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    DOJ April 13, 2020 Letter Re Civil Debt Collection Covid-19/Coronavirus

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    Scott Deatherage
    U.S. attorneys' offices directed to stop affirmative civil debt collection in a March 31 letter from acting Director of the Executive Office for U.S. Attorneys Corey Ellis; follow up letter April 13, 2020. In effect until at least until May 31.

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    DOJ April 13, 2020 Letter Re Civil Debt Collection Covid-19/Coronavirus

    Uploaded by

    Scott Deatherage
    36 views3 pages
    U.S. attorneys' offices directed to stop affirmative civil debt collection in a March 31 letter from acting Director of the Executive Office for U.S. Attorneys Corey Ellis; follow up letter April 13, 2020. In effect until at least until May 31.

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    DOJ April 13, 2020 Letter re Civil Debt Collection Covid-19/Coronavirus

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    U.S. attorneys' offices directed to stop affirmative civil debt collection in a March 31 letter from acting Director of the Executive Office for U.S. Attorneys Corey Ellis; follow up letter April 13, 2020. In effect until at least until May 31.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    36 views3 pages

    DOJ April 13, 2020 Letter Re Civil Debt Collection Covid-19/Coronavirus

    Uploaded by

    Scott Deatherage
    U.S. attorneys' offices directed to stop affirmative civil debt collection in a March 31 letter from acting Director of the Executive Office for U.S. Attorneys Corey Ellis; follow up letter April 13, 2020. In effect until at least until May 31.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    U.S.

    Department of Justice

    Executive Office for United States Attorneys

    Office of the Director Room 2261, RFK Main Justice Building (202) 252-1000
    950 Pennsylvania Avenue, NW
    Washington, DC 20530

    MEMORANDUM- Sent via Electronic Mail

    DATE: April 13, 2020

    TO: ALL UNITED STATES ATTORNEYS


    ALL FIRST ASSISTANT UNITED STATES ATTORNEYS
    ALL EXECUTIVE UNITED STATES ATTORNEYS
    ALL CRIMINAL CHIEFS
    ALL CIVIL CHIEFS
    ALL ADMINISTRATIVE OFFICERS
    ALL AFFIRMATIVE CIVIL ENFORCEMENT COORDINATORS
    ALL HEALTH CARE FRAUD COORDINATORS
    ALL FINANCIAL LITIGATION COORDINATORS

    FROM: Corey F. Ellis


    Acting Director

    SUBJECT: Amendment to and Clarification of Temporary Suspension of Affirmative


    Civil Debt Collection and Enforcement Activities during the COVID-19
    Pandemic Regarding Affirmative Civil Enforcement (ACE) Matters

    CONTACT: Susan Strawn


    Affirmative Civil Enforcement and
    Health Care Fraud Coordinator
    Office of Legal Programs
    (202) 252-5548
    [email protected]

    The Executive Office for United States Attorneys (EOUSA) issued a memorandum on
    March 31, 2020, entitled “Temporary Suspension of Affirmative Civil Debt Collection and
    Enforcement Activities during the COVID-19 Pandemic” (Temporary Suspension). That
    memorandum indicated that the Temporary Suspension of affirmative civil debt collection and
    enforcement extended to the filing of liens. However, the filing of judgment liens against
    debtors’ property directly protects the government’s interests and does not require a response
    from the debtor. Therefore, effective immediately, the Temporary Suspension – as it relates to
    the filing of liens only – is lifted.

    Since the Temporary Suspension was announced on March 31, questions have arisen
    regarding its impact, if any, on ACE matters. This memorandum clarifies the application of the
    Temporary Suspension to ACE matters.1

    1. The Temporary Suspension does not impact a USAO’s ability to investigate, file
    complaints, litigate to judgment, or settle any ACE matter. As stated in paragraph 1
    of the March 31 memorandum, the “Temporary Suspension does not apply to
    ongoing litigation, appeals, or cases that are not subject to a final, non-appealable
    judgment.”

    2. The Temporary Suspension does not prohibit a USAO from collecting settlement
    payments pursuant to a voluntary settlement agreement. See March 31
    Memorandum, p. 2 (“Voluntary payments are still permitted.”). This includes the
    collection of payments pursuant to a settlement agreement that provides for payments
    over time, including payments that are due during the suspension period. Such
    payments are not debts on “active payment plans with FLUs,” as referenced in the
    March 31 memorandum.

    3. If a settlement agreement is breached, the Temporary Suspension does not prohibit


    pursuing any of the remedies made available to the United States by the terms of the
    parties’ settlement agreement, including, but not limited to, seeking a default
    judgment.

    4. If a default judgment is obtained, the Temporary Suspension prohibits executing on


    that judgment through May 31, 2020. The suspension of judgment collection does
    not affect the accrual of interest or other amounts that may become due as a result of
    a delay in payment. Moreover, the Temporary Suspension, as herein amended, does
    not prohibit a USAO from filing a judgment lien, investigating the availability of
    assets available for enforced collection, or taking any other necessary action to
    protect the government’s interest. In the event that a USAO has reason to believe the
    defendant is dissipating or fraudulently transferring assets, the office should take all
    appropriate steps to protect the assets.

    Please remember that, although the Temporary Suspension does not apply specifically to
    pre-judgment ACE matters, the intent of the Memorandum – to provide financial respite during
    the crisis – may be appropriate to consider in individual cases. USAOs are encouraged to use
    their discretion when negotiating appropriate resolutions in their ACE cases.

    1
    For purposes of this memorandum, “ACE matters” includes False Claims Act, FIRREA, and
    other cases brought for damages, civil penalties, and/or equitable remedies. “ACE litigation”
    does not include suits for debts on a sum certain referred by agencies, such as suits to collect
    student loans or SBA loans.
    2
    Finally, as noted above, USAOs should make every effort to protect the government’s
    interests. If ACE defendants seek ability to pay settlements, are seeking to renegotiate terms or
    payment schedules of prior settlements, or appear likely to file bankruptcy, ACE attorneys are
    encouraged to consult with bankruptcy attorneys in your office regarding how best to protect the
    government’s interests.

    cc: All United States Attorneys’ Secretaries

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