TN 84 (05-23)

GN 00502.133 Payee Applicant is a Felon or Fugitive or Has Been Convicted of Other Criminal Act

A. Individuals with Criminal History Barred from Serving as Representative Payee (Payee)

1. Policy for individuals convicted under Sections 208, 811, or 1632(a) of the Social Security Act

Individuals convicted under Sections 208, 811, or 1632(a) of the Social Security Act cannot serve as payee. Never appoint these individuals to serve as payee. There are no exceptions.

2. Policy for individuals considered fugitive felons

Section 103 of the Social Security Protection Act (SSPA) of 2004 provides that, effective April 1, 2005, fugitive felons are prohibited from serving as payees. Based on the settlement agreement reached in the Martinez et al. v. Astrue court case, effective April 1, 2009, a person is considered a fugitive felon and cannot serve as payee if they have an unsatisfied felony warrant for one of the following three offenses:

  • escape from custody (offense code 4901);

  • flight to avoid prosecution, confinement, etc. (offense code 4902); and

  • flight-escape (offense code 4999).

There are no exceptions to this prohibition; however, it only applies while the person has an unsatisfied felony warrant with offense codes 4901, 4902, or 4999. Once the warrant is satisfied, the individual may serve as a payee, unless other prohibitions exist. Even if the individual satisfied the warrant, you must carefully consider the nature of the crime and other relevant factors before selecting the individual as payee. You should not appoint the individual as payee if you determine that they may pose some risk to the beneficiary.

NOTE: The payee fugitive felon provisions violators do not include parole or probation violators or extend good cause to those who are fugitive felons with offense codes of 4901, 4902, or 4999.

3. Policy for RP committed RP related fraud

Individuals convicted of RP related fraud means the person was convicted of fraud directly related to their payee duties. These crimes appear on an Office of the Inspector General (OIG) list and appear in the electronic Representative Payee System (eRPS) as a remark. Do not appoint a payee applicant who has committed payee related fraud. There are NO exceptions to this rule including parents, spouses, grandparents, and guardians with custody.

4. Policy for individuals convicted of other crimes barring them from being a payee

Section 202 of the Strengthening Protections for Social Security Beneficiaries Act of 2018, bars an individual convicted of any of the following felonies or convicted of attempt or conspiracy in connection with the following felonies from serving as a payee unless the individual is the:

  • custodial parent of the minor child for whom the individual applies to serve;

  • custodial spouse of the beneficiary for whom the individual applies to serve;

  • custodial parent of an adult beneficiary who has a disability which began before the beneficiary attained age 22, for whom the individual applies to serve;

  • custodial court appointed guardian of a beneficiary for whom the individual applies to serve;

  • custodial grandparent of the minor grandchild for whom the individual applies to serve;

  • parent who was previously payee for their minor child who has since turned 18 and continues to be eligible for benefits; or

  • recipient of a presidential or gubernatorial pardon for the conviction.

The felony crimes that bar certain applicants from serving as a payee are:

a. Human Trafficking

Human Trafficking is the act of recruiting, transporting, transferring, harboring, or receiving a person through a use of force, coercion or other means, for the purpose of exploiting the person.

b. False Imprisonment

False imprisonment is the illegal confinement of one individual against their will by another individual in such a manner as to violate the confined individual’s right to be free from restraint of movement.

False imprisonment often involves physical force but such force is not always required. The threat of force or arrest, or a belief on the part of the person being restrained that force will be used, is sufficient.

c. Kidnapping

Kidnapping is the unlawful and non-consensual seizure of a person for the purpose of gaining a ransom or reward, facilitating the commission of a felony or a flight after the commission of a felony, terrorizing or inflicting bodily injury on the victim or a third person, or interfering with a government or political function.

d. Rape and Sexual Assault

Definitions of rape or sexual assault are:

  • Rape is a type of sexual assault usually involving sexual intercourse, initiated by one or more persons against another person without that person’s consent. The act may be carried out by physical force, coercion, abuse of authority, or with a person who is incapable of valid consent.

  • Sexual assault is an involuntary sexual act in which a person is threatened, coerced, or forced to engage in a sexual act against their will, or any sexual touching of a person who has not consented. This includes rape, inappropriate touching, forced kissing, child sexual abuse, or the torture of the victim in a sexual manner.

e. First-Degree Homicide

First-degree homicide is an unlawful killing that is both willful and premeditated, meaning that it was committed after planning or “lying in wait” for the victim.

f. Robbery

Robbery is theft or larceny of property or money through the offender’s use of physical force or fear against the victim. Where a deadly weapon such as a gun is used or the victim suffers injury. The robbery may be “armed” or “aggravated.” Unlike burglary, the crime of robbery requires the presence of a victim who suffers actual injury, or threatened with harm.

g. Fraud to obtain access to government assistance

Fraud to obtain access to government assistance is intentional misrepresentation, concealment, or withholding of information in order to get any, or increased, public assistance or food stamp benefits.

