453, Sec.
    3505; amended Pub. L. 92-128, Sec. 2(c), Sept. 25, 1971, 85 Stat.
    348; Pub. L. 93-43, Sec. 8, June 18, 1973, 87 Stat. 88; Pub. L. 97-
    295, Sec. 4(79), Oct. 12, 1982, 96 Stat. 1311; renumbered Sec.
    6105, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105
    Stat. 238; Pub. L. 102-54, Sec. 14(d)(9), June 13, 1991, 105 Stat.
    287; Pub. L. 102-83, Sec. 4(a)(1), (2)(A)(xiv), (b)(1), (2)(E),
    Aug. 6, 1991, 105 Stat. 403-405; Pub. L. 103-446, title XII, Sec.
    1201(e)(19), Nov. 2, 1994, 108 Stat. 4686; Pub. L. 107-296, title
    XVII, Sec. 1704(d), Nov. 25, 2002, 116 Stat. 2315; Pub. L. 108-183,
    title VII, Sec. 705(a), Dec. 16, 2003, 117 Stat. 2672.)


-MISC1-
                                AMENDMENTS                            
      2003 - Subsec. (b)(2). Pub. L. 108-183 inserted "175, 229," after
    "sections" and "831, 1091, 2332a, 2332b," after "798,".
      2002 - Subsec. (c). Pub. L. 107-296 substituted "of Homeland
    Security" for "of Transportation".
      1994 - Subsec. (c). Pub. L. 103-446 substituted "paragraph (2),
    (3), or (4) of subsection (b)" for "clauses (2), (3), or (4) of
    subsection (b) of this section" and "paragraph (1) of subsection
    (b)" for "clause (1) of that subsection" and transposed the first
    and second sentences.
      1991 - Pub. L. 102-40 renumbered section 3505 of this title as
    this section.
      Subsec. (a). Pub. L. 102-83, Sec. 4(a)(2)(A)(xiv), substituted
    "Secretary" for "Veterans' Administration" in second sentence.
      Pub. L. 102-83, Sec. 4(a)(1), substituted "administered by the
    Secretary" for "administered by the Veterans' Administration" in
    first sentence.
      Subsec. (c). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted
    "Secretary" for "Administrator" in two places.
      Pub. L. 102-54 amended subsec. (c) as in effect immediately
    before the enactment of Pub. L. 102-40 by substituting "clauses
    (2)," for "clauses (1),", "Secretary of Transportation, as" for
    "Secretary of the Treasury, as may be", and "clause (1) of that
    subsection" for "clause (2) of subsection (b) of this section".
      1982 - Subsec. (a). Pub. L. 97-295, Sec. 4(79)(A), substituted
    "September 1, 1959," for "the date of enactment of this section".
      Subsec. (b). Pub. L. 97-295, Sec. 4(79)(B), substituted pars.
    (1), (2), and (3) for cls. (2), (1), and (3), respectively, and
    inserted citations to the United States Code.
      1973 - Subsec. (a). Pub. L. 93-43 inserted "(including the right
    to burial in a national cemetery)" after "gratuitous benefits" in
    first sentence.
      1971 - Subsec. (b)(4). Pub. L. 92-128 substituted "in section 4
    of the Internal Security Act of 1950" for "in the following
    sections of the Internal Security Act of 1950; sections 4, 112, and
    113".

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Pub. L. 108-183, title VII, Sec. 705(b), Dec. 16, 2003, 117 Stat.
    2672, provided that: "The amendments made by subsection (a)
    [amending this section] shall apply to claims filed after the date
    of the enactment of this Act [Dec. 16, 2003]."

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-296 effective on the date of transfer of
    the Coast Guard to the Department of Homeland Security, see section
    1704(g) of Pub. L. 107-296, set out as a note under section 101 of
    Title 10, Armed Forces.

                     EFFECTIVE DATE OF 1973 AMENDMENT                 
      Amendment by Pub. L. 93-43 effective June 18, 1973, see section
    10(a) of Pub. L. 93-43, set out as an Effective Date note under
    section 2400 of this title.

-End-



-CITE-
    38 USC Sec. 6106                                            01/03/2007

-EXPCITE-
    TITLE 38 - VETERANS' BENEFITS
    PART IV - GENERAL ADMINISTRATIVE PROVISIONS
    CHAPTER 61 - PENAL AND FORFEITURE PROVISIONS

-HEAD-
    Sec. 6106. Misuse of benefits by fiduciaries

-STATUTE-
      (a) Fee Forfeiture in Case of Benefit Misuse by Fiduciaries. - A
    fiduciary may not collect a fee from a beneficiary for any month
    with respect to which the Secretary or a court of competent
    jurisdiction has determined that the fiduciary misused all or part
    of the individual's benefit, and any amount so collected by the
    fiduciary as a fee for such month shall be treated as a misused
    part of the individual's benefit.
      (b) Misuse of Benefits Defined. - For purposes of this chapter,
    misuse of benefits by a fiduciary occurs in any case in which the
    fiduciary receives payment, under any of laws administered by the
    Secretary, for the use and benefit of a beneficiary and uses such
    payment, or any part thereof, for a use other than for the use and
    benefit of such beneficiary or that beneficiary's dependents.
    Retention by a fiduciary of an amount of a benefit payment as a
    fiduciary fee or commission, or as attorney's fees (including
    expenses) and court costs, if authorized by the Secretary or a
    court of competent jurisdiction, shall be considered to be for the
    use or benefit of such beneficiary.
      (c) Regulations. - The Secretary may prescribe by regulation the
    meaning of the term "use and benefit" for purposes of this section.

