IPV - NA Disqualification Penalties
Participants found to have committed an NA Intentional Program Violation (IPV) are ineligible to receive benefits in accordance with the prescribed penalties. Code the participant DF on SEPA.
 
NOTE The household participant must be notified of the action by the administrative disqualification appeal or the court of appropriate jurisdiction that imposed the penalty.
 
The disqualification period for a participant convicted of an IPV that occurred on or after October 01, 1996 is as follows:
 
One year for the first violation.
Two years for the second violation.
Permanently for the third violation.
 
The disqualification period for a participant convicted of an IPV that occurred anytime from May 01, 1983 through September 30, 1996 is as follows:
 
Six months for the first offense.
Twelve months for the second offense.
Permanently for the third offense.
 
The disqualification period for violations involving the trading of NA for controlled substances or controlled substances for NA is as follows:
 
Two years for a first violation.
Permanent for the second violation.
 
The participant is permanently disqualified when convicted of trafficking NA benefits of $500 or more.
 
The participant is ineligible to receive benefits for ten years when found by a court of law to have made a fraudulent statement or representation with respect to identity or residence in order to receive multiple benefits simultaneously.
 
Once a disqualification penalty has been imposed against a participant currently receiving benefits, the period of disqualification continues uninterrupted regardless of the eligibility of the remaining NA participants.
 
When periods of disqualification imposed by a court and an administrative disqualification appeal coincide, the court ordered disqualification runs concurrently with the disqualification imposed by the appeal.
 
When the court fails to impose disqualification, and the current disqualification procedures are applicable, FAA imposes the penalties, unless this is contrary to the court order.