Title 15 — Commerce and Trade — § 645. Offenses and penalties
Summary
Section 645 of Title 15, Offenses and penalties (15 U.S.C. § 645), is printed here with amendment and editorial notes. A knowingly false statement or willful overvaluation of security to obtain a loan or influence the Administration is punishable by a fine of not more than $5,000 or imprisonment for not more than two years, or both. Embezzlement or false entries by a person connected with the Administration carry a fine of not more than $10,000 or up to five years. Misrepresenting a concern as a small business concern or a similar status to obtain a contract can bring a fine of not more than $500,000 or imprisonment for not more than 10 years, plus suspension, debarment and ineligibility for up to 3 years. Section 645a, on annual reports of suspensions and debarments proposed by the Small Business Administration, follows.
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§ 645 TITLE 15—COMMERCE AND TRADE Page 1002
(C) best practices identified under para-
graph (4) during such 1-year period.
(c) Membership
The Council shall be composed of the following
members:
(1) The Administrator of the Small Business
Administration (or the designee of the Admin-
istrator).
(2) The Director of the Minority Business
Development Agency.
(3) The head of each Office of Small and Dis-
advantaged Business Utilization in each Fed-
eral agency having procurement powers.
(d) Chairman
The Council shall be chaired by the Adminis-
trator of the Small Business Administration (or
the designee of the Administrator).
(e) Meetings
The Council shall meet at the call of the
chairman as necessary to consider proposed pro-
curement regulations affecting the small busi-
ness community.
(f) Consideration of Council comments
The Federal Acquisition Regulatory Council
and other appropriate regulatory authorities
shall consider comments submitted in a timely
manner pursuant to subsection (b)(2).
(Pub. L. 103–355, title VII, § 7104, Oct. 13, 1994, 108
Stat. 3369; Pub. L. 112–239, div. A, title XVI,
§ 1692, Jan. 2, 2013, 126 Stat. 2089.)
Editorial Notes
CODIFICATION
Section was formerly set out as a note under section
644 of this title.
Section was enacted as part of the Federal Acquisi-
tion Streamlining Act of 1994, and not as part of the
Small Business Act which comprises this chapter.
AMENDMENTS
2013—Subsec. (b)(3) to (5). Pub. L. 112–239, § 1692(a),
added pars. (3) to (5).
Subsec. (c)(3). Pub. L. 112–239, § 1692(b), struck out
‘‘(established under section 644(k) of this title)’’ after
‘‘Utilization’’.
Subsec. (d). Pub. L. 112–239, § 1692(c), inserted ‘‘(or the
designee of the Administrator)’’ after ‘‘Small Business
Administration’’.
§ 645. Offenses and penalties
(a) False statements; overvaluation of securities
Whoever makes any statement knowing it to
be false, or whoever willfully overvalues any se-
curity, for the purpose of obtaining for himself
or for any applicant any loan, or extension
thereof by renewal, deferment of action, or oth-
erwise, or the acceptance, release, or substi-
tution of security therefor, or for the purpose of
influencing in any way the action of the Admin-
istration, or for the purpose of obtaining money,
property, or anything of value, under this chap-
ter, shall be punished by a fine of not more than
$5,000 or by imprisonment for not more than two
years, or both.
(b) Embezzlement, etc.
Whoever, being connected in any capacity
with the Administration, (1) embezzles, ab-
stracts, purloins, or willfully misapplies any
moneys, funds, securities, or other things of
value, whether belonging to it or pledged or oth-
erwise entrusted to it, or (2) with intent to de-
fraud the Administration or any other body
politic or corporate, or any individual, or to de-
ceive any officer, auditor, or examiner of the
Administration, makes any false entry in any
book, report, or statement of or to the Adminis-
tration, or, without being duly authorized,
draws any order or issues, puts forth, or assigns
any note, debenture, bond, or other obligation,
or draft, bill of exchange, mortgage, judgment,
or decree thereof, or (3) with intent to defraud
participates or shares in or receives directly or
indirectly any money, profit, property, or ben-
efit through any transaction, loan, commission,
contract, or any other act of the Administra-
tion, or (4) gives any unauthorized information
concerning any future action or plan of the Ad-
ministration which might affect the value of se-
curities, or, having such knowledge, invests or
speculates, directly or indirectly, in the securi-
ties or property of any company or corporation
receiving loans or other assistance from the Ad-
ministration, shall be punished by a fine of not
more than $10,000 or by imprisonment for not
more than five years, or both.
