Replies

C. Statutes of Limitations

When referring cases for prosecution in either criminal or civil court, the county dss must be aware of the statutes of limitations that apply to these cases. These statutes affect the amount of overpayment presented in court and the specific charges brought against the recipient.

1. Criminal Statute - NCGS 15-1 is the statute of limitations for criminal misdemeanors. This statute allows prosecution action of misdemeanors to be taken no later than two years after the fraudulent act occurred. A misdemeanor under the current NCGS 108A-64 are cases involving $400.00 or less.

2. There is no statute of limitations for felonies, that is, cases involving over $400.00. However, prior to July 1, 1977, all fraud cases against the Medical Assistance program were misdemeanors. Therefore, for cases in which a fraudulent act was committed prior to July 1, 1977, the criminal statute of limitations has expired regardless of the amount of the overpayment for that act. The North Carolina Attorney General's Office has rendered the opinion that an act is determined as the initial false statement, misrepresentation, and/or omission of fact, running to the next recertification or contact with the client at which time false statement, misrepresentation, and/or omission of fact could have been corrected. Each certification period or period between contacts, thereafter, during which time the recertification, misrepresentation, and/or omission of fact is perpetuated, is considered a separate offense.

Therefore, in cases involving overpayments made prior to July 1, 1977, if a recertification period began prior to July 1, 1977, and continued after that date, that specific recertification period would not be prosecutable in criminal court regardless of the amount as the statute of limitations has expired.

3. Civil Statute - The civil statute of limitations, NCGS 1-52, runs for three years from the date the act is discovered, or should have been discovered through the exercise of reasonable care.

NOTE: If the recipient has signed a repayment agreement containing the word "Seal" next to the signature, the civil statute of limitations for enforcement of collection is ten years from the date the document was signed. However, the client must circle the word “Seal.” The investigator should contact the county attorney for further information regarding this point.