If someone intentionally signs any papers (application for benefits, questionnaire, or recertification papers) in which the information in the papers is not true, they have committed fraud. This is true even if they never end up receiving any public assistance or food stamps at all.

h. Fraud by scheme

Fraud schemes typically include three major elements: fraud objective, fraud method, and execution. Some common fraud schemes are:

  • Telemarketing fraud;

  • Investment-related scams;

  • Internet scams;

  • Credit card fraud;

  • Counterfeit prescription drug; and

  • Reverse mortgage scams.

i. Theft of Government Funds/Property

Theft of government funds/property is an act by which an individual embezzles, steals, misappropriates, or knowingly converts to their use or the use of another, or without authority, sells, conveys or disposes of any record, voucher, money, or thing of value of the United States or of any department or agency thereof. This offense also applies to someone who receives, conceals or retains the same with intent to convert it to their use or gain, knowing it to have been embezzled, stolen, misappropriated, or converted.

j. Abuse or Neglect

Abuse or neglect is any act or failure to act on the part of a parent, caretaker or spouse that results in death, serious physical or emotional harm, sexual abuse or exploitation, or an act or failure to act which presents an imminent risk of serious harm.

k. Forgery

Forgery is the act of making, drawing or altering a document in order to deceive people. This includes filling in blanks on a document containing a genuine signature, or materially altering or erasing an existing instrument. Instruments may include bills of exchange, promissory notes, checks, bonds, receipts, mortgages, deeds, public records, account books, and tickets or passes for transportation or events. An underlying intent to defraud, based on knowledge of the false nature of the instrument, must accompany the Act.

l. Identity Theft or Identity Fraud

Identity theft or identity fraud, refer to all types of crime in which someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception, typically for economic gain. Personal data may include a social security number, bank account or credit card number, telephone calling card number or other valuable identifying information that someone can use for profit.

A digest of State or Territory felony crimes associated with these barred crimes is located in GN 00502.301.

NOTE: If an individual is currently serving as payee and you discover they were convicted of one of these crimes, and they are not an exception as listed in GN 00502.133A.4 in this section, you must remove them as payee and develop for a new payee or consider direct payment to the beneficiary.

For information on determining capability for adult beneficiaries, see GN 00502.020.

For information on determining capability for children, see GN 00502.070.

For information on direct payment prohibitions, see GN 00502.001.

For information on documenting your determination, see GN 00502.133B.4.

5. Policy for representatives or healthcare providers barred under section 1136

Section 1136 of the Social Security Act indicates a representative or a health care provider assessed with a Civil Monetary Penalty under section 1129(a)(1) of the Social Security Act or convicted of certain violations under title XVIII of the United States Code may not participate in Social Security programs and therefore may not serve as a payee. The violations under title XVIII of the United States Code relate to the following:

  • Initial application for benefits;

  • Continuing entitlement to benefits;

  • Amount of benefits under Title II or Title XVI.

B. Procedure for Prohibiting an Applicant from Serving as a Payee

1. Felony under Sections 208, 811, or 1632(a)

Sections 208, 811, or 1632(a) of the Social Security Act define and provide penalties for Social Security fraud. Crimes described in these sections are felonies and include:

  • making any false statement or representation about earnings, factors of entitlement to or payment of benefits and factors in determining disability;

  • concealing knowledge of events affecting entitlement to or payment of benefits;

  • misuse of benefits;

  • Social Security number fraud; and

  • violation of disclosure laws.

When taking an application in eRPS, you will get the alert message “RP convicted under Sec 208/811/1632.” This remark indicates the applicant was convicted under one or more of these statutes. If you receive this remark, take the following actions in the order below:

  • do not collect any additional information and complete the payee application to non-select the payee applicant;

  • non-select this applicant on the Rep Payee Selection-Decision screen (MS 07412.002);

  • use “Other barred crime” as the reason for non-selection (MS 07412.003);

  • Use the Rep Payee Applicant “Note Type” on the Make Note screen to document the 208,811, or 1632(a) criminal information;

  • Check box to send non-select notice to applicant; and

  • find a new (more suitable) payee candidate or consider direct payment, if appropriate.

If the applicant leaves before attesting to the application, use the Rep Payee Applicant “Note Type” on the Make Note screen to document the circumstances of the interview and your findings regarding criminal history and use “incomplete” as the non-select reason.

eRPS will not allow you to select an applicant with these violations. If the applicant insists the information is incorrect, contact your Regional Office.

REMEMBER: The Social Security Act prohibits anyone from serving as payee if they were ever convicted of a violation under section 208, 811, or 1632(a). This prohibition is permanent; that is, if an individual was ever convicted under one of these statutes, they are barred from serving as payee for life. There are no exceptions to this rule.