(c) Concealment, etc.
Whoever, with intent to defraud, knowingly
conceals, removes, disposes of, or converts to his
own use or to that of another, any property
mortgaged or pledged to, or held by, the Admin-
istration, shall be fined not more than $5,000 or
imprisoned not more than five years, or both;
but if the value of such property does not exceed
$100, he shall be fined not more than $1,000 or
imprisoned not more than one year, or both.
(d) Misrepresentation, etc.
(1) Whoever misrepresents the status of any
concern or person as a ‘‘small business con-
cern’’, a ‘‘qualified HUBZone small business con-
cern’’, a ‘‘small business concern owned and con-
trolled by service-disabled veterans’’, a ‘‘small
business concern owned and controlled by vet-
erans’’, a ‘‘small business concern owned and
controlled by socially and economically dis-
advantaged individuals’’, or a ‘‘small business
concern owned and controlled by women’’, in
order to obtain for oneself or another any—
(A) prime contract to be awarded pursuant
to section 637, 638, 644, 657a, 657f, or 657f–1 of
this title;
(B) subcontract to be awarded pursuant to
section 637(a) of this title;
(C) subcontract that is to be included as part
or all of a goal contained in a subcontracting
plan required pursuant to section 637(d) of this
title; or
(D) prime or subcontract to be awarded as a
result, or in furtherance, of any other provi-
sion of Federal law that specifically references
section 637(d) of this title for a definition of
program eligibility,1 shall be subject to the
penalties and remedies described in paragraph
(2).
(2) Any person who violates paragraph (1)
shall—
1 So in original. Following provision probably should be set
flush with par. (1).
Page 1003 TITLE 15—COMMERCE AND TRADE § 645
(A) be punished by a fine of not more than
$500,000 or by imprisonment for not more than
10 years, or both;
(B) be subject to the administrative rem-
edies prescribed by the Program Fraud Civil
Remedies Act of 1986 2 (31 U.S.C. 3801–3812);
(C) be subject to suspension and debarment
as specified in subpart 9.4 of title 48, Code of
Federal Regulations (or any successor regula-
tion); and
(D) be ineligible for participation in any pro-
gram or activity conducted under the author-
ity of this chapter or the Small Business In-
vestment Act of 1958 (15 U.S.C. 661 et seq.) for
a period not to exceed 3 years.
(3) LIMITATION ON LIABILITY.—This subsection
shall not apply to any conduct in violation of
subsection (a) if the defendant acted in good
faith reliance on a written advisory opinion
from a Small Business Development Center (as
defined in this chapter), or an entity partici-
pating in the Procurement Technical Assistance
Cooperative Agreement Program defined in
chapter 388 of title 10; however nothing in this
chapter shall obligate either entity to provide
such a letter nor shall the provision of such a
letter in any way render the providing entity
liable to the business concern should the Admin-
istrator later determine that the concern is not
a small business concern. Upon issuance of an
advisory opinion under this paragraph, the enti-
ty issuing the advisory opinion shall remit a
copy of the opinion to the General Counsel of
the Administration, who may reject the advi-
sory opinion. If the General Counsel of the Ad-
ministration rejects the advisory opinion, the
Administration shall notify the entity issuing
the advisory opinion and the recipient of the
opinion, after which time the business concern
may not rely upon the opinion.
