737 
SEC. 10306. SUSPENSION AND DEBARMENT. 
(a) ELIGIBILITY TO RECEIVE FUNDS.—The Presi-
dent shall issue and enforce regulations determining the 
eligibility of any person to receive funds made available 
under this Act. 
(b) SUSPENSION.—The regulations described in sub-
section (a) shall provide for the suspension of eligibility 
of a person for a temporary period pending the completion 
of an investigation and any resulting judicial or debarment 
proceedings, upon cause for belief that such person or an 
affiliate thereof probably has undertaken conduct which 
constitutes a cause for debarment. 
(c) DEBARMENT.—A person may be debarred from 
further receipt of funds made available under this Act, and 
from participating in any contract or agreement regarding 
the use of funds made available under this Act, for— 
(1) conviction of or civil judgment for— 
(A) commission of fraud or a criminal of-
fense in connection with obtaining, attempting 
to obtain, or performing a public or private 
agreement or transaction; 
(B) violation of Federal or State antitrust 
statutes, including those proscribing price fixing 
between competitors, allocation of customers be-
tween competitors, and bid rigging; 
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(C) commission of embezzlement, theft, 
forgery, bribery, falsification or destruction of 
records, making false statements, tax evasion, 
receiving stolen property, making false claims 
or obstruction of justice; or 
(D) commission of any other offense indi-
cating a lack of business integrity or business 
honesty; 
(2) violation of the terms of a public agreement 
or transaction so serious as to affect the integrity of 
a program under this Act, such as— 
(A) a willful failure to perform in accord-
ance with the terms of one or more public 
agreements or transactions; 
(B) a history of failure to perform or of 
unsatisfactory performance of one or more pub-
lic agreements or transactions; or 
(C) a willful violation of a statutory or reg-
ulatory provision or requirement applicable to a 
public agreement or transaction; or 
(3) any of the following causes: 
(A) knowingly doing business with an ineli-
gible person; 
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(B) failure to pay a single substantial debt, 
or a number of outstanding debts, owed to any 
Federal agency or instrumentality; 
(C) engaging in any of the behavior de-
scribed in section 103(8) or 103(9) of the Traf-
ficking Victims Protection Act of 2000 (Public 
Law 106–386); or 
(D) any other cause of a serious or com-
pelling nature. 
(d) REINSTATEMENT.—Reinstatement of eligibility in 
each particular case shall be subject to such conditions 
as the President shall direct. 
SEC. 10307. FALSE CLAIMS AND INELIGIBLE COMMODITIES. 
(a) IN GENERAL.—Any person who makes or causes 
to be made or presents or causes to be presented to any 
bank or other financial institution or to any officer, agent, 
or employee of any agency of the United States Govern-
ment a claim for payment from funds made available 
under this Act for the purposes of furnishing assistance 
and who knows the claim to be false, fraudulent, or ficti-
tious or to cover a commodity or commodity-related service 
determined by the President to be ineligible for payment 
from funds made available under this Act, or who uses 
to support such claim any certification, statement, or 
entry on any contract, bill of lading, Government or com-
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mercial invoice, or Government form, which such person 
knows, or in the exercise of prudent business management 
should know, to contain false, fraudulent, or fictitious in-
formation, or who uses or engages in any other fraudulent 
trick, scheme, or device for the purpose of securing or ob-
taining, or aiding to secure or obtain, for any person any 
benefit or payment from funds so made available under 
this Act in connection with the negotiation, procurement, 
award, or performance of a contract financed with funds 
so made available under this Act, and any person who en-
ters into an agreement, combination or conspiracy to do 
so— 
(1) shall pay to the United States an amount 
equal to 25 per centum of any amount thereby 
sought to be wrongfully secured or obtained but not 
actually received; 
(2) shall forfeit and refund any payment, com-
pensation, loan, commission, or advance received as 
a result thereof; and 
(3) shall, in addition, pay to the United States 
for each such act— 
(A) the sum of $2,000 and double the 
amount of any damage which the United States 
may have sustained by reason thereof; or 
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(B) an amount equal to 50 per centum of 
any such payment, compensation, loan, commis-
sion, or advance so received, whichever is the 
greater, together with the costs of suit. 
(b) JUDICIAL PROCEEDING AND WITHHOLDING OF 
FUNDS.— 
(1) IN GENERAL.—In order to secure recovery 
under this section, the President may, as the Presi-
dent deems appropriate— 
(A) institute suit in the United States dis-
trict court for any judicial district in which the 
person alleged to have performed or partici-
pated in an act described by this section may 
reside or may be found; and 
(B) upon posting by registered mail to 
such person a notice of claim describing the 
basis therefor and identifying the funds to be 
withheld, withhold from funds owed by any 
agency of the United States Government to 
such person an amount equal to the refund, 
damages, liquidated damages, and exemplary 
damages claimed by the United States under 
this section. 
(2) EFFECT
OF
WITHHOLDING.—Any such 
withholding of funds from any person shall con-
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