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.

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 he or she has an unsatisfied felony warrant for one of the following three offenses:

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  escape from custody (offense code 4901);

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

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  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 he or she 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.

Individuals convicted of RP related fraud means the person was convicted of fraud directly related to his or her 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.

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:

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

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

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  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;

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

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

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

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  recipient of a presidential or gubernatorial pardon for the conviction.

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

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:

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  Initial application for benefits;

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  Continuing entitlement to benefits;

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  Amount of benefits under Title II or Title XVI.

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:

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

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

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  misuse of benefits;

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  Social Security number fraud; and

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  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:

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

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

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

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

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

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  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 he or she was 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, he or she is barred from serving as payee for life. There are no exceptions to this rule.

If during the application process, the applicant responds that he or she has an unsatisfied felony warrant take the following action in the order below:

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

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

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

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

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

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  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 his or her 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.

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 his or her 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:

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  misuse;

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  conversion of benefits;

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  perjury; and

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  theft;

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

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

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

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  Check box to send non-select notice to applicant;

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  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

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  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).

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:

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

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

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

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

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  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.

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  Example 1

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

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  Example 2

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

  Furthermore, since the field office became aware of Jane’s criminal history, the field office will remove her 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 she was convicted of one of the barred crimes in GN 00502.133A.4 in this section and does not meet one of the exceptions.

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  Example 3

  Joe is the custodial court-appointed legal guardian for his mother and currently serves as his mother’s payee. He comes in to the local field office to become payee for his niece, who recently moved in with him. Prior to interviewing Joe, you retrieve a PUPS query and discover he was in prison for 1 year from 1997 to 1998. During the application process, you discuss the prison history with Joe. He explains his conviction was from filing a fraudulent food stamps application. SSA bars Joe from serving as payee for his niece because he does not meet the exceptions in GN 00502.133A.4 in this section; however, he may continue to serve as payee for his mother because he is her custodial court appointed legal guardian which is one of the exceptions.

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  Example 4

  George comes in to the FO to become payee for his wife, 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 he received a sexual assault conviction 40 years ago. You question George about his conviction and he indicates he was convicted of the sexual assault during his first year of college. George cannot serve as payee for his wife because he was convicted of a crime listed in GN 00502.133A.4 in this section and does not meet one of the exceptions.

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.

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:

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  the type of crime;

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  when the crime was committed;

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  the relationship of the applicant and the beneficiary; and

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  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 his mother who lives with him. He advises us that he received a felony conviction for stealing a car when he was 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 he is likely to misuse his mother’s benefits. You may select John as payee if he is the best choice.