(e) Representations under subsection (d) to be in
writing
Any representation of the status of any con-
cern or person as a ‘‘small business concern’’, a
‘‘HUBZone small business concern’’, a ‘‘small
business concern owned and controlled by serv-
ice-disabled veterans’’, a ‘‘small business con-
cern owned and controlled by veterans’’, a
‘‘small business concern owned and controlled
by socially and economically disadvantaged in-
dividuals’’, or a ‘‘small business concern owned
and controlled by women’’ in order to obtain
any prime contract or subcontract enumerated
in subsection (d) of this section shall be in writ-
ing.
(f) Misrepresentation of compliance with section
636(j)(10)(I)
Whoever falsely certifies past compliance with
the requirements of section 636(j)(10)(I) of this
title shall be subject to the penalties prescribed
in subsection (d).
(g) Subcontracting limitations
(1) In general
Whoever violates a requirement established
under section 657s of this title shall be subject
to the penalties prescribed in subsection (d),
2 See References in Text note below.
except that, for an entity that exceeded a lim-
itation on subcontracting under such section,
the fine described in subsection (d)(2)(A) shall
be treated as the greater of—
(A) $500,000; or
(B) the dollar amount expended, in excess
of permitted levels, by the entity on sub-
contractors.
(2) Monitoring
Not later than 1 year after January 2, 2013,
the Administrator shall take such actions as
are necessary to ensure that an existing Fed-
eral subcontracting reporting system is modi-
fied to notify the Administrator, the appro-
priate Director of the Office of Small and Dis-
advantaged Business Utilization, and the ap-
propriate contracting officer if a requirement
established under section 657s of this title is
violated.
(Pub. L. 85–536, § 2[16], July 18, 1958, 72 Stat. 395;
Pub. L. 88–264, § 2, Feb. 5, 1964, 78 Stat. 8; Pub. L.
99–272, title XVIII, § 18009, Apr. 7, 1986, 100 Stat.
368; Pub. L. 100–656, title IV, § 405, Nov. 15, 1988,
102 Stat. 3875; Pub. L. 103–355, title VII, § 7106(c),
Oct. 13, 1994, 108 Stat. 3376; Pub. L. 105–85, div. A,
title X, § 1073(g)(4), Nov. 18, 1997, 111 Stat. 1906;
Pub. L. 105–135, title VI, § 603(c), Dec. 2, 1997, 111
Stat. 2632; Pub. L. 112–239, div. A, title XVI,
§§ 1652, 1681(a), 1682(a), Jan. 2, 2013, 126 Stat. 2081,
2085, 2086; Pub. L. 116–283, div. A, title VIII,
§ 862(d)(2), Jan. 1, 2021, 134 Stat. 3780; Pub. L.
117–81, div. A, title XVII, § 1702(e)(6), Dec. 27,
2021, 135 Stat. 2157.)
Editorial Notes
REFERENCES IN TEXT
The Program Fraud Civil Remedies Act of 1986 (31
U.S.C. 3801–3812), referred to in subsec. (d)(2)(B), subse-
quently renamed the Administrative False Claims Act,
is subtitle B of title VI of Pub. L. 99–509, Oct. 21, 1986,
100 Stat. 1934, which is classified generally to chapter 38
(§ 3801 et seq.) of Title 31, Money and Finance. For com-
plete classification of this Act to the Code, see Short
Title note set out under section 3801 of Title 31 and Ta-
bles.
The Small Business Investment Act of 1958, referred
to in subsec. (d)(2)(D), is Pub. L. 85–699, Aug. 21, 1958, 72
Stat. 689, which is classified principally to chapter 14B
(§ 661 et seq.) of this title. For complete classification of
this Act to the Code, see Short Title note set out under
section 661 of this title and Tables.
PRIOR PROVISIONS
Prior similar provisions were contained in section 209
of act July 30, 1953, ch. 282, title II, 67 Stat. 237, which
was previously classified to section 638 of this title. The
provisions of section 216 of act July 30, 1953, formerly
classified to this section, were transferred to section
2[8] of Pub. L. 85–536, which was classified to section
637(c) of this title prior to repeal by Pub. L. 102–191. See
section 656 of this title.