2. Payee with an unsatisfied felony warrant

If during the application process, the applicant responds that they have an unsatisfied felony warrant take the following action in the order below:

  • Determine if the warrant is for offense code 4901, 4902, or 4999;

  • Non-select applicants with such warrants on the Selection-Decision screen (MS 07412.002);

  • Use “Other barred crime” as the reason for non-selection(MS 07412.003);

  • Use the Rep Payee Applicant “Note Type” on the Make Note screen to document the unsatisfied warrant information;

  • Check box to send non-select notice to applicant; and

  • Find a suitable payee candidate or consider direct payment, if appropriate.

If the applicant leaves before attesting to the application, use the Rep Payee Applicant “Note Type” on the Make Note screen to document the circumstances of the interview and your findings regarding criminal history and abate the application.

If the offense is for something other than codes 4901, 4902, or 4999, you must determine whether this is a viable applicant, despite their criminal activity.

If the applicant alleges misunderstanding the question or providing an incorrect response, update the application with the correct response (while the application is still pending). If the applicant states that the warrant is satisfied or if the warrant is for an offense other than 4901, 4902, or 4999, obtain the appropriate documentation. For information on proof a warrant is satisfied see GN 02613.500A.2.

3. Representative Payee committed Representative Payee related fraud (RP committed RP related fraud)

When taking an application in the eRPS, you may get an alert, “RP committed RP related fraud.” This remark advises you that the applicant was convicted of fraud directly related to their payee duties and is barred from serving as payee for life. There are no exceptions to this rule. Some of the crimes associated with this alert are:

  • misuse;

  • conversion of benefits;

  • perjury; and

  • theft;

If you see this alert, take the following actions in the order below:

  • Non-select this applicant on the Rep Payee Selection-Decision screen (MS 07412.002);

  • Use “Other barred crime” as the reason for non-selection (MS 07412.003);

  • Check box to send non-select notice to applicant;

  • Use the Rep Payee Applicant “Note Type” on Make Note screen (MS 07415.002) to document that we bar the applicant from serving as a payee; and

  • Develop for a suitable payee or pay the beneficiary directly, if appropriate.

If the applicant leaves before attesting to the application, use the Rep Payee Applicant “Note Type” on the Make Note screen to document the circumstances of the interview and your findings regarding criminal history and use “incomplete” as your non-select reason.

If the applicant disagrees with the information we have related to this alert, contact the Regional Office (RO).

4. Payee applicant convicted of other crimes barring them from being a payee

If during the application process, you discover the applicant has a felony conviction of any of the twelve crimes described in GN 00502.133A.4 in this section, take the following steps to “non-select” the payee applicant in the order below:

  • Do not take any additional information and complete the payee application process (taking the application, printing the application and, having the applicant attest);

  • Non-select this applicant on the Selection-Decision screen, see MS 07412.002;

  • Select “Criminal Policy” as the non-selection reason on the Non-Select Applicant screen, see MS 07412.003;

  • Use the Rep Payee Applicant “Note Type” on the Make Note screen to document the barred crime information; and

  • Develop for a suitable payee or payee the beneficiary directly, if appropriate.

If the applicant leaves before attesting to the application, see GN 00502.113D.1.

The following are examples of possible situations that you may encounter. In each of these situations, we barred the payee applicant from serving as payee.

  • Example 1

    Matt comes into the local field office (FO) to become payee for their neighbor and friend whom they have known for over 20 years. During the application process, Matt answers yes to being in prison for more than one year. They also answer yes to the felony conviction question. You question them about the felony conviction and the prison time. Matt explains in 1970 they received an armed robbery conviction and served 5 years in prison. Matt cannot serve as payee for their neighbor because they were convicted of one of the barred crimes in GN 00502.133A.4 in this section and does not meet one of the exceptions.

  • Example 2

    Jane is currently payee for two unrelated individuals. They come in the local FO to become payee for their aunt, who has Alzheimer’s, and now lives with them. During the application process, Jane answers yes to the felony conviction question. They explain their conviction was from committing forgery to pass a series of bad checks. SSA bars Jane from serving as payee for their aunt.

    Furthermore, since the field office became aware of Jane’s criminal history, the field office will remove them as payee for the two unrelated individuals. The field office will need to find a new payee or determine if the beneficiary is capable and can be paid directly. Jane can no longer serve as payee and cannot be selected as payee because they were convicted of one of the barred crimes in GN 00502.133A.4 in this section and does not meet one of the exceptions.

