UCMJ Article 132 and BAH Fraud: What Service Members Need to Know

If you’re in the military, you know that you and your fellow service members are held to the highest standards of integrity, honesty, and accountability. The government takes legal offenses against the UCMJ (Uniform Code of Military Justice) very seriously, including all types of fraud. 

BAH fraud (Basic Allowance for Housing fraud) can result in severe penalties for service members caught violating Article 132 UCMJ. While there are many variables to consider, it’s important to note that even accidental BAH fraud is taken very seriously. No one should take BAH fraud allegations lightly, even if the service member didn’t intentionally do anything wrong. 

In this guide, Conway & Associates will break down BAH fraud, how UCMJ Article 132 applies, its potential consequences, and why having experienced legal representation is essential. If you or a service member you know is accused of BAH fraud, the time to take legal action is now. 

Contact Daniel Conway & Associates today to schedule your free initial consultation and get your legal defense rolling. The longer you wait, the more serious your case becomes. 

What Is BAH Fraud?

Basic Allowance for Housing (BAH) is monetary compensation given to service members who aren’t afforded government housing. The government typically provides BAH if you serve in an area that doesn’t have adequate on-base housing for service members. It’s calculated based on rank, location, local housing market, dependency status, and marital status. 

BAH fraud occurs when a service member provides incorrect or false information and/or withholds essential updates in order to receive a higher allowance than they are technically entitled to. The government goes to great lengths to rein in this type of fraud given how much money is allocated to BAH in the federal military budget. 

Examples of BAH Fraud

BAH fraud examples include but are not limited to:

• Claiming a higher BAH rate through false marital or dependency status.
• Failing to inform the Military Housing Authority of changes to your marital status after a divorce or separation.
• Providing a false or outdated address to get a higher BAH based on a more expensive location.
• Colluding with another party (landlord, spouse, etc.) to falsify documentation to increase or maintain BAH.
• Receiving BAH for private housing while living on base or in government-provided facilities.

Some service members incorrectly think a minor change doesn’t warrant informing the Housing Authority or that they deserve more based on their situation. Failing to follow UCMJ guidelines can result in serious consequences for service members and their loved ones. While BAH fraud is always taken extremely seriously, intention and circumstance are typically taken into account. 

UCMJ Article 132 (Fraud) and the Connection to BAH Fraud

The Uniform Code of Military Justice outlines very specific laws and regulations that deal with different types of fraud. Specifically, UCMJ Article 132 deals with fraud committed by service members against the US government and military. 

UCMJ Article 132 applies when a service member makes false claims or deceptive statements to obtain property, money, or some other benefit from the government. “Any person subject to this chapter— (1) who, knowing it to be false or fraudulent— (A) makes any claim against the United States or any officer thereof; or (B) presents to any person in the civil or military service thereof, for approval or payment, any claim against the United States or any officer thereof…” 

In regards to regulating BAH, Article 132 is the government’s first line of defense against false housing claims. Prosecutors typically examine three key elements outlined by UCMJ Article 132 when examining cases of potential BAH fraud:

Knowingly Making a False Claim

For BAH fraud to fall under the jurisdiction of Article 132 UCMJ punishment, prosecutors must provide proof that the service member in question knowingly submitted false information. This can include forging documents, falsifying or failing to update marital status, or misleading the government about a dependent’s location or eligibility. 

However, everyone makes mistakes. Genuine clerical errors (like failing to update your residential address) made during the BAH application process may exempt you from punishment. Prosecutors must meet a threshold for substantive evidence in order to pursue criminal charges. 

On the other hand, if you’re aware of an error and fail to correct it, you may be liable for BAH fraud, even if the initial mistake was genuine. It’s important to correct any errors you find as soon as possible or your intent may be misconstrued as criminal. 

Intending to Deceive the Government

Determining intent is critical in most BAH fraud UCMJ cases. The prosecution must prove that any false information was provided deliberately with the intent of deceiving the government to receive financial benefits.

For example, you move into a cheaper apartment in the same building but deliberately keep your old address to receive the same BAH rate. In this case, your deceitful intent would be considered BAH fraud. 