AMENDMENTS
2021—Subsec. (d)(1). Pub. L. 116–283, § 862(d)(2)(A)(i),
substituted ‘‘ ‘small business concern’,’’ for ‘‘ ‘small
business concern’,,’’ and ‘‘, a ‘small business concern
owned and controlled by service-disabled veterans’, a
‘small business concern owned and controlled by vet-
erans’, a ‘small business concern owned and controlled
by socially and economically disadvantaged individ-
uals’ ’’ for ‘‘, a ‘small business concern owned and con-
trolled by socially and economically disadvantaged in-
dividuals’ ’’ in introductory provisions.
§ 645a TITLE 15—COMMERCE AND TRADE Page 1004
Subsec. (d)(1)(A). Pub. L. 116–283, § 862(d)(2)(A)(ii), sub-
stituted ‘‘section 637, 638, 644, 657a, 657f, or 657f–1’’ for
‘‘section 638, 644, or 657a’’.
Subsec. (d)(3). Pub. L. 117–81 substituted ‘‘chapter
388’’ for ‘‘chapter 142’’.
Subsec. (e). Pub. L. 116–283, § 862(d)(2)(B), substituted
‘‘ ‘small business concern’,’’ for ‘‘ ‘small business con-
cern’,,’’ and ‘‘, a ‘small business concern owned and
controlled by service-disabled veterans’, a ‘small busi-
ness concern owned and controlled by veterans’, a
‘small business concern owned and controlled by so-
cially and economically disadvantaged individuals’ ’’
for ‘‘, a ‘small business concern owned and controlled
by socially and economically disadvantaged individ-
uals’ ’’.
2013—Subsec. (d)(2)(C). Pub. L. 112–239, § 1682(a),
struck out ‘‘on the basis that such misrepresentation
indicates a lack of business integrity that seriously and
directly affects the present responsibility to perform
any contract awarded by the Federal Government or a
subcontract under such a contract’’ after ‘‘regula-
tion)’’.
Subsec. (d)(3). Pub. L. 112–239, § 1681(a), added par. (3).
Subsec. (g). Pub. L. 112–239, § 1652, added subsec. (g).
1997—Subsec. (d)(1). Pub. L. 105–135, § 603(c)(1)(A), in-
serted ‘‘, a ‘qualified HUBZone small business con-
cern’,’’ after ‘‘ ‘small business concern’,’’.
Pub. L. 105–85 substituted ‘‘concern owned and con-
trolled by women’’ for ‘‘concerns owned and controlled
by women’’.
Subsec. (d)(1)(A). Pub. L. 105–135, § 603(c)(1)(B), sub-
stituted ‘‘section 638, 644, or 657a’’ for ‘‘section 638 or
644’’.
Subsec. (e). Pub. L. 105–135, § 603(c)(2), inserted ‘‘, a
‘HUBZone small business concern’,’’ after ‘‘ ‘small busi-
ness concern’,’’.
Pub. L. 105–85 substituted ‘‘concern owned and con-
trolled by women’’ for ‘‘concerns owned and controlled
by women’’.
1994—Subsec. (d)(1). Pub. L. 103–355, § 7106(c)(1), sub-
stituted ‘‘, a ‘small business concern owned and con-
trolled by socially and economically disadvantaged in-
dividuals’, or a ‘small business concerns owned and con-
trolled by women’ ’’ for ‘‘or ‘small business concern
owned and controlled by socially and economically dis-
advantaged individuals’ ’’.
Subsec. (e). Pub. L. 103–355, § 7106(c)(2), substituted
‘‘, a ‘small business concern owned and controlled by
socially and economically disadvantaged individuals’,
or a ‘small business concerns owned and controlled by
women’ ’’ for ‘‘or ‘small business concern owned and
controlled by socially and economically disadvantaged
individuals’ ’’.
