Misrepresentation and scheme or device.

CFR · 2024-01-01 · US · Title 7

(a) In addition to other penalties, sanctions or remedies as may apply, all or any part of a payment otherwise due a person or legal entity on all participating dairy operations in which the person or legal entity has an interest may be withheld or be required to be refunded if the person or legal entity fails to comply with the provisions of this subpart or adopts or participates in adopting a scheme or device designed to evade this subpart, or that has the effect of evading this part. Such acts may include, but are not limited to: (1) Concealing information that affects a registration or coverage election; (2) Submitting false or erroneous information; or (3) Creating a business arrangement using rental agreements or other arrangements to conceal the interest of a person or legal entity in a dairy operation for the purpose of obtaining DMC payments the individual or legal entity would otherwise not be eligible to receive. Indicators of such business arrangement include, but are not limited to the following: (i) No milk is produced and commercially marketed by a participating dairy operation; (ii) The participating dairy operation has no appreciable assets; (iii) The only source of capital for the dairy operation is the DMC payments; or (iv) The represented dairy operation exists mainly for the receipt of DMC payments. (b) If the Deputy Administrator determines that a person or legal entity has adopted a scheme or device to evade, or that has the purpose of evading, the prov

official document · source cfr-2024 · id 7:§ 1430.419