Observations made, Identity of alleged violators, victims, and possible witnesses, How to contact these parties in the future, Relevant conversations with or statements by these parties, and Photographic evidence or copies of records or correspondence pertaining to the alleged conduct, when relevant. For sanctions based on allegations of fraud or other criminal activity, see the "Fraud and Other Criminal Activity" heading in Topic 3(f) of this chapter for standards of evidence. Continued on next page 3. Regional Loan Center Responsibilities and Procedures for Sanctions, Continued e. Refer Cases of Criminal Conduct to the IG Ensure allegations resulting from RLC investigations are not frivolous. RLC management should discuss allegations with the investigating employee and CO Loan Policy before referral to IG. Refer all well-founded allegations of fraud or criminal conduct relating to the Loan Guaranty Program to the Regional Office of jurisdiction’s IG. Include, when available: Description of alleged violation, including date and location; Identities of alleged violators, victims, and possible witnesses; Estimate of loss to the government or individual; Copy of any field examination or RLC investigation of the matter; Copy of records related to participant's fraudulent or criminal activity such as, electronic records, application(s) for loan guaranty benefits, verification(s) of employment and deposit, and contracts, etc.; Identity and location of custodian of above records; Letters, memoranda, notes, and reports of contact, etc., related to the fraudulent or criminal conduct; and A request that the IG provide the RLC with a report containing evidence admissible in an administrative hearing which may sustain imposition of sanctions. Provide a copy of the referral to CO Loan Policy. Verbal referrals may be made in unusual situations requiring immediate action. Confirm in writing, as soon as possible, thereafter. A sanction based on allegations of fraud or other criminal activity may be imposed either before or after referral to and investigation by the IG or
3. Regional Loan Center Responsibilities and Procedures for Sanctions, Continued g. Impose LDP, If Appropriate, continued Before imposing an LDP against an interstate participant operating in areas beyond your RLC's jurisdiction: Contact all RLCs serving jurisdictions in which the participant operates to find out whether: They have experienced problems with the participant, and They wish to impose sanctions against the participant in their jurisdictions and to what extent. Obtain concurrence of CO on chosen course of action. Coordinate the contents of the LDP notices between all affected RLCs. An RLC may implement an LDP to a greater or lesser degree within its jurisdiction than another RLC, or choose not to take action when another RLC does. Ensure that the reasons for the difference in treatment are supported by adequate documentation of all relevant facts, including any differences in the participant's activities in each jurisdiction. h. Arrange Formal Hearing If a participant against whom debarment, suspension, or an LDP is imposed requests a formal hearing, CO Loan Policy may first encourage the participant to have an informal meeting with the RLC to resolve the issues. Make every effort toward informal resolution to avoid the time and cost of a formal hearing. If informal means of resolution become exhausted, arrange a hearing date, in consultation with CO Loan Policy. Continued on next page 3. Regional Loan Center Responsibilities and Procedures for Sanctions, Continued h. Arrange Formal Hearing, continued The hearing is to begin within 30-business days of receipt from the request, unless postponed because: Participant requests postponement and presents a reasonable basis, or VA requires additional time to conclude its investigations, or The case has been, or is being, referred by the IG to a U.S. Attorney or the Department of Justice for consideration of criminal prosecution, or criminal prosecution has been initiated, but has not been concluded.