1988—Subsec. (d). Pub. L. 100–656, § 405(a), amended
subsec. (d) generally, designating existing provisions as
par. (1), redesignating former pars. (1) to (4) as subpars.
(A) to (D), respectively, and in subpar. (D), substituting
‘‘subject to the penalties and remedies described in
paragraph (2)’’ for ‘‘punished by a fine of not more than
$50,000 or by imprisonment for not more than five
years, or both’’, and adding par. (2).
Subsec. (f). Pub. L. 100–656, § 405(b), added subsec. (f).
1986—Subsecs. (d), (e). Pub. L. 99–272 added subsecs.
(d) and (e).
1964—Subsec. (c). Pub. L. 88–264 added subsec. (c).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105–135 effective Oct. 1, 1997,
see section 3 of Pub. L. 105–135, set out as a note under
section 631 of this title.
EFFECTIVE DATE OF 1994 AMENDMENT
For effective date and applicability of amendment by
Pub. L. 103–355, see section 10001 of Pub. L. 103–355, set
out as a note under section 8752 of Title 10, Armed
Forces.
REGULATIONS
Pub. L. 112–239, div. A, title XVI, § 1681(b), Jan. 2, 2013,
126 Stat. 2085, provided that: ‘‘Not later than 270 days
after the date of enactment of this part [Jan. 2, 2013],
the Administrator of the Small Business Administra-
tion shall issue rules defining what constitutes an ade-
quate advisory opinion for purposes of section 16(d)(3)
of the Small Business Act [15 U.S.C. 645(d)(3)].’’
DEVELOPMENT AND PROMULGATION OF GUIDANCE
Pub. L. 112–239, div. A, title XVI, § 1682(b), Jan. 2, 2013,
126 Stat. 2086, provided that: ‘‘Not later than 270 days
after the date of enactment of this part [Jan. 2, 2013],
the Administrator of the Small Business Administra-
tion shall develop and promulgate guidance imple-
menting this section [amending this section and enact-
ing provisions set out as a note below].’’
PUBLICATION OF PROCEDURES REGARDING SUSPENSION
AND DEBARMENT
Pub. L. 112–239, div. A, title XVI, § 1682(c), Jan. 2, 2013,
126 Stat. 2086, provided that: ‘‘Not later than 270 days
after the date of enactment of this part [Jan. 2, 2013],
the Administrator [of the Small Business Administra-
tion] shall publish and maintain on the [Small Busi-
ness] Administration’s Web site the current standard
operating procedures of the Administration for suspen-
sion and debarment, and the name and contact infor-
mation for the individual designated by the Adminis-
trator as the senior individual responsible for suspen-
sion and debarment proceedings.’’
§ 645a. Annual report on suspensions and
debarments proposed by Small Business Ad-
ministration
(a) Report requirement
The Administrator of the Small Business Ad-
ministration shall submit each year to the Com-
mittee on Small Business and Entrepreneurship
of the Senate, and the Committee on Small
Business of the House of Representatives a re-
port on the suspension and debarment actions
taken by the Administrator during the year pre-
ceding the year of submission of the report.
(b) Matters covered
The report required by subsection (a) shall in-
clude the following information for the year
covered by the report:
(1) Number
The number of contractors proposed for sus-
pension or debarment.
(2) Source
The office within a Federal agency that
originated each proposal for suspension or de-
barment.
(3) Reasons
The reason for each proposal for suspension
or debarment.
(4) Results
The result of each proposal for suspension or
debarment, and the reason for such result.
(5) Referrals
The number of suspensions or debarments
referred to the Inspector General of the Small
Business Administration or another agency, or
to the Attorney General (for purposes of this
paragraph, the Administrator may redact
identifying information on names of compa-
nies or other information in order to protect
the integrity of any ongoing criminal or civil
investigation).
(Pub. L. 112–239, div. A, title XVI, § 1683, Jan. 2,
2013, 126 Stat. 2086.)
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