However, if you realize you’ve received unauthorized benefits through a mistake or clerical error and immediately correct it, you’ll probably escape any punishment. Additionally, if you genuinely believed you were entitled to certain benefits but were in fact not, you may have a viable defense against military BAH fraud. 

Obtaining Something of Value

For prosecutors to move forward on BAH fraud cases, they must prove that you received tangible gains stemming from a fraudulent claim. Under Article 132, this typically means receiving housing allowances or funds beyond what you might be legally entitled to under BAH guidelines. 

After proving army BAH fraud occurred, the government typically determines punishment based on how much was overpaid to the servicemember. Higher sums carry more severe consequences than lower sums. 

For example, a service member who receives an additional $300 per month beyond their legal entitlement won’t be punished as severely as someone else who profited $1000 per month. It’s important to determine the exact amount of unauthorized funding you’ve received to formulate a competent legal defense. 

How Serious Is BAH Fraud?

BAH fraud is one of the most prosecuted offenses within the military justice system, meaning it’s an extremely serious offense. Defrauding tax-payer-funded programs like BAH payments is viewed as not only theft but also a violation of the inherent trust placed in service members by the US citizenry.  

Each BAH fraud case is unique. The severity of your potential BAH fraud case often depends on a few factors, including but not limited to:

• The total of unauthorized funds received.
• The length of time the alleged fraud went on.
• Any prior disciplinary issues on record.
• If it’s clear that there was an intentional plan to deceive the military.

If you’ve been made aware of errors in your BAH application or are afraid of a potential BAH fraud case, contact Daniel Conway & Associates today. The longer you wait, the higher the risk that consequences for your alleged BAH fraud case will become more severe. Call us now. 

Consequences of BAH Fraud

The consequences for BAH fraud cases can be severe, not only in the legal sense. Article 132 charges may dramatically impact your personal life. Service members found guilty of BAH fraud under UCMJ Article 132 may face the following punishments:

• Court-martial and a federal conviction 
• Forfeiture of pay and allowance (not limited to BAH) 
• Rank demotion 
• Dishonorable discharge 
• Military prison 

Legal punishments aren’t the end of the potential consequences of a BAH fraud conviction. Not only might you experience an intense financial impact, but BAH fraud charges can destroy your military career, severely limit future employment opportunities, and impact your personal relationships. Needless to say, a BAH fraud conviction can damage your reputation both inside and outside the military structure. 

How to Prevent BAH Fraud

It’s essential to take the correct steps to protect yourself from a BAH fraud accusation, even if it’s unsubstantiated. Covering your bases and knowing the ins and outs of Article 132 might save you a huge headache with the brass, especially if it’s all just a misunderstanding. 

Every service member should take the following steps when updating/checking your BAH payment application:

• Updating records – Make sure you update any relevant residency records or payment applications promptly and accurately. 
• Double-checking pay statements – Pay statements aren’t always right. Ensuring all information is correct and up-to-date is essential to avoid potential issues. 
• Maintaining honest communication – Don’t lie to the government. It’s a bad idea. 
• Understanding rules and guidelines – Study Article 132 and other relevant UCMJ articles to have a deeper understanding of what responsibilities you have concerning BAH. 

Legal Representation for BAH Fraud

If you or a service member you know are suspected or charged with BAH fraud, you need to seek legal aid immediately. It’s absolutely essential to have an experienced legal team that knows the ins and outs of Article 132 within the broader context of UCMJ legal doctrine. Without one, you may face severe consequences that could have been avoided otherwise. 

Your search for the right legal defense for BAH fraud ends here. Conway and Associates have years of experience dealing with BAH fraud and other Article 132 cases just like yours. Daniel Conway’s long career defending service members began in the military, so he knows how serious these cases can be; for your career, for your personal life, for your freedom. 

Contact Daniel Conway and Associates now to schedule your free initial consultation with a BAH fraud lawyer. We’ll outline potential defense strategies, helping you pick the right course of action from day one. Don’t wait. Call us today at (833) 934-8625.