§ 3-2-5. Protection against fraud and deceit  


Latest version.
  • (a) Any person who shall knowingly make any false statement or shall falsify or permit to be falsified any record or records of the System in any attempt to defraud the System shall be guilty of a misdemeanor and shall be punished accordingly.

    (b) Any person who shall knowingly make any false statement or shall falsify or permit to be falsified any record or records of the System in an attempt to defraud the System shall forfeit all rights to the benefit or allowance obtained by such misrepresentation. Making a false statement or falsifying or permitting to be falsified any record of this System in an attempt to defraud the System shall constitute grounds for dismissal from service.

    (c) Whenever the Board shall find, after notice and hearing, that a person has obtained a benefit or allowance from this System by false statement or falsification of record, it shall immediately terminate the benefit or allowance if the entire benefit or allowance was obtained by such misrepresentation or the additional amount of the benefit or allowance so obtained by such misrepresentation. Any benefit or allowance or additional amount of a benefit or allowance obtained by false statement or falsification of record shall be deemed to be an overpayment and the Board shall take all necessary legal and administrative steps to recover the overpayment.

    (d) The Board shall adopt rules and regulations pursuant to Section 3-2-15 of this Article to implement the provisions of this section; provided, however, that the failure of the Board to do so shall not prevent the implementation of the sanctions called for by this Section. A final judgment of conviction by a court of competent jurisdiction in a prosecution under Subsection (a) shall be prima facie evidence of fraud under Subsections (b) and (c) of this Section; provided, however, that a conviction under Subsection (a) of this Section shall not be a prerequisite for action by the Board under Subsections (b) or (c) of this Section. The remedies provided the System under this Section are in addition and supplemental to any other remedies it may have under law. (20-81-3; 27-90-3, § 1.)