Verification Requirements

  1. Applicant must utilize equipment and structures reimbursed with cost share funds for the intended purpose of the program for a minimum of five (5) continuous years from date of purchase. Applicants who fail to comply with minimum use requirements may be required to repay any portion of or all the funds distributed to them under TAEP.
  2. Site visits relating to the performance of the project before, during, and after completion may take place. Site visits may include verification of cost share guidelines and program eligibility to ensure applicants meet eligibility and minimum livestock/acreage requirements for chosen program(s).
  3. Failure to comply with all aspects of the cost share guidelines may result in denial of applicant approval, denial of reimbursement payments, repayment of cost share funds, and/or suspension from future TAEP funding cycles.
  4. Providing any false, fraudulent, or misleading information may result in suspension of the applicant’s operation, civil litigation, and/or criminal prosecution.

Civil and Administrative Risks

Submitting false information as part of a TAEP application or reimbursement request can create civil liability.

Under the Tennessee False Claims Act, the State can seek:

  • Up to three times the amount of funds improperly received, 
  • A civil penalty of $2,500–$10,000 for each false claim, and
  • Payment of the State’s costs to bring the case (e.g., court costs, attorneys fees, etc.).

Program consequences can occur even without a court case, including:

  • Denial of approval or reimbursement, 
  • Repayment of funds, and
  • Suspension from future funding cycles.

Criminal Risks

  • Providing false information can also lead to criminal charges, depending on the facts and the dollar amount involved. 
  • The Department, in coordination with local District Attorneys, has successfully prosecuted criminal charges related to fraud within TAEP.
  • Theft of state funds is the most direct charge. Penalties increase with the value of the funds involved, ranging from a misdemeanor ($1,000 or less) to high level felonies involving multi-year prison ranges.
  • Attempted theft applies even if the funds were not actually paid.
  • Other possible charges include:
  1. Forgery (e.g., falsified invoices, receipts, or payment instruments), which is always at least a Class E felony
  2. Conspiracy if multiple people coordinated.
  • Courts may require restitution (repayment) in addition to any fines or jail time.

Bottom line: Submitting false information as part of a TAEP application or reimbursement can lead to repayment, program exclusion, civil penalties, and criminal charges ranging from misdemeanors to serious felonies.