Duty to report fraud involving Federal funds

(a) Reporting requirement Not later than 180 days after receiving a fraud warning involving covered Federal funds, a covered official shall report such warning to the Director of the Federal Bureau of Investigation. (b) Condition of receipt of Federal funds In order to be eligible to receive Federal funds for a fiscal year, the chief executive of a State shall certify to the head of the Federal agency providing such funds that during the previous fiscal year the covered officials of the State have substantially complied with the requirement under subsection (a). (c) Offense Whoever, being a covered official, knowingly— (1) violates the requirement under subsection (a); or (2) obstructs, interferes with, or impedes a Federal, State, or Inspector General investigation involving fraud involving covered Federal funds, shall be fined under title 18, United States Code, imprisoned for not more than 10 years, or both. (d) Debarment The head of an agency that oversees the distribution of Federal funds, with respect to which a covered official has been convicted of an offense under subsection (c), may prohibit such covered official from overseeing the distribution of such funds.