  • Example 3

    Joe is the custodial court-appointed legal guardian for their parent and currently serves as their parent's payee. They come in to the local field office to become payee for their niece, who recently moved in with them. Prior to interviewing Joe, you retrieve a PUPS query and discover they were in prison for 1 year from 1997 to 1998. During the application process, you discuss the prison history with Joe. They explain their conviction was from filing a fraudulent food stamps application. SSA bars Joe from serving as payee for their niece because they do not meet the exceptions in GN 00502.133A.4 in this section; however, they may continue to serve as payee for their parent because they are their custodial court appointed legal guardian which is one of the exceptions.

  • Example 4

    George comes in to the FO to become payee for their spouse, who recently went into a nursing home due to Alzheimer’s. During the eRPS application process, you conduct a criminal background check on George. You notice they received a sexual assault conviction 40 years ago. You question George about their conviction and they indicate they were convicted of the sexual assault during their first year of college. George cannot serve as payee for their spouse because they was convicted of a crime listed in GN 00502.133A.4 in this section and does not meet one of the exceptions.

5. Representatives or healthcare providers barred under section 1136

If you receive information on a representative or healthcare provider convicted of any violation under Title XVIII of the United States Code contact your regional office. The RO should contact CO for further processing instructions.

C. Policy for individuals with criminal history not barred from serving as payee

1. Applicants who have past criminal behavior (other than those listed in GN 00502.133A):

If you have information that a payee applicant has a history of criminal behavior (e.g., self-reported, Background Check Results screen in eRPS), carefully consider this information when making the payee suitability determination. An applicant with criminal history is a questionable payee choice, as defined in GN 00502.132.A.2.

Do not appoint someone with a criminal past, unless you determine:

• you determine there is no more suitable payee available and direct pay is prohibited, for more information, see GN 00502.001;

• the applicant does not pose a risk to the beneficiary; and

• the applicant will act in the best interests of the beneficiary.

Use the Rep Payee Applicant “Note Type” on the Make Note screen to document your justification for appointing the applicant (MS 07415.002).

To make a suitability determination you must consider all evidence available and weigh all factors that indicate the applicant poses no risk to the beneficiary and will act in the beneficiary’s best interest including:

  • the type of crime;

  • when the crime was committed;

  • the relationship of the applicant and the beneficiary; and

  • the custody of the beneficiary.

Minor crimes or crimes that occurred many years ago may have limited impact on your determination. Crimes that occurred recently suggest a much more significant risk to the beneficiary.

EXAMPLE: John, a 40-year old wage earner, files to be payee for their parent who lives with them. They advise us that they received a felony conviction for stealing a car when they were 18. After you conduct a criminal background check on John in eRPS, you do not see any further criminal history. The conviction for stealing a car 22 years ago does not appear to indicate that they are likely to misuse their parent’s benefits. You may select John as payee if they are the best choice.

D. Process for criminal monitoring of payees

To monitor current payees, SSA receives current criminal information from OIG and law enforcement agencies. This information is either:

  • posted to the eRPS (i.e., sec 208/811/1632 – Representative Payee Related Fraud violations); or

  • matched against the eRPS.

If a payee is convicted under section 208/811/1632 or has a conviction for RP related fraud the regional office will notify the field office. The field office must remove the current payee and develop for a new payee or consider direct payment to the beneficiary. If there is a PUPS or Fugitive Felon match against the eRPS, the local field office receives an alert so that we can initiate a continued suitability investigation. When you review a negative remark, receive an alert, or learn of questionable history, consider all this information before making your decision about the continued suitability of the payee.

If an individual is currently serving as payee and you discover they were convicted of any of the twelve crimes listed in GN 00502.133A.4 you must:

  • Remove them as payee;

  • Develop for a new payee or consider direct payment to the beneficiary, unless the payee meets one of the exclusions listed in GN 00502.133A.4. in this section.

For information on determining capability for adult beneficiaries, see GN 00502.020. For information on determining capability for children, see GN 00502.070. For information on direct payment prohibitions, see GN 00502.001.

NOTE: Any time you select (or continue payment to) a payee in spite of a questionable information indicator, you must document reasons for your decision, use the Rep Payee Applicant “Note Type” on the Make Note screen to document in eRPS.

E. References

  • GN 02613.500 Reinstating Benefits

  • GN 00502.001 Capability Determination and Representative Payee Payment Overview

  • GN 00502.020 Determining Capability-Adult Beneficiaries

  • GN 00502.070 Developing Capability-Children

  • GN 00502.132 Selection a Qualified Representative Payee

  • MS 07410.003 Fugitive Felon Information screen

  • MS 07410.004 Prisoner Information screen

  • MS 07410.005 Criminal Warrant Questions screen

  • MS 07410.006 OIG Fraud Information screen

  • MS 07415.002 Make Note screen


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0200502133
GN 00502.133 - Payee Applicant is a Felon or Fugitive or Has Been Convicted of Other Criminal Act - 05/23/2023
Batch run: 05/23/2023
Rev:05/23/2023