Being accused of committing fraud against the federal government is a serious matter. If you are a current or former federal employee suspected of making false statements to the government connected to receiving compensation, you could be charged with a federal crime under Title 18 U.S. Code 1920.

Title 18 U.S.C. 1920 is the federal law prohibiting employee compensation fraud by knowingly making false statements.

This accusation will lead to a legal process that includes investigation, arrest, arraignment, trial, and potential sentencing. If convicted, depending on the dollar amount in question, you could face up to five years in federal prison, a significant and life-altering consequence.

18 U.S.C. 1920, False Statement or Fraud to Obtain Federal Employees' Compensation, says, "Whoever knowingly and willfully falsifies, conceals, or covers up a material fact, or makes a false, fictitious, or fraudulent statement or representation, or makes or uses a false statement or report knowing the same to contain any false, fictitious, or fraudulent statement or entry in connection with the application for or receipt of compensation or other benefit or payment under subchapter I or III of chapter 81 of title 5, shall be guilty of perjury, and on conviction thereof shall be punished by a fine under this title, or by imprisonment for not more than 5 years, or both; but if the amount of the benefits falsely obtained does not exceed $1,000, such person shall be punished by a fine under this title, or by imprisonment for not more than 1 year, or both."

What the Law Says

As noted, 18 U.S. Code 1920 makes it a crime to intentionally provide false information or conceal facts to receive federal workers' compensation benefits.

These benefits are administered under specific programs designed to assist federal employees who are injured or become ill in the course of their duties. The law aims to protect the integrity of these benefit programs by penalizing fraudulent activities.

Specifically, Section 1920 states that anyone who knowingly and willfully falsifies, conceals, or covers up a material fact, or makes a false, fictitious, or fraudulent statement or representation in connection with a claim for these benefits is guilty of a federal crime.

This broad language encompasses a wide range of conduct, from outright lies on an application to concealing information that could impact your eligibility for payments. It's crucial to be mindful of this broad scope in all your dealings with federal benefits.

Proving the Crime

For the government to secure a conviction under 18 U.S.C. 1920, a prosecutor must prove several key elements beyond a reasonable doubt. These include:

• You made a false statement, used a document containing a false statement, or intentionally concealed a material fact. A "material fact" is a piece of information that has a natural tendency to influence the agency's decision regarding your benefits.
• You acted knowingly and willingly, with the specific intent to deceive. "Knowingly" means you were aware that your statement was untrue or that you were concealing information. "Willfully" means you acted intentionally and with a bad purpose, not by accident or mistake. The government must show that you intended to break the law.
• You did so for the purposes of receiving compensation or benefits from the government. The act must be related to an application for, or the receipt of, compensation or benefits under the federal employees' compensation program.

Examples

EXAMPLE 1: Tom, a federal employee, claims a back injury from lifting heavy boxes at work and files a workers' compensation claim. He submits a falsified medical report exaggerating his injury to secure higher compensation. However, surveillance footage later shows Tom engaging in strenuous activities, like weightlifting at a gym, during his claimed incapacity. Tom may be charged under 18 U.S.C. 1920.

EXAMPLE 2: Gina is a former federal employee who is receiving workers' compensation benefits for a workplace injury that allegedly prevents her from working. However, Gina secretly takes on a part-time job at a private company and fails to report this income to the federal agency administering her benefits. By concealing her employment and continuing to collect benefits under false pretenses, Gina may be charged under U.S.C. 1920.

Potential Penalties

The penalties for a conviction under U.S.C. 1920 are significant and are tied to the value of the benefits fraudulently obtained.

• Misdemeanor Conviction: If the value of the benefits obtained is $1,000 or less, the potential penalties include a fine, imprisonment for up to one year, or both.
• Felony Conviction: If the amount of benefits involved exceeds $1,000, the conviction can result in a fine under this title, imprisonment for up to five years, or both.

In addition to criminal penalties, a conviction will likely require you to pay restitution for the full amount of the benefits you wrongfully received.

Related Federal Offenses

18 U.S. Code Chapter 93 Part I, Public Officers and Employees, has several related federal statutes, including the following:

• 18 U.S.C. 1901. Collecting or disbursing officer trading in public property
• 18 U.S.C. 1902. Disclosure of crop information and speculation thereon
• 18 U.S.C. 1903. Speculation in stocks or commodities affects crop insurance
• 18 U.S.C. 1905. Disclosure of confidential information generally
• 18 U.S.C. 1906. Disclosure of information from a bank examination report
• 18 U.S.C. 1907. Disclosure of information by a farm credit examiner
• 18 U.S.C. 1909. Examiner performing other services
• 18 U.S.C. 1910. Nepotism in the appointment of a receiver or trustee
• 18 U.S.C. 1911. Receiver mismanaging property
• 18 U.S.C. 1912. Unauthorized fees for the inspection of vessels
• 18 U.S.C. 1913. Lobbying with appropriated money
• 18 U.S.C. 1915. Compromise of customs liabilities
• 18 U.S.C. 1916. Unauthorized employment and disposition of lapsed appropriations
• 18 U.S.C. 1917. Interference with civil service examinations
• 18 U.S.C. 1918. Disloyalty and asserting the right to strike against the Government
• 18 U.S.C. 1919. False statement to obtain unemployment compensation for Federal service
• 18 U.S.C. 1920. False statement or fraud to obtain Federal employees' compensation
• 18 U.S.C. 1922. False or withheld report concerning Federal employees' compensation
• 18 U.S.C. 1923. Fraudulent receipt of payments for missing persons
• 18 U.S.C. 1924. Unauthorized removal and retention of classified documents or material

Common Defenses

Being charged under this statute does not automatically mean you will be convicted. A skilled federal criminal defense attorney can employ a number of effective defense strategies, depending on the specific facts of your case. These include, but are not limited to:

• Lack of Intent: The cornerstone of the prosecution's case is proving you acted "knowingly and willfully." Your attorney may show that any misstatement was an unintentional mistake, a misunderstanding of the complex forms, or the result of a simple error. If you did not intend to defraud the government, you have not committed this crime.
• Not a Material Fact: The defense may argue that the information you allegedly falsified or concealed was not "material." If the information had not influenced the agency's decision to grant or continue your benefits, then its falsification does not meet the standard for a crime under this statute.
• Good Faith: If you can demonstrate that you had a good faith belief that the information you provided was true and accurate at the time, this can negate the element of willful intent.

For more information, contact our federal criminal defense law firm, Eisner Gorin LLP, located in Los Angeles, CA.

Related Content:

• Title 18 U.S. Code 1920 
• Federal False Statements
• Defend White-Collar Crimes
• Federal Plea Agreements