-SOURCE-
    (Added Pub. L. 108-454, title V, Sec. 503(a)(1), Dec. 10, 2004, 118
    Stat. 3619.)


-MISC1-
                              EFFECTIVE DATE                          
      Section applicable with respect to any determinations by the
    Secretary of Veterans Affairs made after Dec. 10, 2004, of misuse
    of funds by a fiduciary, see section 507(b)(2) of Pub. L. 108-454,
    set out as an Effective Date of 2004 Amendment note under section
    5312 of this title.

-End-



-CITE-
    38 USC Sec. 6107                                            01/03/2007

-EXPCITE-
    TITLE 38 - VETERANS' BENEFITS
    PART IV - GENERAL ADMINISTRATIVE PROVISIONS
    CHAPTER 61 - PENAL AND FORFEITURE PROVISIONS

-HEAD-
    Sec. 6107. Reissuance of benefits

-STATUTE-
      (a) Negligent Failure by Secretary. - (1) In any case in which
    the negligent failure of the Secretary to investigate or monitor a
    fiduciary results in misuse of benefits by the fiduciary, the
    Secretary shall pay to the beneficiary or the beneficiary's
    successor fiduciary an amount equal to the amount of benefits that
    were so misused.
      (2) There shall be considered to have been a negligent failure by
    the Secretary to investigate and monitor a fiduciary in the
    following cases:
        (A) A case in which the Secretary failed to review a
      fiduciary's accounting within 60 days of the date on which that
      accounting is scheduled for review.
        (B) A case in which the Secretary was notified of allegations
      of misuse, but failed to act within 60 days of the date of such
      notification to terminate the fiduciary.
        (C) In any other case in which actual negligence is shown.

      (b) Reissuance of Misused Benefits in Other Cases. - (1) In any
    case in which a fiduciary described in paragraph (2) misuses all or
    part of an individual's benefit paid to such fiduciary, the
    Secretary shall pay to the beneficiary or the beneficiary's
    successor fiduciary an amount equal to the amount of such benefit
    so misused.
      (2) Paragraph (1) applies to a fiduciary that - 
        (A) is not an individual; or
        (B) is an individual who, for any month during a period when
      misuse occurs, serves 10 or more individuals who are
      beneficiaries under this title.

      (3) In any other case in which the Secretary obtains recoupment
    from a fiduciary who has misused benefits, the Secretary shall
    promptly remit payment of the recouped amounts to the beneficiary
    or the beneficiary's successor fiduciary as the case may be.
      (c) Limitation on Total Amount Paid. - The total of the amounts
    paid to a beneficiary (or a beneficiary's successor fiduciary)
    under this section may not exceed the total benefit amount misused
    by the fiduciary with respect to that beneficiary.
      (d) Recoupment of Amounts Reissued. - In any case in which the
    Secretary reissues a benefit payment (in whole or in part) under
    subsection (a) or (b), the Secretary shall make a good faith effort
    to obtain recoupment from the fiduciary to whom the payment was
    originally made.

-SOURCE-
    (Added Pub. L. 108-454, title V, Sec. 503(a)(1), Dec. 10, 2004, 118
    Stat. 3619.)


-MISC1-
                              EFFECTIVE DATE                          
      Section applicable with respect to any determinations by the
    Secretary of Veterans Affairs made after Dec. 10, 2004, of misuse
    of funds by a fiduciary, see section 507(b)(2) of Pub. L. 108-454,
    set out as an Effective Date of 2004 Amendment note under section
    5312 of this title.

-End-



-CITE-
    38 USC Sec. 6108                                            01/03/2007

-EXPCITE-
    TITLE 38 - VETERANS' BENEFITS
    PART IV - GENERAL ADMINISTRATIVE PROVISIONS
    CHAPTER 61 - PENAL AND FORFEITURE PROVISIONS

-HEAD-
    Sec. 6108. Authority for judicial orders of restitution

-STATUTE-
      (a) Any Federal court, when sentencing a defendant convicted of
    an offense arising from the misuse of benefits under this title,
    may order, in addition to or in lieu of any other penalty
    authorized by law, that the defendant make restitution to the
    Department.
      (b) Sections 3612, 3663, and 3664 of title 18 shall apply with
    respect to the issuance and enforcement of orders of restitution
    under subsection (a). In so applying those sections, the Department
    shall be considered the victim.
      (c) If the court does not order restitution, or orders only
    partial restitution, under subsection (a), the court shall state on
    the record the reasons therefor.
      (d) Amounts received in connection with misuse by a fiduciary of
    funds paid as benefits under laws administered by the Secretary
    shall be paid to the individual whose benefits were misused. If the
    Secretary has previously reissued the misused benefits, the amounts
    shall be treated in the same manner as overpayments recouped by the
    Secretary and shall be deposited to the credit of the applicable
    revolving fund, trust fund, or appropriation.

-SOURCE-
    (Added Pub. L. 108-454, title V, Sec. 504(b)(1), Dec. 10, 2004, 118
    Stat. 3621.)


-MISC1-
                              EFFECTIVE DATE                          
      Section effective on the first day of the seventh month beginning
    after Dec. 10, 2004, see section 507(a) of Pub. L. 108-454, set out
    as an Effective Date of 2004 Amendment note under section 5312 of
    this title.

-End-