38 CFR §21.5828

1. (a)False statements. An individual who attempts to obtain educational assistance or subsistence allowance or both through submission of false or misleading statements is subject to civil penalties or criminal penalties or both under applicable Federal law.
2. (b)Effect of false statements on subsequent payments. A determination that false or misleading statements have been made will not constitute a bar to payments based on training to which the false or misleading statements do not apply.